Were membership and daily-use fees for a private Florida dog park taxable admissions?

Plain-English summary

Florida treated both membership fees and daily-use fees for a private dog park as taxable admissions.

The park allowed dogs to run freely, but every dog had to remain accompanied by its owner or another handler. Although the membership was recorded in the dog's name, the fee necessarily admitted a person along with the dog.

The Department found the park was a recreational facility and applied the rule taxing member and nonmember user fees that grant access to recreational facilities.

What this means for you

Dog-park and pet-recreation operators

Registering the membership to the animal does not avoid admissions tax when a person must enter and use the facility too.

Accountants and tax professionals

Apply the admissions definition to the practical access sold. Both recurring memberships and one-day access received the same treatment here.

Common questions

Were membership fees taxable? Yes.

Were daily nonmember fees taxable? Yes.

Why did the human-admission rule apply to a dog park? Dogs could not enter alone; an owner or handler had to accompany them and also used the recreational facility.

Citations and references

• Fla. Stat. § 212.02(1)
• Fla. Stat. § 212.04(1)(a)
• Fla. Admin. Code R. 12A-1.005(5)(d)2.f.
• Fla. Stat. § 213.22

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 99A-014

Original ruling text

SUMMARY

A determination as to whether membership and daily fees
paid for admission to a dog park, where dogs may roam under
supervision of their owners or handlers, are taxable
admissions within the meaning of section 212.02(1), F.S.
The answer is that the fees are taxable admissions because
persons pay the fees and must be admitted to the park along
with their dogs. Dogs are not permitted in the park
without their owners or handlers.

Mar 31, 1999

Re: Technical Assistance Advisement 99A-014
Sales & Use Tax - Private Dog Park
Sections 212.02(1); 212.04, F.S.
Rule 12A-1.005, F.A.C.

Dear :

This is in response to your letter dated XXX, for the
Department's issuance of a Technical Assistance Advisement
("TAA") concerning the above referenced party and matter. Your
letter has been carefully examined and the Department finds it
to be in compliance with the requisite criteria set forth in
Chapter 12-11, F.A.C. This response to your request constitutes
a TAA and is issued to you under the authority of section
213.22, F.S.

Discussion of Facts

The facts were provided in your letter and a telephone
conversation between us on XXX.

The Dog Park operates a private park area reserved for the use
of dogs and their owners or handlers. Inside the area, dogs
are allowed to run free, but a dog must be accompanied by a
person at all times that the dog is within the park. An owner

and dog wishing to use the park will join as a member. The
membership will be recorded in the name of the dog. Membership
terms vary from three months to a year. Payment of membership
fees is preferred in advance, although monthly plans are
available.

Memberships are not automatically given; the dog must have a
sociable temperament. Dogs can be banished from the park either
for the day or permanently if behavior is bad.

Because of incapacitation of either the dog or its owner, a
refund of membership fees may be made. If a dog should die, and
the owner wants to continue membership with a new dog,
continuation is not automatic; the new dog must pass the
sociability requirement.

On Sunday afternoons, nonmember dogs and their people may use
the park on a daily fee basis. The same park rules are
applicable to nonmembers.

Requested Advisement

Whether the membership fees and the daily fees paid for the use
of a dog park are subject to sales tax.

Discussion and Analysis of Law

Section 212.04(1)(a), F.S., states that every person is
exercising a taxable privilege who sells or receives anything of
value by way of admissions. Section 212.02(1), F.S., defines
the term "admissions" as follows:

The term "admissions" means and includes the net sum of
money after deduction of any federal taxes for admitting a
person or vehicle or persons to any place of amusement,
sport, or recreation or for the privilege of entering or
staying in any place of amusement, sport, or recreation....

Section 212.02(1), F.S., provides that dues and fees paid to
private clubs and membership clubs providing recreational or
physical fitness facilities are within the definition of taxable

admissions. Rule 12A-1.005(5)(d)2.f., F.A.C., provides that
user fees paid by members or nonmembers are taxable when they
entitle the payor to use of an organization's recreational
facilities.

There can be little doubt that the dog park is a recreational
facility. Certainly the intent is to provide recreation for the
dogs, but the owners or other handlers also enjoy the park
facility while they are there. The more difficult question is
whether section 212.02(1), F.S., includes this kind of facility
within the definition of "admissions." The statute speaks in
terms of admitting "a person or vehicle or persons." Without
doubt, a dog is not included within the definition. However,
every dog in the dog park must at all times be accompanied by
its owner or other person who is in charge of the dog. The
owner or other person is required to enter the park with the
dog.

Accordingly, both the fee charged to members and the daily use
fee charged to nonmembers are fees for admitting a person and a
dog to a place of amusement, sport, or recreation. Such fees
fall within the definition of taxable admissions.

This response constitutes a Technical Assistance Advisement
under section 213.22, F.S., which is binding on the Department
only under the facts and circumstances described in the request
for this advice, as specified in section 213.22, F.S. Our
response is predicated upon those facts and the specific
situation summarized above. You are advised that subsequent
statutory or administrative rule changes or judicial
interpretations of the statutes or rules upon which this advice
is based may subject similar future transactions to a different
treatment from that which is expressed in this response.

You are further advised that this response and your request are
public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of section 213.22,
F.S. Your name, address, and any other details that might lead
to identification of the taxpayer must be deleted by the
Department before disclosure. In an effort to protect the
confidentiality of such information, we request you notify the

undersigned in writing within 15 days of any deletions you wish
made to the request or this response.

Should you have any further questions concerning this matter,
please do not hesitate to contact me.

Sincerely,

Robert D. Heyde
Senior Attorney
Technical Assistance & Dispute Resolution
Control #36949