Which airline-support services at Florida airports were taxable: passenger and baggage services, security, janitorial work, or repairs?

Plain-English summary

Florida divided the airport services into nontaxable support work, taxable protection or cleaning services, taxable parts-based repairs, and one unresolved category.

Nontaxable services as described were ramp service, skycap service, positive baggage claim, wheelchair service, shuttle buses, baggage handling, aircraft cleaning, and electric-cart service.

Security service, usher or escort service, and ticket checking were taxable protection services. Janitorial service was taxable when performed on building interiors. Repair and maintenance of small equipment and vehicles was taxable when parts were provided.

Florida could not decide repair or maintenance of real property because the request did not describe the transactions sufficiently.

What this means for you

Airport contractors should list each service separately and document whether it involves protection, interior cleaning, parts, tangible property, or real-property work. A broad “airport services” label does not determine taxability.

Common questions

Q: Were wheelchair and baggage services taxable?
A: No, as described in the ruling.

Q: Were ticket checkers taxable?
A: Yes, as protection services.

Q: Was aircraft cleaning taxable janitorial work?
A: No under the described facts; interior building janitorial service was taxable.

Q: Did Florida decide real-property repairs?
A: No. The request lacked specific facts.

Citations and references

• Fla. Stat. § 212.05(1)(i)1.a. and b. — protection and cleaning services
• Fla. Admin. Code rr. 12A-1.006, 12A-1.0091, 12A-1.0092, and 12A-1.051
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 03A-031

Original ruling text

SUMMARY

QUESTION: Company provides a variety of services at
airports in Florida. The company seeks a determination as
to which of fourteen specifically described services are
subject to tax.

ANSWER - Based on Facts Below: The following described
services are not subject to tax: ramp service of airplanes,
skycap service, positive baggage claim, wheelchair service,
shuttle bus service, baggage handling, cleaning of planes,
and electric cart service.

The following services are taxable as protection services:
security service, usher/escort service, and ticket
checkers.

Janitorial service is a taxable cleaning service, if
provided to building interiors.

Repair and maintenance of small equipment and vehicles, if
parts are provided, is taxable as repairs to tangible
personal property.

A determination as to the taxability of repairs and
maintenance of real property cannot be made, since no
specific information was provided about the exact nature of
the transactions.

Jul 07, 2003

Re: Technical Assistance Advisement 03A-031
Sales and Use Tax
Services at Airports
Section 212.05(1)(i)1.a. and b., F.S.
Rules 12A-1.006, 12A-1.0091, 12A-1.0092, 12A-1.051, F.A.C.

Dear :

This is in response to your letter of June 4, 2003, which
requests a technical assistance advisement concerning the
services performed by your company at seven airports in Florida
for airlines. It is your specific request to obtain a
determination as to which of fourteen specifically listed and
described services that are performed by your company are
subject to tax.

DISCUSSION/OPINION

The State of Florida imposes sales and use tax on
transactions where tangible personal property has been sold and
on certain specifically enumerated services. Based on the
limited service descriptions that you have provided, these
services do not appear to involve the sale of tangible personal
property. Further, these services do not appear to be of a type
that is specifically taxed under Chapter 212, F.S. Accordingly,
these services would not be subject to Florida sales or use tax.

Ramp Service - emptying lavatories on the planes, de-icing
the planes.

Skycap Service - curbside baggage check-in

Positive Claim - matching ticketed baggage with passenger
tickets

Wheelchair Service - wheelchair pushing of passengers

Shuttle Bus Service - passenger movement in shuttle

Baggage Handling - baggage handling after check-in;
including loading into planes

Cabin Appearance - cleaning of planes

Electric Cart - passenger movement in cart through
concourse of airport

The following services are of a type that is properly

classifiable under Standard Industrial Classification (SIC) code
7381. As such, these services are taxable as protection
services pursuant to Section 212.05(1)(i)1.a., F.S., and Rule
12A-1.0092, F.A.C.

Security Service - guarding of doors and hangers

Usher/Escort - escorting under aged children or passengers
without visas

Ticket checkers - verifying the name on the ticket matches
the boarding passenger

The following service, if provided to building interiors,
is of a type that is classifiable under Standard Industrial
Classification (SIC) code 7349. As such, this service is
taxable as a nonresidential cleaning service pursuant to Section
212.05(1)(i)1.b., F.S., and Rule 12A-1.0091, F.A.C.

Janitorial Service - cleaning of airport areas

The following service, if parts are provided, is taxable as
a repair to and a sale of tangible personal property pursuant to
Rule 12A-1.006, F.A.C.

Repair and Maintenance - of small equipment and vehicles
(not planes)

The following service may or may not be taxable as repairs
or improvements to real property pursuant to Rule 12A-1.051,
F.A.C. No specific information about this service category has
been provided. The taxability of the service will depend on how
that transaction is structured and the intent of the parties.
Accordingly, no determination can be made with respect to this
service.

Repair and Maintenance - on real property

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 on 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 than
expressed in this response.

You are further advised that this response, your request
and related documents 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, which might lead to identification of the
taxpayer, must be deleted before disclosure. In an effort to
protect the confidentiality of such information, we request you
provide the undersigned with an edited copy of your request for
Technical Assistance Advisement, backup material and response
within fifteen days of the date of this advisement.

Sincerely,

Jeffery L. Soff
Tax Law Specialist
Technical Assistance and
Dispute Resolution

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