How did Florida sales tax apply to a cruise-to-nowhere operator's tickets, gaming, meeting rooms, vessel costs, berth, and shuttles?

Plain-English summary

Florida treated this cruise-to-nowhere business as a collection of separate taxable and exempt transactions. Gaming receipts were outside Chapter 212, but boarding tickets, meeting-room rentals contracted and paid for in Florida, and the city berth were taxable. Vessel-related and shuttle-vessel costs qualified for the section 212.08(8) partial exemption, while food sales depended on whether they occurred inside or outside Florida waters.

The requester was a foreign corporation headquartered in Florida that operated a gaming and entertainment ship. The ship would travel nine nautical miles offshore, remain at sea, and use high-speed shuttles so passengers could board or leave throughout the day.

Passenger and event receipts

The Department gave these answers:

• Gaming receipts: Not subject to sales tax because gaming receipts were outside Chapter 212.
• Food and beverages: Taxable when sold in Florida waters and exempt when sold outside Florida waters.
• Boarding fees: Taxable admissions under sections 212.02(1) and 212.04. A cruise to nowhere was not treated as transportation to another destination.
• Meeting-room rentals: Taxable because the group booking agreement was executed in Florida and estimated payment was due 30 days before the event, while the vessel was still in Florida. The combined agreement and payment occurred in the state.

The meeting-room price could cover only the room or also include boarding fees, food, beverages, tips, and possible cancellation fees. The Department's location analysis rested on the actual contract terms supplied.

Vessel and shuttle purchases

Relying on Department of Revenue v. New Sea Escape Cruises, Ltd., Florida applied the section 212.08(8) partial exemption to:

• The cruise ship purchase.
• Reconstruction and retrofit work in or outside Florida.
• Gaming equipment installed aboard.
• Other tangible personal property used on or incorporated into the vessel.
• Consumable and nonconsumable supplies.
• Lease payments or purchases of high-speed shuttle vessels carrying passengers to and from the offshore ship.

Food and beverages bought for resale aboard the vessel remained subject to section 212.07's resale provisions.

The city berth was taxable on the record provided

Section 212.03(6) taxed payments under the ten-year city berthing agreement. The vessel partial exemption did not extend to the berth.

The Department could not establish the separate port-authority exclusion in section 212.031(1)(a)8.a. from the submitted information. It specifically noted that the redacted city had not created a port authority as of the advisement date. Accordingly, the berth payments were taxable under the facts presented.

What this means for you

Cruise and excursion operators

Do not treat all revenue and purchases as one transaction. Tickets, gaming, food, event space, vessels, shuttles, and dock rent each follow different rules.

Businesses renting space aboard a vessel

Where the agreement is signed and payment is made can determine the sales location. This ruling taxed the meeting-room charge because both occurred in Florida before departure.

Port tenants

A vessel's interstate-commerce exemption does not automatically exempt dock rent. A port-property exclusion requires the statutory port-authority and use conditions to be established.

Common questions

Q: Were boarding fees taxable?
A: Yes. Florida treated them as admissions, not charges for transportation to another destination.

Q: Were meeting-room rentals taxable if the event occurred offshore?
A: Yes under these contracts, because the agreement and advance payment occurred in Florida.

Q: Were gaming receipts taxable?
A: No. The Department said gaming receipts did not fall within Chapter 212.

Q: Did the partial exemption cover the high-speed shuttle vessels?
A: Yes. Their lease or purchase qualified because they transported passengers to and from the cruise ship in international waters.

Q: Was the city berthing agreement exempt?
A: No on the supplied facts. The vessel exemption did not apply to the berth, and the Department could not determine that the port-authority property exclusion applied.

Citations and references

• Fla. Stat. § 212.02(1) — definition of admission
• Fla. Stat. § 212.03(6) — tax on boat docking or storage spaces
• Fla. Stat. § 212.031(1)(a)8.a. — exclusion for specified port-authority property
• Fla. Stat. § 212.04 — tax on admissions
• Fla. Stat. § 212.05 — sales and use tax on tangible personal property
• Fla. Stat. § 212.07(1)(b) — resale documentation
• Fla. Stat. § 212.08(8) — vessel partial exemption for interstate or foreign commerce
• Fla. Stat. § 315.02(2) — port authority definition
• Fla. Admin. Code r. 12A-1.0641 — calculation of the vessel partial exemption
• Department of Revenue v. New Sea Escape Cruises, Ltd., 894 So. 2d 954 (Fla. 2005) — partial exemption applied to cruises to nowhere
• Department of Revenue v. Kelly Boat Service, Inc., 324 So. 2d 651 (Fla. 1st DCA 1976) — cruise-to-nowhere receipts and extraterritorial sales
• Department of Revenue v. Pelican Ship Corp., 257 So. 2d 56 (Fla. 1st DCA 1972) — cruise sales and meeting-room transaction location

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 05A-029

Original ruling text

SUMMARY
Facts: Taxpayer is a foreign corporation with headquarters in ("City"), Florida. Taxpayer operates a gaming and
entertainment ship, which operates out of the ("City"), Florida. Taxpayer was formed for the sole purpose of operating
the gaming and entertainment ship featuring the "cruise to nowhere" concept.
Question: Is the taxpayer eligible for the partial exemption provided for in s. 212.08(8), F.S., on the purchase of the
vessel used in the operation of the "cruise to nowhere"?
Answer: Yes. Pursuant to the recent Florida Supreme Court case, Department of Revenue vs. New Sea Escape
Cruises, Ltd., 894 So.2d 954 (Fla. 2005), the taxpayer is eligible for the partial exemption provided in s. 212.08(8),
F.S.
Question: Are gaming receipts collected while in international waters subject to sales tax in Florida?
Answer: Gaming receipts do not come within the purview of Chapter 212, F.S., and are therefore not subject to sales
tax, whether or not the sale occurs outside Florida waters.
Question: Are bar and restaurant receipts collected while in international waters and bar and restaurant receipts
collected while in Florida waters subject to sales tax?
Answer: Where food or beverage is sold to customers, such sales are taxable when sold in Florida waters and are
exempt when sold outside Florida waters. The courts have clearly established that, when sales are made extraterritorially, it is beyond the power of the State of Florida to tax such sales.
Question: Are receipts from boarding fees subject to sales tax?
Answer: The charge for a boarding pass or ticket sold to a customer is the price of an admission. Such charge is
within the definition provided in s. 212.02(1), F.S., and is therefore subject to sales tax.
Question: Are receipts from rental of meeting room space subject to sales tax?
Answer: The receipts from rental of meeting room space are subject to sales tax, since the transaction would be
considered to have occurred where the combined event of the agreement and payment were made, in this case, both
are made in Florida.
Question: Is the reconstruction and retrofit of vessel performed out of the country or in Florida eligible for the partial
exemption in s. 212.08(8), F.S.?
Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the reconstruction
and retrofit of the vessel used in interstate and foreign commerce to transport persons in interstate and foreign
commerce.

Question: Is gaming equipment purchased and installed out of the country or in Florida eligible for the partial
exemption provided for in s. 212.08(8), F.S.?
Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase and
installation of gaming equipment purchased outside Florida or in Florida for use on the vessel used in interstate and
foreign commerce to transport persons in interstate and foreign commerce.
Question: Is the purchase of all other tangible personal property purchased in or imported into Florida eligible for the
partial exemption in s. 212.08(8), F.S.?
Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of all
other tangible personal property purchased in or imported into Florida for use on the vessel used in interstate and
foreign commerce to transport persons in interstate and foreign commerce.
Question: Are the purchases of all other nonconsumable or consumable tangible personal property purchased in or
imported into Florida eligible for the partial exemption in s. 212.08(8), F.S.?
Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of all
other nonconsumable or consumable tangible personal property purchased in or imported into Florida for use on the
vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce.
Question: Is the purchase of food and beverage for resale on the ship while in Florida or International waters subject
to the provisions within s. 212.07, F.S.?
Answer: Yes. The resale provisions within s. 212.07, F.S., would apply to the purchase of food and beverages
purchased for resale on the board the vessel.
Question: Are payments made under the 10-year Berthing Agreement with the City subject to tax?
Answer: Pursuant to s. 212.03(6), F.S., payments made under the 10-year Berthing Agreement with the City are
subject to tax. The payments under the 10-year Berthing Agreement do not qualify for the partial exemption in s.
212.08(8), F.S. However, the Department is unable to determine, based on the information supplied with your TAA
request, whether the provisions within s. 212.031(1)(a)8.a., F.S., are applicable.
Question: Are lease payments or the purchase of high speed shuttle vessels used to transport passengers to and
from the vessel while in international waters eligible for the partial exemption provided in s. 212.08(8), F.S.?
Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on lease payments or
purchase of high speed shuttle vessels used to transport passengers to and from the cruise ship while in international
waters.

June 16, 2005

Re: Technical Assistance Advisement No. 05A-029
XXX (Taxpayer)
Sales and Use Tax - Cruises to Nowhere
Sections 212.03(6), 212.031(1)(a)8.a., 212.04, 212.05, 212.07(1)(b), 212.08(8), F.S.
Rule 12A-1.0641, F.A.C.
Dear:
This correspondence is in response to your letter of October 6, 2004, requesting that the Florida Department of
Revenue ("Department") issue a Technical Assistance Advisement ("TAA") pursuant to section 213.22, F.S., and Rule
Chapter 12-11, F.A.C., regarding the taxability of certain activities of a cruise line. An examination of your request and
supporting documentation has established compliance with the requirements for the Department’s issuance of a TAA.
Therefore, the Department hereby grants your request and issues this TAA under the authority of section 213.22, F.S.
Facts
Taxpayer is a XXX corporation with headquarters in ("City"), Florida. Taxpayer operates a gaming and entertainment
ship, which operates out of the XXX ("City"), Florida. Taxpayer was formed for the sole purpose of operating the
gaming and entertainment ship featuring the "cruise to nowhere" concept. Taxpayer was scheduled to begin revenue
producing operations by the end of October 2004.
In March 2003, Taxpayer purchased its ship, "XXX [City]," in a foreign country, and immediately began renovation and
refitting. The ship was delivered to Florida in January 2004.
Taxpayer has secured a ten-year Berthing Agreement with the City, which agreement grants Taxpayer the exclusive
right to dock an entertainment and gaming ship at the XXX.
The ship leaves port each morning at 8:30 a.m. and returns to port the next day at 2:30 a.m., Passengers may board
the ship at 8:30 a.m., before the vessel leaves port, or passengers may board or disembark the ship at anytime
throughout the day via Taxpayer's high-speed shuttle service.
After leaving the XXX every morning, the ship will travel nine nautical miles off the coast of Florida, and it will there
continue cruising or lay anchor, depending on weather conditions.
Taxpayer will offer gaming and entertainment accommodations aboard the ship, as well as renting meeting room
space for businesses.
Taxpayer has provided a sample contract for the rental of its meeting room space and the Berthing and Operational
Agreement with the XXX.

Requested Advisement & Taxpayer Position
Taxpayer requests the Department issue an opinion on the taxable status of the following issues. For convenience,
Taxpayer has categorized the issues under the categories of Receipts and Purchases.
Receipts:

1. Gaming receipts collected while in international waters.
   The Taxpayer has concluded that gaming receipts are not subject to sales tax.
2. Bar and restaurant receipts collected while in international waters
   The Taxpayer has concluded that food or beverages are not subject to sales tax when served, prepared or sold by a
   restaurant operated within the vessel while outside Florida territorial waters.
3. Bar and restaurant receipts collected while in Florida waters
   The taxpayer has concluded that food or beverages are subject to tax when served, prepared or sold by a restaurant
   operated within the vessel while in Florida territorial waters. The tax is to be applied to the gross sale amount. The rate
   applied is the state tax rate of 6% plus any additional county discretionary sales surtax (DSS). The DSS is the
   additional surtax for the county in which the vessel docks. The tax should be separately stated on the receipt provided
   to the guest.
4. Receipts from boarding fees
   The taxpayer has concluded that charges made by foreign registered vessels carrying passengers to international
   waters where passengers cannot disembark from the vessel at points other than the origination point (cruises to
   nowhere) are subject to sales tax.
5. Receipts from rental of meeting room space (sample contract attached)
   The Taxpayer concludes that rental of meeting room space is not subject to tax, since the use of the space occurs
   while outside Florida territorial waters.
   Purchases:
6. The purchase of the ship and if taxable, is it subject to the apportionment factor as provided in s. 212.08(8), F.S.?
   The Taxpayer concludes that they are eligible for the exemption provided in s. 212.08(8), F.S. The vessel will be used
   in interstate and foreign commerce to transport persons in interstate and foreign commerce and is subject to sales
   and use tax to the extent provided in s. 212.08(8), F.S. Since the vessel will not operate in the canals or waterways of
   Florida, the vessel will not have any Florida mileage for calculation of the apportionment factor and therefore no tax is

due.

2. The reconstruction and retrofit of the ship performed out of the country and if taxable, is it subject to the
   apportionment factor as provided in s. 212.08(8), F.S.?
   Taxpayer’s conclusion is the same as above.
3. Gaming equipment purchased and installed out of the country and if taxable, is it subject to the apportionment
   factor as provided in s. 212.08(8), F.S.?
   Taxpayer's conclusion is the same as above.
4. Gaming equipment purchased and installed in Florida and if taxable, is it subject to the apportionment factor as
   provided in s. 212.08(8), F.S.?
   Taxpayer's conclusion is the same as above.
5. The reconstruction and retrofit of the ship performed in Florida and if taxable, is it subject to the apportionment
   factor as provided in s. 212.08(8), F.S.?
   Taxpayer's conclusion is the same as above.
6. The purchase of all other tangible personal property purchased in or imported into Florida and the installation labor
   performed in Florida when the tangible personal property becomes a component part of the ship and if taxable, is it
   subject to the apportionment factor as provided in s. 212.08(8), F.S.?
   Taxpayer's conclusion is the same as above.
7. The purchase of all other nonconsumable tangible personal property purchased in or imported into Florida which is
   used on the ship during the "cruise to nowhere" but does not become a component part of the ship and if taxable, is it
   subject to the apportionment factor as provided in s. 212.08(8), F.S.? (examples include: computers, cash registers,
   tables, chairs, tablecloths, dishes, silver ware, glasses)
   Taxpayer's conclusion is the same as above.
8. The purchase of all other consumable tangible personal property which is used on the ship during the "cruise to
   nowhere" and if taxable, is it subject to the apportionment factor as provided in s. 212.08(8), F.S.? (examples include:
   paper supplies, cleaning supplies, complimentary food and beverages)
   Taxpayer's conclusion is the same as above.
9. The purchase of food and beverages for resale on the ship while in Florida and international waters?

The Taxpayer concludes that food and beverages purchased to prepare and sell for immediate consumption, while in
Florida waterways or outside of Florida waterways, is exempt from sales and use tax.

10. The payments made under the 10-year Berthing Agreement with the XXX (copy of agreement is attached)
    The lease or rental of docking or storage spaces for boats at boat docks or marinas is taxable under s. 212.03(6), F.S.
    However, the Taxpayer concludes that they are eligible for the exemption provided in s. 212.08(8), F.S. The vessel will
    be used in interstate and foreign commerce to transport persons in interstate and foreign commerce and is subject to
    sales and use tax to the extent provided in s. 212.08(8), F.S. Since the vessel will not operate in the canals or
    waterways of Florida, the vessel will not have any Florida mileage for calculation of the apportionment factor and
    therefore no tax is due.
11. Lease payments or the purchase of high speed shuttle vessels used to transport passengers to and from the ship
    while in international waters and if taxable, is it subject to the apportionment factor as provided in s. 212.08(8), F.S.?
    Taxpayer's conclusion is the same as above.
    Applicable Authority
    Section 212.03(6), F.S., provides:
    It is the legislative intent that every person is engaging in a taxable privilege who leases or rents parking or storage
    spaces for motor vehicles in parking lots or garages, who leases or rents docking or storage spaces for boats in boat
    docks or marinas, or who leases or rents tie-down storage spaces for aircraft at airports. For the exercise of this
    privilege, a tax is hereby levied at the rate of 6 percent on the total rental charged.
    Section 212.031(1)(a)8.a., F.S., provides, in part:
    (1)(a) It is declared to be the legislative intent that every person is exercising a taxable privilege who engages in the
    business of renting, leasing, letting, or granting a license for the use of any real property unless such property is:...
    8.a. Property used at a port authority, as defined in s. 315.02(2), exclusively for the purpose of oceangoing vessels or
    tugs docking, or such vessels mooring on property used by a port authority for the purpose of loading and unloading
    passengers or cargo onto or from such a vessel, or property used at a port authority for fueling such vessels, or to the
    extent that the amount paid for the use of any property at the port is based on the charge for the amount of tonnage
    actually imported or exported through the port by a tenant.
    Section 212.05, F.S., provides, in part:
    It is hereby declared to be the legislative intent that every person is exercising a taxable privilege who engages in the
    business of selling tangible personal property at retail in this state....
    (1) For the exercise of such privilege, a tax is levied on each taxable transaction or incident, which tax is due and

payable as follows:
(a)1.a. At the rate of 6 percent of the sales price of each item or article of tangible personal property when sold at
retail in this state, computed on each taxable sale for the purpose of remitting the amount of tax due the state, and
including each and every retail sale.

(b) At the rate of 6 percent of the cost price of each item or article of tangible personal property when the same is not
sold but is used, consumed, distributed, or stored for use or consumption in this state....
(c) At the rate of 6 percent of the gross proceeds derived from the lease or rental of tangible personal property, as
defined herein....
(d) At the rate of 6 percent of the lease or rental price paid by a lessee or rentee, or contracted or agreed to be paid by
a lessee or rentee, to the owner of the tangible personal property.
Section 212.07(1)(b), F.S., provides in pertinent part:
A resale must be in strict compliance with s. 212.18 and the rules and regulations, and any dealer who makes a sale
for resale which is not in strict compliance with s. 212.18 and the rules and regulations shall himself or herself be liable
for and pay the tax. Any dealer who makes a sale for resale shall document the exempt nature of the transaction, as
established by rules promulgated by the department, by retaining a copy of the purchaser's resale certificate....
Section 212.08(8)(a), F.S., provides: "The sale or use of vessels and parts thereof used to transport persons or
property in interstate or foreign commerce is subject to taxes imposed in this chapter only to the extent provided
herein...." The basis of the tax is the ratio of intrastate mileage to interstate or foreign mileage traveled by the vessels
which were used in interstate or foreign commerce and had at least some Florida mileage during the previous fiscal
year. This ratio shall be applied each month to the total Florida purchases which are used in Florida to establish that
portion of the total used and consumed in interstate movement and subject to tax at the applicable rate. Further,
paragraph (c) of the statute provides:
It is the intent of the Legislature that neither subsection (4) nor this subsection shall be construed as imposing the tax
provided by this chapter on vessels used as common carriers, contract carriers, or private carriers, engaged in
interstate or foreign commerce, except to the extent provided by the pro rata formula provided in subsection (4) and in
paragraph (a).
Rule 12A-1.0641, F.A.C., tracks the language of section 212.08(8), F.S., regarding the proration of tax for vessels and
parts thereof used to transport persons or property in interstate or foreign commerce.
The courts have clearly established that, when sales are made extra-territorially, it is beyond the power of the State of
Florida to tax such sales. See Department of Revenue v. Kelly Boat Service, Inc., 324 So.2d 651 (Fla. 1st DCA 1976);
and Department of Revenue v. Pelican Ship Corporation, 257 So.2d 56 (Fla. 1st DCA 1972), cert. denied, 262 So.2d
682.

Read in its entirety and considering its basic purpose, the law is intended to tax as completely within its sphere as
organic provisions allow. L.B. Smith Aircraft Corporation v. Green, 94 So.2d 832, 836 (Fla. 1957). The purpose of the
tax exemption is to prevent Florida from running afoul of the U.S. Commerce Clause by exceeding its powers to tax
interstate or foreign commerce. Taxing cruise to nowhere cruises is not an attempt to regulate or discriminate against
interstate or foreign commerce. See Oklahoma Tax Comm’n v. Jefferson Lines, Inc., 115 S.Ct. 1331 (1995).
In Oklahoma Tax Commission v. Jefferson Lines, Inc., supra, the United States Supreme Court held that Oklahoma's
sales tax on the sale of bus rides through several States did not violate the Commerce Clause. The Court stated in
part:
Here, in contrast, the tax falls on the buyer of the services, who is no more subject to double taxation on the sale of
these services than the buyer of goods would be. The taxable event comprises agreement, payment, and delivery of
some of the services in the taxing State; no other State can claim to be the site of the same combination. The
economic activity represented by the receipt of the ticket for "consumption" in the form of commencement and partial
provision of the transportation thus closely resembles Berwind-White's "delivery of goods within the State upon their
purchase for consumption,"... especially given that full "consumption" or "use" of the purchased goods within the
taxing State has never been a condition for taxing a sale of those goods. Although the taxpayer seeks to discount
these resemblances by arguing that sale does not occur until delivery is made, nothing in our case law supports the
view that when delivery is made by services provided over time and through space a separate sale occurs at each
moment of delivery, or when each State's segment of transportation state-by-state is complete. The analysis should
not lose touch with the common understanding of a sale, ... the combined events of payment for a ticket and its
delivery for present commencement of a trip are commonly understood to suffice for a sale.
In Department of Revenue v. Pelican Ship Corporation, supra, the Florida sales tax on admissions was due on the
$6.00 fee charged to patrons of fishing vessels which was paid at dockside. The court reasoned that even if the fee
was not collected until after the vessel was beyond territorial limits of the State, the obligation to pay such fee arose
when the patron boarded the vessel at dockside and thus the transaction was within the State's taxing jurisdiction.
Also, in the recent Supreme Court case, Department of Revenue vs. New Sea Escape Cruises, Ltd., 894 So.2d 954
(Fla. 2005), the Court ruled that cruises-to-nowhere operations that leave the State of Florida are foreign commerce,
not intrastate, and thus the partial exemption set forth in Section 212.08(8)(a), F.S., should be applied. Additionally,
the Court also held that there is no basis in either the statutes or the Department of Revenue's implementing
regulations to parse a carrier's operations or a vessel's voyages, and deny a carrier who engages in foreign
commerce, as well as intrastate commerce, the partial exemption for its intrastate commerce operations. Therefore,
the court approved the decision to apply the partial tax exemption to cruise-to-nowhere operations, and disapproved
the decision of the First District in Dream Boat, Inc. v. Department of Revenue, 28 Fla. L. Weekly D837 (Fla. 1st DCA
March 27, 2003).
Discussion: Receipts
Gaming Receipts collected while in international waters

Gaming receipts do not come within the purview of Chapter 212, F.S., and are therefore not subject to sales tax,
whether or not the sale occurs outside Florida waters. See Department of Revenue v. Kelly Boat Service, Inc., supra.
Bar and Restaurant receipts collected while in international waters and Bar and Restaurant receipts collected while in
Florida waters.
Where food or beverage is sold to customers, such sales are taxable when sold in Florida waters and are exempt
when sold outside Florida waters. The courts have clearly established that, when sales are made extra-territorially, it is
beyond the power of the State of Florida to tax such sales. See Department of Revenue v. Kelly Boat Service, Inc.,
supra, and Department of Revenue v. Pelican Ship Corporation, supra.
Receipts from boarding fees.
During a cruise to nowhere, the Taxpayer is not engaged in transportation. Sales tax is not imposed on the charge for
transporting a person, since that charge does not come with the statutory definition of an admission, nor is it
specifically enumerated as a taxable service with Chapter 212, Florida Statutes. The line of authority interpreting
section 212.04(1), F.S., stands for the proposition that vessels engaged in cruises to nowhere are not engaged in
transportation, because the charge for admitting a person aboard was determined to be a taxable admission. See
Department of Revenue v. Kelly Boat Service, Inc., supra, and Department of Revenue v. Pelican Ship Corporation,
supra. Unless specifically exempted by the Legislature, all sales of admissions, based on the charge for admitting a
person to a place of amusement, sport, or recreation, are taxable pursuant to s. 212.04, F.S.
Therefore, the charge for a boarding pass or ticket sold to a customer is the price of an admission. Such charge is
within the definition provided in s. 212.02(1), F.S., and is therefore subject to sales tax. See Oklahoma Tax Comm'n v.
Jefferson Lines, Inc., supra.
Receipts from rental of meeting room space.
In this particular transaction, the taxpayer will be renting meeting room space on the vessel during the cruises. As
provided in your letter of October 6, 2004, the customer will sign a contract known as a "Group Sales Booking
Agreement" (copy enclosed), specifying what is included in the rental price. The rental price may only include the
room, or it could include the boarding fee per passenger, food, and beverages and tips. There may also be
cancellation fees in certain circumstances.
A review of the terms within the Group Sales Booking Agreement indicates that under the provisions of "Billing
Arrangements," it provides that the contract is to be executed prior to the vessel leaving the State of Florida and
payment of the estimated contract price must be received 30 days prior to the event.
Since the terms of the agreement are contracted within the State of Florida and payment is made prior to the vessel
leaving the State of Florida, the transaction is deemed to have occurred in this State. Therefore, the receipts from
rental of meeting room space are subject to sales tax, since the transaction would be considered to have occurred
where the combined event of the agreement and payment were made, in this case, both are made in Florida. See

Department of Revenue v. Pelican Ship Corporation, supra.
Discussion: Purchases
Purchase of the Vessel
The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of the vessel used in
interstate and foreign commerce to transport persons in interstate and foreign commerce. See recent Florida Supreme
Court case, Department of Revenue vs. New Sea Escape Cruises, Ltd., supra.
Reconstruction and Retrofit of Vessel Performed Out of the Country or in Florida
The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the reconstruction and retrofit of the
vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. See recent
Florida Supreme Court case, Department of Revenue vs. New Sea Escape Cruises, Ltd., supra.
Gaming Equipment Purchased and installed Out of the Country or in Florida
The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase and installation of
gaming equipment purchased outside Florida or in Florida for use on the vessel used in interstate and foreign
commerce to transport persons in interstate and foreign commerce. See recent Florida Supreme Court case,
Department of Revenue vs. New Sea Escape Cruises, Ltd., supra.
Purchase of all Other Tangible Personal Property Purchased in or Imported Into Florida
The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of all other tangible
personal property purchased in or imported into Florida for use on the vessel used in interstate and foreign commerce
to transport persons in interstate and foreign commerce. See recent Florida Supreme Court case, Department of
Revenue vs. New Sea Escape Cruises, Ltd., supra.
Purchase of all Other Nonconsumable or Consumable Tangible Personal Property Purchased in or Imported Into
Florida
The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of all other
nonconsumable or consumable tangible personal property purchased in or imported into Florida for use on the vessel
used in interstate and foreign commerce to transport persons in interstate and foreign commerce. See recent Florida
Supreme Court case, Department of Revenue vs. New Sea Escape Cruises, Ltd., supra.
Purchase of Food and Beverages for Resale on the Ship While in Florida or International Waters
The resale provisions within s. 212.07, F.S., would apply to the purchase of food and beverages purchased for resale
on the board the vessel.

Payments made under the 10-year Berthing Agreement with the City
Pursuant to s. 212.03(6), F.S., payments made under the 10-year Berthing Agreement with the City are subject to tax.
The payments under the 10-year Berthing Agreement do not qualify for the partial exemption in s. 212.08(8), F.S.
However, the Department is unable to determine, based on the information supplied with your TAA request, whether
the provisions within s. 212.031(1)(a)8.a., F.S., are applicable. Section 212.03(1)(a)8.a., F.S., provides an exemption
for property used at a port authority, as defined in s. 315.02(2), F.S., exclusively for the purpose of oceangoing
vessels or tugs docking, or such vessels mooring on property used by a port authority for the purpose of loading and
unloading passengers or cargo onto or from such a vessel, or property used at a port authority for fueling such
vessels, or to the extent that the amount paid for the use of any property at the port is based on the charge for the
amount of tonnage actually imported or exported through the port by a tenant. XXX, as of the date of this advisement,
has not created a port authority.
Lease Payments or the Purchase of High Speed Shuttle Vessels Used to Transport Passengers to and from the
Vessel While in International Waters
The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on lease payments or purchase of high
speed shuttle vessels used to transport passengers to and from the cruise ship while in international waters. See
recent Florida Supreme Court case, Department of Revenue vs. New Sea Escape Cruises, Ltd., supra.
Conclusion
Pursuant to the recent Florida Supreme Court case, Department of Revenue vs. New Sea Escape Cruises, Ltd., 894
So.2d 954 (Fla. 2005), the taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., to the extent
provided above.
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 backup documents are public records under
Chapter 119, F.S., and are subject to disclosure to the public under the conditions of section 213.22, F.S. Confidential
information must be deleted before public disclosure. In an effort to protect confidentiality, we request you provide the
undersigned with an edited copy of your request for Technical Assistance Advisement, the backup material and this
response, deleting names, addresses and any other details, which might lead to identification of the taxpayer. Your
response should be received by the Department within 15 days of the date of this letter.
Sincerely,
Vicki Allen

Tax Law Specialist
Technical Assistance & Dispute Resolution
Control No: 61791