Were a county's charges to private users and vendors for firing-range space subject to Florida sales tax?

Plain-English summary

A governmental entity operated a training range and considered opening it to private industry. Users signed a license and hold-harmless agreement and paid for access to firing areas, tactical-training facilities, a driving pad, an obstacle course, a rappel tower, classrooms, and other space. Vendors also paid daily charges for space.

Florida treated the charges as licenses to use real property, not merely admissions. The agreement expressly granted a license to occupy and use the facility, bringing the charges under section 212.031. The governmental exemption for sales made to government did not exempt sales or leases made by the governmental entity to private users.

The entity had to register as a dealer, report the taxable transactions, remit collected tax by the statutory deadline, and keep records adequate to determine the tax due. Vendor-space charges were taxable and reportable for the same reason.

What this means for you

A public owner does not automatically make private access charges exempt. When an agreement grants private parties the right to occupy or use government-owned real property, Florida can treat the payment as a taxable real-property license.

Common questions

Were the range charges treated as admissions? No. Florida relied on the agreement's express license-to-occupy-and-use language and treated them as real-property license fees.

Did the governmental exemption apply? No. The ruling says the exemption covered sales made to governmental entities, not sales or leases made by them.

Were vendor-space charges taxable? Yes. Vendors also received a license to use real property.

Did the county have to register and file returns? Yes. It had to register as a dealer and file and remit for taxable transactions under the cited provisions.

What records were required? Suitable records of taxable sales, leases, rentals, license fees, admissions, or purchases, plus other books needed to determine the tax due.

Citations and references

• Fla. Stat. § 212.02(10)(i) (license to use or occupy real property)
• Fla. Stat. § 212.031(1) (tax on granting a license to use real property)
• Fla. Stat. § 212.08(6) (governmental purchases exemption)
• Fla. Stat. §§ 212.11(1)(b), 212.12(6)(a), 212.18(3)(a) (returns, records, and registration)
• Fla. Stat. § 213.22 (Technical Assistance Advisements)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 07A-010

Original ruling text

SUMMARY
QUESTION: Are the charges to use the county’s firing range subject to tax? If so, what
are the reporting and record keeping requirements?
ANSWER – Based on Facts Below: The License and Hold Harmless Agreement clearly
describes a license to use the facility. Section 212.031(1)(a), Florida Statutes, imposes tax
on the granting of a license to use real property. The reporting and record keeping
requirements for the county are the same as for any dealer.

April 2, 2007
Re:
Technical Assistance Advisement 07A-010
Sales and Use Tax – Firing Range
Sections: 212.02, 212.031, 212.06, 212.08, 212.11, 212.12, 212.18, F.S.
Petitioner: XXX(herein “XXX Entity”)
FEI: XXX
Dear :
This letter is a response to your petition dated January 18, 2007, for the Department’s issuance of a
Technical Assistance Advisement (“TAA”) concerning the above referenced party and matter.
Your petition has been carefully examined and the Department finds it to be in compliance with the
requisite criteria set forth in Chapter 12-11, Florida Administrative Code. This response to your
request constitutes a TAA and is issued to you under the authority of s. 213.22, Florida Statutes.
FACTS
Your petition sets forth the following information:
[Governmental Entity] currently operates and maintains [XXX] (Range).... [Governmental
Entity] is researching the possibility of opening the XXX to private industry. . . .

The XXX currently offers the following activities on a per use basis . . . . Each participant
is required to sign a “[License and] Hold Harmless Agreement” prior to participation.
(1) Nine outdoor XXX, one indoor XXX and one shoot house for 360 degree XXX. Each
participant brings his or her own certified XXX instructor. Each range with the exception
of two are priced on a per day rate. The XXX and the XXX house are priced in four hour
increments. A supplies charge at cost is applicable when onsite XXX and cardboard targets
are used by participants.

Technical Assistance Advisement
Page 2

(2) A stationary full scale aircraft (727) used for airplane tactical related training. There is
a per day access charge.
(3) A four acre driving pad. Participants are responsible for bringing their own car. There
is a per day access charge.
(4) Physical assessment test obstacle course. Charges are based on four hour blocks of
time.
(5) An eighty foot rappel tower. There is a per day access charge.
(6) Classrooms. There is a per day access charge or free with use of XXX.
(7) XXX. The machines are owned and operated by a distributor. The Range receives a
commission.
(8) Vendor space. Vendors include suppliers of equipment used by participants of the
Range. There is a per day charge.
Included with the petition is a copy of the License and Hold Harmless Agreement. According to
the terms of the Agreement, the Governmental Entity grants to the Licensee “a license to occupy
and use” the Practical Training Site. See Term 1. The XXX “may be occupied and used by the
LICENSEE as a training facility to conduct firearms training and other related training activities”
on mutually agreed days and dates. See Term 2. “For the license granted by this Agreement, the
LICENSEE will pay the [XXX] . . . for each day the premises are used for training.” See Term 3.
The License Agreement contains various other terms, none of which are relevant to the discussion
of the applicability of tax to the transactions.

REQUESTED ADVISEMENT
The petition poses the following questions:

1. Are the charges imposed to use the Range considered Admissions?
2. Are transactions with private industry . . . exempt from sales and use tax?
3. Are transactions with private industry . . . required to be reported to the Florida
   Department of Revenue?
4. Is [Governmental Entity] required to register with the Department of Revenue?
5. Are charges imposed on vendors reportable or taxable?
6. What records should be kept for the transactions described in the facts?
   DETERMINATION
   1.

Are the charges imposed to use the Range considered Admissions?

Technical Assistance Advisement
Page 3

The License and Hold Harmless Agreement clearly describes a license to use the facility. Section
212.02(10)(i), Florida Statutes, defines the term “license,” with reference to the use of real
property, as “the granting of a privilege to use or occupy a building or parcel of real property for
any purpose.” The License and Hold Harmless Agreement contains language specifying that the
purpose of the agreement is to grant to the licensee a “license to occupy and use” the facility. The
Governmental Entity is granting the vendors a license to use the real property.
2.
tax?

Are transactions with private industry for the use of the range exempt from sales and use

No. Section 212.031(1)(a), Florida Statutes, imposes tax on the granting of a license to use real
property. While section 212.08(6), Florida Statutes, grants an exemption for sales made to
governmental entities, there is no exemption for sales or leases made by governmental entities.
3.
Are transactions with private industry required to be reported to the Florida Department of
Revenue?
Yes. Tax returns must be filed, and the tax collected remitted on or before the 20th day of the
month for all transactions subject to tax that occurred in the preceding calendar month. See Section
212.11(1)(b), Florida Statutes.
4.

Is Governmental Entity required to register with the Department of Revenue?

Yes. Section 212.18(3)(a), Florida Statutes, requires that everyone that grants licenses in real
property file “an application for a certificate of registration” with the Department of Revenue.
Governmental Entity meets definitions of “dealer” found in section 212.06(2)(i) and (j), Florida
Statutes. Governmental Entity is a “county, municipality, any political subdivision, agency, bureau
or department, or other state or local governmental instrumentality.” See Section 212.06(2)(i),
Florida Statutes. Governmental Entity “grants a license to use, occupy or entire upon . . . real
property.” See Section 212.06(2)(j), Florida Statutes
5.

Are charges imposed on vendors reportable or taxable?

Yes. Although the question was not specifically posed, Governmental Entity is granting the
vendors a license to use real property. The granting of a license to use real property is subject to
tax, and it must be reported to the Department of Revenue. See Sections 212.031(1), 212.11(1)(b),
Florida Statutes.
6.

What records should be kept for the transactions described in the facts?

Governmental Entity should “keep and preserve suitable records of the sales, leases, rentals, license
fees, admissions, or purchases, as the case may be, taxable under this chapter; such other books of
account as may be necessary to determine the amount of tax due hereunder.” See Section
212.12(6)(a), Florida Statutes.

Technical Assistance Advisement
Page 4

This response constitutes a Technical Assistance Advisement under Section 213.22, Florida
Statutes, 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, Florida Statutes. 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, your request and related backup documents are public
records under Chapter 119, Florida Statutes, and are subject to disclosure to the public under the
conditions of s. 213.22, Florida Statutes. 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,
Sara D. Faulkenberry
Senior Tax Specialist
Technical Assistance and Dispute Resolution
Record ID: 28167