Are guided bus, walking, and sailing sightseeing tours taxable admissions in Florida?

Plain-English summary

The guided bus tour was a taxable admission. Customers primarily paid for the guide's continuous stories and sightseeing experience, returned to the point of origin, and disembarked only once. The Department found that entertainment was the tour's main purpose and any transportation was incidental.

The sailing tour was taxable for the same reason, with an even clearer fact: passengers did not disembark during the tour. Because the taxpayer collected the sailing-tour admission price for the boat operator, it had to collect and remit the tax unless it obtained and used the agency documentation described in Rule 12A-1.005(1)(c)2.

The walking tour was different. It took place entirely in public areas, and the seller could not stop nonpaying members of the public from following the group. Because the seller did not control access to any place, the charge was not an admission and was not subject to admissions tax.

What this means for you

Florida distinguished entertainment from transportation by looking at the tour's primary purpose and practical operation. A brief stop did not convert a round-trip guided sightseeing experience into transportation. Access control separately mattered for the walking tour.

Common questions

Was the bus tour taxable even though riders got off once? Yes. The single stop was incidental to the guided entertainment experience.

Was the walking tour taxable? No. It remained on unrestricted public property, and nonpaying people could follow it.

Who handled tax on the sailing-tour admissions? The taxpayer collecting the admissions had to collect and remit tax unless it satisfied the cited rule's agency procedure.

Citations and references

• Fla. Stat. §§ 212.02(1) and 212.04(1), (6); Fla. Admin. Code r. 12A-1.005(1)(c)2. and (3)(l); and Department of Revenue v. Pelican Ship Corp., 257 So. 2d 56 (Fla. 1st DCA 1972), as cited in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 09A-054

Original ruling text

SUMMARY
QUESTION: Whether Taxpayer’s bus tours are an admission to a place of
entertainment or amusement.
ANSWER: Yes. The primary purpose of Taxpayer’s tours was entertainment because
persons paying for the tour were mostly interested in the stories provided by the guide.
The disembarking was therefore only incidental.
October 29, 2009
XXX
Subject: Technical Assistance Advisement 09A-054
Sales and Use Tax
Admissions-Tours
XXX, Petitioner (Taxpayer)
FEI#: XXX
XXX (“City”)
XXX (“Tour”); XXX (“Stop”)
(“Boat Operator”)
Section 212.04(1), F.S.; Section 212.02(1), F.S.
Rule 12A-1.005(1)(c) and (3)(l), F.A.C.
Dear XXX:
This letter is a response to your petition dated May 15, 2009, 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 1211, F.A.C. This response to your request constitutes a TAA and is issued to you under
the authority of s. 213.22, F.S.
FACTS
Taxpayer provides a walking Tour and a riding Tour of various locations in City.
The Department’s local service center has determined that the Taxpayer’s walking
and riding Tours are for entertainment purposes, allowing those paying for the
walking and riding Tour to hear stories associated with the various landmarks in
City. The persons paying for the Tours are normally returned to the origination
point. In addition, the service center determined that the main intent of
Taxpayer’s business was not to shuttle passengers between destinations for
shopping, dining, or other activities.
The riding Tour is on a bus in City. Both the walking Tour and the riding Tour
include a guide. The guides provide continuous commentary, with stories and
other information regarding various landmarks and locations within City. The

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request provides that the Taxpayer’s customers are primarily paying for the
guide’s stories.
As to the walking tours, there is no set route. The tours are in areas accessible by
the public without a fee. Taxpayer has no control of the public tagging along with
the walking Tour. The walking Tour is for 45 minutes.
The riding Tour is done only in the evening. It begins from a specific origination
point; a specific route is followed, with several stops with as part of the tour. The
bus ride is only on areas accessible by the public. The ride is for 60-75 minutes,
with later rides lasting longer. Unlike the walking Tour, the Taxpayer can restrict
persons not paying for the riding Tour from entering or staying on the bus.
Passengers disembark one time at the Stop, for up to thirty minutes. If there are
any other stops for additional stories, there is no disembarking from the tour bus.
Stories and commentary are provided during the entire tour.
The sailing Tour is performed by Boat Operator. Taxpayer pays to Boat Operator
admission prices collected by Taxpayer for Boat Operator’s admissions.
Taxpayer provides a guide and is paid a commission per passenger by Boat
Operator.
TAXPAYER’S POSITION
The tours are not taxable admissions, even though the tours start at and return to
the same origination point, because on the tour the ticket holders are allowed to
leave the trolley to take photos and view the sights. Due to the disembarking of
ticket holders, the activity is for transportation, as provided by Rule 12A1.005(3)(l), F.A.C.
APPLICABLE STATUTES AND RULES
Section 212.04(1) and (6), F.S., provide in part:
(1)(a) It is hereby declared to be the legislative intent that every person is
exercising a taxable privilege who sells or receives anything of value by
way of admissions.
(b) For the exercise of such privilege, a tax is levied at the rate of 6
percent of sales price, or the actual value received from such admissions,
which 6 percent shall be added to and collected with all such admissions
from the purchaser thereof, and such tax shall be paid for the exercise of
the privilege as defined in the preceding paragraph. Each ticket must show
on its face the actual sales price of the admission, or each dealer selling
the admission must prominently display at the box office or other place
where the admission charge is made a notice disclosing the price of the
admission, and the tax shall be computed and collected on the basis of the

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actual price of the admission charged by the dealer. The sale price or
actual value of admission shall, for the purpose of this chapter, be that
price remaining after deduction of federal taxes and state or locally
imposed or authorized seat surcharges, taxes, or fees, if any, imposed upon
such admission….

(6) Admission taxes required to be paid by this chapter shall be paid to
the department by the owner or the collector of such admission….
(Emphasis added)
Section 212.02(1), F.S., provides in part:
(1) 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,
including, but not limited to, theaters, outdoor theaters, shows, exhibitions,
games, races, or any place where charge is made by way of sale of tickets,
gate charges, seat charges, box charges, season pass charges, cover
charges, greens fees, participation fees, entrance fees, or other fees or
receipts of anything of value measured on an admission or entrance or
length of stay or seat box accommodations in any place where there is any
exhibition, amusement, sport, or recreation ….
Rule 12A-1.005(1)(c)2. and (3)(l), F.A.C., provide:
(1)(c) 2. An agent who collects admissions on behalf of a principal may
forward the collected tax funds to the principal to be remitted by the
principal to the Department. Both the principal and agent can be held
liable for any failure to timely remit such tax funds to the Department. An
agent shall not, however, be liable for its principal's failure to timely remit
tax funds to the Department if the agent has obtained the principal's active
Florida sales tax number and has disclosed in writing to the principal that
when such agent remits proceeds from the sale of an admission to the
principal the proceeds may include amounts that represent admissions tax
and that it is the principal's obligation to timely remit any taxes due and
owing to the Department or other taxing authority.

(3)(l) Charges measured on an admission or entrance or length of stay for
rides on helicopters, sightseeing trolley cars, sightseeing buses or trains, or
any sightseeing or amusement ride where the participant is normally
returned to the origination point are taxable. This does not apply to charter
or regularly scheduled aircraft, bus, taxi, trolley, or train travel where the
passengers may disembark for shopping, dining, or other activities at
points other than the origination point. (Emphasis added)

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RESPONSE
The amounts received from bus tours are taxable as admissions, pursuant to
Section 212.04, F.S., as implemented, in part, by Rule 12A-1.005(3)(l), F.A.C.
The term "admissions" is defined in section 212.02(1), F.S., in part, as "... the net
sum of money... for admitting a person... to any place of amusement, sport, or
recreation ...." The bus tour is a place of amusement or recreation. See
Department of Revenue v. Pelican Ship Corporation, 257 So.2d 56 (Fla. 1DCA
1972). In that case, the Court held that sums charged passengers by a "party"
fishing vessel operator for transporting them 20 to 30 miles into the Atlantic
Ocean to a reef where they may fish was an admission charge subject to sales tax.
The first sentence of Rule 1.005(3)(l), F.A.C., describes a taxable admission. It
specifically states that sightseeing buses, "where the participant is normally
returned to the origination point are taxable." (Emphasis added). This sentence
refers to rides provided with the purpose of supplying amusement or recreation to
ticket purchasers. Such rides begin and end at the same location. The second
sentence, however, describes transportation. This sentence refers to rides that
ticket purchasers take with the sole purpose, or main purpose, of getting from one
location to a final destination.
The bus tours are not primarily for transportation, because the purpose of the
riding Tour is to entertain tour purchasers (visitors) within City, to provide them
with a complete sightseeing tour that includes stories and stops at various
locations, and not to transport them from one location to a final different
destination. The fact that visitors are "transported" from one location to another
on the bus is incidental to the main purpose of providing amusement or recreation
for visitors with the stories while on the bus.
The Court in Department of Revenue v. Pelican Ship Corporation, supra, at 57,
stated:
The contention that the $6.00 fee is a charge for mere transportation to and
from the fishing reef ignores the reality that the passengers taking the trip
for purposes other than engaging in fishing sport do so for whatever
recreational benefits the passenger experiences from the ride itself.
(Emphasis added).
The riding Tour purchase price admits a person to a place of amusement or recreation.
Visitors embark at the commencement point of the riding Tour and disembark the bus at
the original point at the end of the riding Tour. During the riding Tour, visitors are
entertained with stories provided by the guide, describing the different points of interests
along the route. Visitors may disembark one time at the Stop, but they remain on the bus
for the remainder of the stops. As in Department of Revenue v. Pelican Ship Corporation,
the claim, that the bus tour ticket fee is only for transportation, disregards the reality that

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visitors taking the riding Tour, other than to get off once at the Stop, do so for "whatever
recreational benefits the visitor experiences from the ride itself."
In fact, here, the facts that this is an admission are stronger than in Department of
Revenue v. Pelican Ship Corporation. While in Department of Revenue v. Pelican Ship
Corporation, passengers taking the trip for purposes other than to fish may or may not get
recreational benefits from the trip, here, the stories provided by the guides, explaining the
sites as the riding Tour proceeds, increase the likelihood that visitors are obtaining
recreation and amusement from the riding Tour itself. In fact, here, visitors are clearly
purchasing the riding Tour with an expectation of getting an admission to a complete
sightseeing experience that includes several stops along the way.
In the present case, while the riding Tour allows visitors to disembark once, its primary
purpose is to provide amusement or recreation in the form of a tour, with Taxpayer’s
guides providing stories of various locations in City. Here, the facts provide that the
Tour varies as to the amount of time passengers disembark for the different rides within a
given night. Unlike regularly scheduled transportation rides, the length of the ride here
varies even in the same day for the same route. Therefore, the rides do not provide for
regularly scheduled disembarking but are more leisurely, done so consistent to the main
purpose of entertainment and amusement. Also, unlike the walking Tour, the Taxpayer
may restrict access to the bus. Therefore, the charges to the riding Tour are to a place of
amusement or recreation, and are subject to sales tax as admissions. As such, the tax
must be collected on the charges from riding Tours.
As to the Taxpayer’s walking Tour, the charge is not for an admission, because the facts
provided indicate that the Tour is completely conducted on public property, and members
of the public who do not pay for the tour may follow the Taxpayer’s group at no charge,
because the Taxpayer does not control access to the areas where the Tour is conducted.
Taxpayer and Tour participants are not allowed into any areas with access restricted in
any manner, unlike the riding Tour on a bus. Therefore, Taxpayer is not required to
collect the tax on the walking Tour.
As to the sailing Tour, the facts are essentially similar to the riding Tour, and the charges
are taxable admissions. In fact, with the sailing Tour the passengers do not disembark
during the Tour. As such, the charge is for an admission, based on the reasons provided
herein regarding the riding Tour.
Taxpayer must collect tax on the admission charges from the sailing Tour, because
Taxpayer is a collector of the admission. See section 212.04(6), F.S. Taxpayer is acting
as an agent for Boat Operator and must comply with the provisions of Rule 12A1.005(1)(c)2., F.A.C., which require the Taxpayer to remit the tax, unless the affidavit
provided for by the Rule is obtained. No facts were provided to demonstrate the affidavit
was obtained. Taxpayer is therefore required to collect and remit the tax on the
admissions collected for Boat Operator in such event.
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

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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 10 days of the date of this letter.
Sincerely,

Charles Wallace
Senior Attorney
Technical Assistance and Dispute Resolution
(850) 922-4734

CW/
Record ID: 65104