Were entry fees for educational exhibits at a Florida university-owned museum taxable admissions?

Plain-English summary

Florida ruled that a university-owned museum had to collect sales tax on patron entry fees for its educational exhibitions.

The museum charged for a self-sustaining permanent exhibit and for leased temporary exhibits produced by other museums or private companies. The fees paid operating, staffing, rental, shipping, insurance, and future exhibit costs.

Admissions include payments to enter exhibitions. A former exemption for qualifying government-sponsored exhibits had been repealed effective July 1, 2009. The remaining university exemption applied when only student and faculty talent was used, but the museum confirmed that its exhibits did not meet that condition.

The museum's educational purpose and use of revenue to cover costs did not create another exemption. All charges for admission to the described exhibits were taxable.

What this means for you

Government or university ownership does not automatically exempt admissions. Verify the specific event, talent, sponsorship, and effective-date requirements of the applicable exemption.

Common questions

Did educational purpose make the fees exempt? No.

Why did the university exception fail? The exhibits did not use only faculty and student talent.

When had the broader exemption ended? July 1, 2009.

Citations and references

• Fla. Stat. §§ 212.02 and 212.04, as quoted and discussed in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 09A-061

Original ruling text

SUMMARY
Question: Are certain entry fees, charged by a Florida university, taxable admissions
under Section 212.04, F.S.
Answer: Yes. Payments made by museum patrons, to the museum, are subject to tax.
November 23, 2009
XXX
Re:

Technical Assistance Advisement 09A-061
Taxability of Entry Fees at the XXX
Sales and Use Tax
Subsections 212.02(1) and 212.04(2)(a)1., Florida Statutes (F.S.)
XXX (“the Taxpayer”)
FEI #: XXX

Dear XXX:
This is in response to your letter dated October 28, 2009, received by this office on
October 30, 2009, requesting this Department’s issuance of a Technical Assistance
Advisement (“TAA”) pursuant to Section 213.22, F.S., and Rule Chapter 12-11, Florida
Administrative Code (F.A.C.), regarding the taxability of certain fees charged for entry
into exhibitions presented by the Taxpayer. An examination of your letter has established
that you have complied with the statutory and regulatory requirements for issuance of a
TAA. Therefore, the Department is hereby granting your request for a TAA.
ISSUE
The issue is whether certain entry fees charged by the Taxpayer represent taxable
admissions under Section 212.04, F.S.
FACTS
Your letter provides, in part, the following:
On June 30, 2009, the sun set on [subsection 212.04(2)(a)2.b., F.S.),] which
exempted the XXX from collecting sales tax on admissions to certain exhibits.
The museum operates a XXX exhibition which was mandated to be selfsustaining given the fact that no funds from state, federal or local government
were available for operation. We began charging an admission fee when the
exhibit opened a little over five years ago. The operational cost of the exhibit is
budgeted at just over $540,000 this fiscal year with the funds earmarked for all
operational costs including staff, live stock (butterfly pupai shipped from around
the world.), marketing, plant material and other basic expenses. Any excess funds

Technical Assistance Advisement
Page 2 of 4

at the end of the year are transferred to the XXX to support collections and
research.
The Museum also brings in leased exhibits produced by other Museums or private
companies which are educational in nature. They range in size from 3000 to 6000
square feet and are typically costly to rent and involve substantial shipping fees as
well as insurance. The admission fees are charged to recover the costs of bringing
“mission related,” engaging, educational exhibits into the Museum serving the
nearly 200,000 visitors we serve each year. Given the fact that the State of
Florida’s financial crisis has caused us to reduce our funding by nearly $1.5
million over the last two years we no longer have funds available to support the
aforementioned temporary exhibit program so we must charge an admission and
seek sponsorships to continue this important program. I would also mention that
some salaries are paid in part or in full from these revenues for positions
supporting the temporary exhibit program. Any excess funds are placed into an
auxiliary account and utilized to make prepayments on exhibits once contracts are
signed for future temporary exhibitions. We are currently booked through the
summer of 2011.

I would like to formally request a Technical Assistance Advisement letter or
ruling on whether the definition of the term “admissions” under 212.02(1) applies
to our institution for the use of educational exhibits which I have described.
You also indicated, telephonically, to this office, that in no event does the Taxpayer
exclusively use faculty and or student talent with regard to the creation, set up or
production of the subject exhibits.

TAXPAYER POSITION
Your request provides, in part, the following:
Following significant research, I discovered that out of a list of 420 non-profit
museums, zoos, and aquariums across the State of Florida, it appears that only
four (4) institutions are subject to collecting a sale tax under the provisions of
statute 212.04. My master list was obtained form the Florida Association of
Museums. This is caused solely by the nature of our ownership as university,
college or community college or community college institutions. I would note
that the other three are the XXX, XXX, XXX and XXX and the XXX, XXX.
Mandating that our visitors pay a sales tax to use these educational exhibitions
while exempting 416 others across the State of Florida would appear to be a
discriminatory practice.

Technical Assistance Advisement
Page 3 of 4

APPLICABLE STATUTES
Subsection 212.04(1)(a), F.S., provides, “. . . every person 1 is exercising a taxable
privilege who sells or receives anything of value by way of admissions.” The term,
“admissions,” is defined, in part, in Subsection 212.02(1), F.S., as follows:
The term “admissions” means and includes the net sum of money after deduction
of any federal taxes for . . . entering or staying in any place of amusement, sport,
or recreation, including, but not limited to, theaters, outdoor theaters, shows,
exhibitions . . . .“ (Emphasis supplied)
Subsection 212.04(2)(a)1., F.S., provides tax is not due on admissions to events
sponsored by universities, “. . . when only student, faculty, . . . talent is used.” 2
Prior to July 1, 2009, Florida Statutes provided an exemption from tax for admissions to
exhibits sponsored by a governmental entity 3 , so long as 100 percent of the risk of
success or failure was with the government sponsor.
RESPONSE
The current statutory framework does not provide an exemption from tax regarding
payments made for the privilege of entering an exhibit sponsored by the Taxpayer. The
museum is owned and operated by the university and is, accordingly, a “person” as
defined by Florida Statutes. Payments made by museum patrons, to the museum, for the
privilege of entering exhibits, are subject to sales and use tax (absent any exemption to
the contrary). You have indicated the exhibits are not the result of exclusive faculty and
student talent, and, Subsection 212.04(2)(a)1., F.S., cannot apply. Further, as you point
out in your request, Subsection 212.04(2)(a)2.b., F.S., was repealed July 1, 2009.
Therefore, the Taxpayer is not afforded the exemption for sponsoring the subject exhibits,
by virtue of assuming 100 percent of the risk of the venture. The Taxpayer must collect
sales and use tax on all charges for admission to the aforementioned exhibits.
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
1

The term, person, is defined in Section 212.02(12), F.S., to include any political subdivision.
You have indicated, in your request and telephonically, that he museum does not exclusively use faculty
and student talent with regard to the subject exhibits.
3
Subsection 212.04(2)(a)2.b., F.S.
2

Technical Assistance Advisement
Page 4 of 4

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,

R. Clay Brower
Revenue Program Administrator
Technical Assistance and Dispute Resolution
(850) 922-4837
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