Were a state-university museum's paid exhibit admissions exempt from Florida admissions tax beginning July 1, 2010?

Plain-English summary

A Florida state university operated a museum with a free permanent collection and paid visiting exhibitions and a living-rainforest exhibit. The university alone operated the museum and bore all success, failure, and funds at risk.

Florida ruled that admission charges were exempt beginning July 1, 2010. The university qualified as a governmental entity, and the exhibits did not exclusively use faculty or student talent.

The ruling notes that this governmental-event exemption had expired July 1, 2009 and was reenacted by 2010 legislation effective July 1, 2010.

What this means for you

Government ownership alone did not complete the test. The sponsor also had to bear all event risk and funds and avoid an event using exclusively student or faculty talent.

Common questions

When did the exemption apply? Beginning July 1, 2010.

Who bore the museum's financial risk? The state university.

Did the exhibitions use only faculty or students? No.

Citations and references

• Fla. Stat. §§ 212.02, 212.04, 1001.705, 1001.72, and 1004.56 and Chapter 2010-147, § 6, Laws of Florida, as listed or discussed in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 10A-032

Original ruling text

SUMMARY
QUESTION: Are the admission charges imposed by the Museum exempt from tax
pursuant to section 212.04(2)(a)2.b., F.S?
ANSWER – Based on the Facts Below:
The Museum is owned and operated by the Taxpayer and is, accordingly, an “agenc[y] of the
state which belong[s] to and [is] part of the executive branch of state government,” as provided
in section 1001.705(1)(a)4., F.S. 100 percent of the risk of success or failure is with [the
Taxpayer] and 100 percent of the funds at risk with respect to the Museum belong to [the
Taxpayer]. The Museum does not exclusively use faculty and/or student talent with regard to
any of the exhibitions it presents. Therefore, the admission charges imposed by the Museum are
exempt from tax pursuant to section 212.04(2)(a)2.b., F.S., effective July 1, 2010.
June 29, 2010
XXX
Re:

Subject: Technical Assistance Advisement (TAA) 10A-032
Sales and Use Tax – Admissions
Sections 212.02, 212.04, 1001.705, 1001.72, and 1004.56, Florida Statutes (F.S.)
XXX (“Taxpayer”)
FEI # XXX

Dear XXX:
This is in response to your letter dated June 1, 2010, requesting this Department’s issuance of a
Technical Assistance Advisement (“TAA”) pursuant to section 213.22, F.S., and Rule Chapter
12-11, F.A.C., concerning the taxability of admission charges imposed by the XXX (the
Museum). An examination of your letter has established you have complied with the statutory
and regulatory requirements for issuance of a TAA. Therefore, the Department is hereby
granting your request of a TAA.
Facts
Your letter provides in part:
Pursuant to Section XXX, F.S., the Museum is located at and operated by [the Taxpayer].
The Museum sponsors Exhibitions which fall into three general categories:

1. Permanent Collection: This category consists of thousands of items which are
   available for display and which focus generally on Archaeology, Ethnography, Fossils
   and Natural Resources. Items in these collections are rotated periodically and are used to
   focus on various Exhibit themes. There is no admission charge for viewing the Exhibit

Technical Assistance Advisement
Page 2 of 4
displays comprising the Permanent Collection.

2. Visiting Exhibitions: The Museum periodically brings Exhibits produced by other
   museums or private parties which are educational in nature for display in the Museum.
   These Exhibits are leased by the Museum for various periods of time and then returned to
   their owner. In addition to the rental charge, the Museum pays for the shipping and
   insurance of these Exhibits. The Visiting Exhibitions are on display in a discrete area of
   the Museum and an admission fee is charged to view these Exhibits.
3. XXX: This portion of the Museum is a living rainforest in which live butterflies and
   tropical foliage create a natural living Exhibit. In addition, there are extensive collections
   or butterfly and moth specimens, photographs and movie presentations available for
   viewing. An admission fee is charged to view the XXX.
   [The Taxpayer] is an instrumentality of the State of Florida. Fla. Const., art. IX, sec.7(b);
   Section 1001.72, F.S. [The Taxpayer] is the sole operator of the Museum and 100
   percent of the risk of success or failure is with [the Taxpayer]. In addition, 100 percent
   of the funds at risk with respect to the Museum belong to [the Taxpayer].
   The Museum does not exclusively use faculty and/or student talent with regard to any of
   the exhibitions it presents.

Requested Advisement
You request an advisement that determines that the admission charges imposed by the Museum
are exempt from tax pursuant to section 212.04(2)(a)2.b., F.S.
Applicable Authority
Section 212.02(1), F.S., provides the following in part:
(1) 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
....
Section 212.04(2)(a)2.b., F.S., provides the following:
b. No tax shall be levied on admission charges to an event sponsored by a governmental
entity, sports authority, or sports commission when held in a convention hall, exhibition
hall, auditorium, stadium, theater, arena, civic center, performing arts center, or publicly
owned recreational facility and when 100 percent of the risk of success or failure lies

Technical Assistance Advisement
Page 3 of 4
with the sponsor of the event and 100 percent of the funds at risk for the event belong to
the sponsor, and student or faculty talent is not exclusively used. . . .
Section 1001.705(1)(a)4., provides the following in part:
“State university” or “state universities” as used in the State Constitution and the Florida
Statutes are agencies of the state which belong to and are part of the executive branch of

state government. This definition of state universities as state agencies is only for the
purposes of the delineation of constitutional lines of authority. Statutory exemptions for
state universities from statutory provisions relating to state agencies that are in effect on
the effective date of this act remain in effect and are not repealed by virtue of this
definition of state universities.
Section 1001.72, F.S., provides in part:
(1) Each board of trustees shall be a public body corporate by the name of “The (name of
university) Board of Trustees,” with all the powers of a body corporate . . . .
(2) The corporation is constituted as a public instrumentality, and the exercise by the
corporation of the power conferred by this section is considered to be the performance of
an essential public function. . . . .

Response
Effective July 1, 2000, section 212.04(2)(a)2.b., F.S., provided an exemption from tax for
admissions to exhibits sponsored by a governmental entity under certain conditions. In order to
qualify for the exemption, 100 percent of the funds at risk must have belonged to the government
sponsor and 100 percent of the risk of success or failure must have been with the government
sponsor. Also, student or faculty talent could not have been exclusively used in the exhibit. The
exemption expired effective July 1, 2009, causing admissions to events sponsored by a
governmental entity to be taxable. However, section 6 of Chapter 2010-147, Laws of Florida,
reenacts the exemption provided in section 212.04(2)(a)2.b., F.S., effective July 1, 2010.
The Museum is owned and operated by the Taxpayer and is, accordingly, an “agenc[y] of the
state which belong[s] to and [is] part of the executive branch of state government,” as provided
in section 1001.705(1)(a)4., F.S. You provide that 100 percent of the risk of success or failure is
with [the Taxpayer] and that 100 percent of the funds at risk with respect to the Museum belong
to [the Taxpayer]. You also provide that the Museum does not exclusively use faculty and/or
student talent with regard to any of the exhibitions it presents.

Technical Assistance Advisement
Page 4 of 4
Conclusion
Based on the above analysis, the admission charges imposed by the Museum are exempt from
tax pursuant to section 212.04(2)(a)2.b., F.S., effective July 1, 2010.

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 that
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,

Brinton Hevey
Tax Law Specialist
Technical Assistance and Dispute Resolution
850/488-7157
Record ID: 84586