Were concert admissions and ticket-handling fees exempt when a 501(c)(3) arts organization supplied performers but a state college partner sold and processed the tickets?

Plain-English summary

The concert admissions and their ticket-handling fees were taxable. Florida's exemption applies when a qualifying section 501(c)(3) sponsoring organization imposes the admission charge. Here, the state-college partner sold the tickets through its theater and processed the proceeds.

The requester was a tax-exempt arts organization that supplied performing musicians and marketing. Under both rental and revenue-sharing arrangements, however, the theater sold the tickets online and at its box office, collected the admissions, and processed the proceeds. The ruling assumed the partner was not a section 501(c)(3) organization.

Because the partner rather than the qualifying arts organization imposed the admission charges, the nonprofit-sponsor exemption did not apply. The associated handling fees were also taxable because they were part of the admission price.

Common questions

Did the arts organization's exemption certificate make the public's tickets exempt? No. The general public bought the admissions, and the non-501(c)(3) partner imposed the charges.

Did the result change between a theater rental and a revenue-sharing agreement? No. In both arrangements, the partner sold and processed the tickets.

Were ticket-handling fees taxable? Yes. The Department treated them as part of the taxable admission price.

Citations and references

• Fla. Stat. § 212.02(1)
• Fla. Stat. § 212.04(2)(a)2.
• Fla. Admin. Code r. 12A-1.005(2)(f)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 23A-003

Original ruling text

QUESTION: Based on the facts provided below, is Florida sales tax due on admissions when a Florida
tax-exempt not-for-profit organization partners with a state college to provide concerts?
ANSWER: Florida sales tax is due on admissions when a Florida tax-exempt not-for-profit organization
partners with a state college to provide concerts under the facts provided in this TAA. In the instant
case, the admission charges are not being imposed by a not-for-profit 501(c)(3) sponsoring
organization (i.e. Taxpayer); rather, the admission charges are being imposed by Partner, which is not
an entity under s. 501(c)(3) of the Internal Revenue Code. Therefore, no exemptions apply to the
transaction under advisement, including the exemption provided for in s. 212.04(2)(a)2., F.S.;
consequently, tax is due on the admissions. Also, note that the general public is purchasing the
admissions, not Taxpayer.
QUESTION: Based on the facts provided below, is Florida sales tax due on ticket handling fees, which
are associated with the admissions, when a Florida tax-exempt not-for-profit organization partners
with a state college?
ANSWER: Florida sales tax is due on ticket handling fees, which are associated with the admissions,
when a Florida tax-exempt not-for-profit organization partners with a state college, since the ticket
handling fees are part of the admission price due and deemed to be taxable as discussed above.
February 7, 2023

Via e-mail:
Re:

Dear

Technical Assistance Advisement – TAA #: 23A-003
(“Taxpayer”)
Sales and Use Tax – Admissions
Section 212.04(2)(a) 2., Florida Statutes - (F.S.)
Rule 12A-1.005, Florida Administrative Code - (F.A.C.)
BP #:
FEI#:
:

Technical Assistance Advisement
February 7, 2023
Page 2

This is in response to your letter received November 7, 2022, requesting this Department’s issuance
of a Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule Chapter
12-11 F.A.C, Florida Administrative Code, regarding the matter discussed below. Your request has
been carefully examined, and the Department finds it to be in compliance with the requisite criteria
set forth in Chapter 12-11, 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.
REQUESTED ADVISEMENTS
•
•

Is Florida sales tax due on admissions when a Florida tax-exempt not-for-profit organization
partners with a state college to provide concerts?
Is Florida sales tax due on ticket handling fees, which are associated with the admissions, when a
Florida tax-exempt not-for-profit organization partners with a state college?
FACTS

In your written request for a TAA, you provided the following facts. Taxpayer is a small, not-for-profit
501(c)(3) arts organization that holds a Florida Consumer’s Certificate of Exemption (Form DR-14).
Taxpayer partners with
("Partner”) to provide concerts for the general public
to enjoy. Partner owns and operates the
(“Theater”), a music theater that is the
venue for the concerts. Taxpayer provides the performing musicians and marketing for the concerts.
Taxpayer did not directly indicate whether or not Partner is a 501(c)(3) organization. Therefore, for
purposes of this TAA, it is presumed that Partner is not a 501(c)(3) organization.
Taxpayer and Partner’s partnership is either a “rental” or a “partnership agreement.” When the
partnership is a rental, Taxpayer rents Theatre from Partner and 100% of the admission ticket
revenue (after the ticket handling fees have been deducted) is remitted to Taxpayer by Partner.
When there is a partnership agreement, Taxpayer and Partner split the net proceeds from the
admission ticket revenue.
In our email correspondence on November 30, 2022, and December 5, 2022, you provided the
following additional facts:
•
•
•
•

Taxpayer is responsible for providing insurance for every event based on the Theater contract.
Theater sells tickets for the concerts online and through its box office for both the rental and
the partnership agreements.
Admissions for concerts are collected by Theater and proceeds are processed through
Partner.
Per the “Event Settlement” provided for partnership agreements, sales tax on admissions is
“included in Ticket Sales” and is backed out of the gross proceeds before the “Net Ticket
Revenue” is distributed by Partner between Taxpayer and Partner based on an agreed upon
percentage split. For rental agreements, Partner distributes 100% of the ticket revenue to
Taxpayer (less the ticket handling fees).

Technical Assistance Advisement
February 7, 2023
Page 3

Per your email dated December 7, 2022, you asserted:
•

•

Taxpayer does not remit sales tax to the Florida Department of Revenue on admissions or the
sales tax on ticket handling fees since the admissions and ticket handling fees are charged
and collected by Theater. The sales tax on admissions and ticket handling is remitted to the
Florida Department of Revenue by Partner.
All proceeds from concerts involving Taxpayer are processed through Partner.

The following documentation was provided as part of Taxpayer’s TAA request: Copies of sample
“Facilities Use Contracts” and “Event Settlements.”
The Florida Department of Revenue previously issued two LTAs to Taxpayer on July 27, 2022, and
September 20, 2022, stating, “Admission charges are subject to tax; however, admission charges
imposed by not-for-profit sponsoring organizations are exempt from Florida sales tax, when the notfor-profit sponsoring organization qualifies as a not-for-profit under s. 501(c)(3) of the Internal
Revenue Code 1954.”
LAW AND DISCUSSION
Section 212.04, F.S., provides that the sales of admissions are taxable in Florida, unless specifically
exempt. The term "admissions" is defined as the net sum of money for admitting a person or persons
to any place of amusement, sport, or recreation. See s. 212.02(1), F.S.
Section 212.04(2)(a)2., F.S., provides a specific exemption on admission charges imposed by not-forprofit sponsoring organizations. To receive this exemption, the sponsoring organization must qualify
as a not-for-profit entity under s. 501(c)(3) of the Internal Revenue Code. See also Rule 12A1.005(2)(f), F.A.C.
CONCLUSION
Florida sales tax is due on admissions when a Florida tax-exempt not-for-profit organization partners
with a state college to provide concerts under the facts provided in this TAA. In the instant case, the
admission charges are not being imposed by a not-for-profit 501(c)(3) sponsoring organization (i.e.
Taxpayer); rather, the admission charges are being imposed by Partner, which is not an entity under
s. 501(c)(3) of the Internal Revenue Code. Therefore, no exemptions apply to the transaction under
advisement, including the exemption provided for in s. 212.04(2)(a)2., F.S.; consequently, tax is due
on the admissions. Also, note that the general public is purchasing the admissions, not Taxpayer.
Florida sales tax is due on ticket handling fees, which are associated with the admissions, when a
Florida tax-exempt not-for-profit organization partners with a state college, since the ticket handling
fees are part of the admission price due and deemed to be taxable as discussed above.
This response constitutes a TAA under s. 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 s. 213.22, F.S. Our

Technical Assistance Advisement
February 7, 2023
Page 4

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 s.
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 TAA,
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
ten (10) days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850) 717-7759.
Sincerely,

Alesia Pride
Alesia Pride
Tax Law Specialist
Technical Assistance & Dispute Resolution

Record ID: 7000862768

Technical Assistance Advisement
February 7, 2023
Page 5

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