Which club dues and facility-use charges qualified for Florida's 2023 Freedom Summer Sales Tax Holiday?

Plain-English summary

Florida's 2023 Freedom Summer Sales Tax Holiday did not exempt the club's full annual membership cycle. The Department said the exemption applied only when qualifying dues or fees were paid from May 29 through September 4, 2023, and only for membership or access occurring through December 31, 2023.

That meant dues for the club's October 1, 2023-September 30, 2024 membership year were not exempt in full. The portion covering periods after December 31, 2023 remained taxable.

Prorated dues for a new member could qualify to the extent they were paid during the holiday payment window. The Department also said the exemption applied uniformly across the club's three membership levels and covered additional-facility privileges and guest charges for qualifying access during the holiday use period.

What this means for you

For this temporary holiday, both timing tests mattered: when the customer paid and when the covered access occurred. Prepaying during the holiday did not make access after December 31, 2023 exempt.

The ruling also treated qualifying dues consistently across golf, racquet-sports, and social memberships because every level included access to the club's physical-fitness facilities.

Common questions

Did payment during the holiday exempt an entire annual membership? No. Access after December 31, 2023 remained taxable.

Could prorated dues qualify? Yes, to the extent the dues were paid from May 29 through September 4, 2023 for the covered period.

Did the result differ by membership level? No. The Department answered that the holiday applied uniformly to all three levels.

Were extra privileges and guest charges covered? Yes, for qualifying payments and use within the ruling's holiday periods.

Citations and references

• Chapter 2023-157, § 45, Laws of Florida, as quoted in the advisement.
• Fla. Stat. §§ 212.02(1) and 212.04.
• Fla. Admin. Code r. 12A-1.005(4)(a)1.
• Florida Tax Information Publication TIP #23A01-03, as discussed in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 24A-004M

Original ruling text

QUESTIONS:

1. (a) Dues Generally. Does the Holiday apply to such membership dues paid for the current
   Membership Year (commencing October 1, 2023, and expiring September 30, 2024)?
   (b) Exemption Period. To the extent the Holiday applies to membership dues paid during the
   Holiday Payment Period, does it apply to the entire Membership Year or solely to the portion
   falling within the time period commencing May 29, 2023, and expiring December 31, 2023
   (the “Holiday Use Period”)?
   (c) Prorated Dues. As to the prior Membership Year (commencing October 1, 2022, and
   expiring September 30, 2023), does the Holiday apply to prorated dues paid by a new
   Member to allow for membership between the membership start date and the end of the
   prior Membership Year on September 30, 2023?
   (d) Membership Levels. To the extent the Holiday applies to membership dues paid for by
   Members, does it apply uniformly to each of the three membership levels?
2. (a) Additional Privileges. Does the Holiday apply to Club fees imposed on Members for use
   of Club facilities during the Holiday Use Period which are beyond such Members’ respective
   membership categories (“Additional Privileges”), such as use of golf facilities by Racquet
   Sports Members and use of golf or racquet sports facilities by Social Members?
   (b) Guest Charges. Does the Holiday apply to Club fees imposed on Members for use of Club
   facilities by their Guests during the Holiday Use Period?

ANSWERS:

1. (a) No. The exemption dates are May 29, 2023, through September 04, 2023, for
   membership occurring through December 31, 2023.
   (b) The exemption only applies to dues paid from May 29, 2023, through September 04, 2023,
   for membership occurring through December 31, 2023. Payments made for periods occurring
   after December 31, 2023, are subject to tax. Therefore, the entire Membership Year would
   not be exempt from tax.
   (c) Yes. Only to the extent that the payment of dues was made from May 29, 2023, through
   September 04, 2023. If payment was made during this period, the monthly due for May
   2023 through September would be exempt from tax.
   (d) Yes.

Technical Assistance Advisement
April 30, 2024
Page 2

2. (a) Yes.
   (b) Yes. The exemption dates are May 29, 2023, through September 04, 2023, for guest
   membership occurring through December 31, 2023.

April 30, 2024

Via e-mail:
Re:

Technical Assistance Advisement – TAA #: 24A-004M

Sales and Use Tax – Freedom Summer Sales Tax Holiday
Chapter 2023-157, Section 45, Laws of Florida (“L.O.F.”)
Section 212.04, Florida Statutes - (“F.S.”)
Rule 12A-1.005(4), Florida Administrative Code, (“F.A.C.”)
Dear
This is in response to your letter dated
, requesting this Department’s issuance of
a Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule Chapter 1211 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
Club request advisement on whether the taxability of dues and other fees charged to its members
(“Members”) in light of the Freedom Summer Sales Tax Holiday are subject to sales tax.
Club seeks the Department’s response to the following questions in relation to the impact of the
Holiday:

Technical Assistance Advisement
April 30, 2024
Page 3

1. Membership Dues. With respect to membership dues paid between May 29, 2023, and
   September 4, 2023 (the “Holiday Payment Period”):
   (a) Dues Generally. Does the Holiday apply to such membership dues paid for
   the current Membership Year (commencing October 1, 2023, and expiring
   September 30, 2024)?
   (b) Exemption Period. To the extent the Holiday applies to membership dues
   paid during the Holiday Payment Period, does it apply to the entire
   Membership Year or solely to the portion falling within the time period
   commencing May 29, 2023, and expiring December 31, 2023 (the “Holiday
   Use Period”)?
   (c) Prorated Dues. As to the prior Membership Year (commencing October 1,
   2022, and expiring September 30, 2023), does the Holiday apply to prorated
   dues paid by a new Member to allow for membership between the
   membership start date and the end of the prior Membership Year on
   September 30, 2023?
   (d) Membership Levels. To the extent the Holiday applies to membership dues
   paid for by Members, does it apply uniformly to each of the three membership
   levels?
2. Additional Fees. With respect to fees and charges paid by Members during the
   Holiday Payment Period:
   (a) Additional Privileges. Does the Holiday apply to Club fees imposed on
   Members for use of Club facilities during the Holiday Use Period which are
   beyond such Members’ respective membership categories (“Additional
   Privileges”), such as use of golf facilities by Racquet Sports Members and use
   of golf or racquet sports facilities by Social Members?
   (b) Guest Charges. Does the Holiday apply to Club fees imposed on Members
   for use of Club facilities by their Guests during the Holiday Use Period?
   FACTS
   The following information/facts have been provided with the request for advisement:
   The Club is a Florida Registered dealer located at
   and provides and maintains various amenities and facilities for the benefit of its Members and
   Members’ relatives, guests, and invitees (“Guests”).
   The Club is a member-owned nonprofit Florida corporation governed by Chapter 617, F.S., and the
   Club’s Articles of Incorporation, Bylaws, and Rules and Regulations.

Technical Assistance Advisement
April 30, 2024
Page 4

The Club offers three categories of membership: Golf, Racquet Sports, and Social. Each of the
categories includes full access to social facilities, locker rooms, aquatic and spa facilities, and fitness
facilities, which offer strength and cardiovascular training equipment. The Club also charges fees for
certain additional services, such as golf cart fees, lessons with golf or tennis professionals and charges
for Guests’ use of the Club’s facilities.
The Club’s fiscal year (“Membership Year”) begins October 1 annually. All membership dues and
other yearly fees are paid annually in advance and are due in full by September 30. New Members
are responsible paying the Club a prorated portion of membership dues, calculated from the latter of
(i) the closing date of their purchase of a residence in the community of
and (ii) the date
upon which they are accepted for membership in the Club. The Club bills Members for other charges
on a monthly basis. The Club collects sales tax from Members on all membership dues and other sales
subject to Florida sales tax.
Additional details regarding the Club’s dues for all three membership categories as well as other fees
can be found in the Dues Renewal Form and Annual Schedule. The dues are set by the Club’s Board
of Governors and are subject to change annually.
CLUB’S POSITION

Club believes, based on the relevant Florida Statutes, Florida Administrative Code, and Department
guidance, that during the Holiday Payment Period, payments made to the Club for membership dues
and additional fees charged by the Club for (i) the use and enjoyment of the Club’s facilities by Guests
(including access to physical fitness facilities) and (ii) the Additional Privileges selected by Social and
Racquet Sports Members are all exempt from sales tax. The statutes and rules clearly impose sales
tax on these payments, and indeed, the Club has been collecting and remitting sales tax on payments
received from its Members for membership dues and the additional fees.
Club sells taxable admissions to facilities that include physical fitness facilities. The fact that the Club
offers other amenities does not exclude it from the Holiday. The plain language of Section 45, Chapter
2023-157, Laws of Florida, clearly includes otherwise taxable admissions to fitness facilities in the
Holiday. Nothing in Section 45 or TIP #23A01-03 limit the Holiday in any way that would exclude the
Club. Neither Section 45 nor TIP #23A01-03 limit the Holiday to entities that provide fitness facilities
but no other recreational facilities.
Each level of membership provides Members access to the Club’s fitness facilities. The dues collected
for all of the Club’s membership levels are in no way divisible or severable between the various
activities made available to each level. Even the lowest level membership does not identify or itemize
prices for each possible activity a Member may enjoy under that category of membership. Section 45
of Chapter 2023-157, Laws of Florida, and TIP #2301-03 do not exclude sales of access to fitness
facilities in combination with access to other facilities or activities from the Holiday.

Technical Assistance Advisement
April 30, 2024
Page 5

LAW AND DISCUSSION
Chapter 2023-157, Section 45, Laws of Florida (“L.O.F.”), provides that Florida sales and use tax may
not be collected on purchases of admissions1 made during the period from May 29, 2023, through
September 4, 2023, for the “use of or access to private and membership clubs providing physical
fitness facilities from May 29, 2023, through December 31, 2023.”
On May 25, 2023, the Department published a Tax Information Publication (“TIP”), TIP #23A01-03,
regarding the Holiday. The TIP provides that “during the sales tax holiday period, tax is not due on
the retail sale of admissions to… fitness facilities.” It further clarifies that “admissions to… private and
membership clubs providing physical fitness facilities” are eligible for the tax holiday.
Section 212.04, F.S., provides that the sales of admissions are taxable in Florida. 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.
Rule 12A-1.005(4)(a)1., F.A.C., provides that, “Dues and user fees paid to any organization, including
athletic clubs, health spas, civic, fraternal, and religious clubs, that provide physical fitness facilities
or recreational facilities, such as golf courses, tennis courts, swimming pools, yachting, boating,
athletic, exercise, and fitness facilities, are subject to tax.”

CONCLUSIONS
If the membership agreement is only through December 31, 2023, and the member pays the
membership dues for a period ending December 31, 2023, during the period May 29, 2023, through
September 4, 2023, such dues would be exempt from Florida sales tax.
Below is the Department’s response to the Club’s questions in relation to the impact of the Holiday:

1. (a) No. The exemption dates are May 29, 2023, through September 04, 2023, for
   membership occurring through December 31, 2023.
   (b) The exemption only applies to dues paid from May 29, 2023, through September 04, 2023,
   for membership occurring through December 31, 2023. Payments made for periods occurring
   after December 31, 2023, are subject to tax. Therefore, the entire Membership Year would
   not be exempt from tax.
   (c) Yes. Only to the extent that the payment of dues was made from May 29, 2023, through
   September 04, 2023. If payment was made during this period, the monthly due for May 2023
   through September would be exempt from tax.

1 Section 212.02(1), F.S., defines the term “admissions,” as “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 . . .”

Technical Assistance Advisement
April 30, 2024
Page 6

(d) ) Yes.

2. (a) Yes.
   (b) Yes. The exemption dates are May 29, 2023, through September 04, 2023, for guest
   membership occurring through December 31, 2023.
   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
   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.

Kind Regards,

Technical Assistance & Dispute Resolution

CC:

Technical Assistance Advisement
April 30, 2024
Page 7

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