Did the cultural attraction qualify as an exhibition hall in Florida TAA 24A-007?

Plain-English summary

The Department treated the taxpayer's cultural attraction as an exhibition hall for section 212.031(1)(a)10.

Its agreement licensing on-site premises to a restaurant operator for café and shop services therefore qualified for Florida's sales and use tax exemption for food-and-drink concessionaire premises within an exhibition hall.

What this means for you

The exemption depended on both the character of the venue and the concessionaire's use of the licensed space. A different venue or use may produce a different result.

Common questions

Was the attraction an exhibition hall? Yes, under the specific facts.

What agreement qualified? The agreement licensing premises to the restaurant operator for café and shop services.

Citations and references

• Fla. Stat. §§ 212.02 and 212.031, as cited in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 24A-007

Original ruling text

QUESTION: Does Taxpayer qualify for the Florida sales and use tax exemption provided under s.
212.031(1)(a)10., F.S., based on the facts presented with this request?
ANSWER: Taxpayer qualifies as an exhibition hall for the Florida sales and use tax exemption
provided under s. 212.031(1)(a)10., F.S., based on the facts presented with this request.

May 30, 2024

Re:

Dear

Technical Assistance Advisement – TAA #: 24A-007
(“Taxpayer”)
Sales and Use Tax – Concessionaire License
Sections 212.02, 212.031, Florida Statutes - (“F.S.”)
Rules Florida Administrative Code - (“F.A.C.”)
BP #:
,

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 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 ADVISEMENT
Does Taxpayer qualify for the Florida sales and use tax exemption provided under s.
212.031(1)(a)10., F.S., based on the facts presented with this request?
FACTS
You state in the letter:

Technical Assistance Advisement
May 30, 2024
Page 2

1. Taxpayer is a
   corporation.
2. The principal place of business and mailing address of Taxpayer is
   .
3. Taxpayer’s identifying numbers are as follows: FEI/EIN:
   and Certificate of
   Exemption Number
   (Exhibit A).
4. Taxpayer operates and manages the facilities and property owned by
   (the “County”) and known and designated as
   ) pursuant to an
   between the
   and
   .
   5.
   is the sole owner of the
   , which is located at
   .
5. The
   has been a
   since it opened to the public in
   ; it
   welcomes
   annually.
6. The
   is a
   and premier cultural attraction in the
   County that preserves its cultural and environmental resources to engage people in
   connecting with the
7. Taxpayer entered into an agreement with
   (the
   “Operator”) for the operation of a Café and Shop on the premises of the
   (the “Café and Shop Agreement”). (See Exhibit C).
8. The principal place of business and mailing address for the Operator is
   . FEI/EIN:
   (Exhibit B).
9. The Café and Shop Agreement grants the Operator a license to use the facilities located
   in the
   (the
   “Premises”) to provide “Café and Shop services to
   patrons;
   cater programs, meetings and special events when engaged by Taxpayer to do so
   (“Internal Catering”); and to provide “food, beverages, and/or merchandise for purchase
   by patrons at
   programs or events” and operates for the benefit of
   visitors to the
   . (See Exhibit C, Café and Shop Agreement, Section 3, 4, and
   9). The Café and Shop Agreement includes as
   ,
   that
   specifically identify the Premises.
10. Under the Café and Shop Agreement, Taxpayer collects a “Total Monthly Payment,” which
    consists of the following (See Exhibit C, Café and Shop Agreement, Section 10):
    a. Monthly Rent of
    for use of the Premises;
    b. Monthly fee for utility services in the amount of $
    ;
    c. A percentage of the Operator’s monthly gross receipts (less the Monthly Rent)
    based on the matrix as shown in Attachment C, Café and Shop Agreement, Exhibit
    C; and
    d. A $
    Gathering Fee for each small catered gathering (maximum capacity
    ) that the Operator organizes in a
    .
11. The Operator is independently responsible for collecting and remitting sales tax to the
    State of Florida for all of its food and merchandise sales.

Technical Assistance Advisement
May 30, 2024
Page 3

LAW AND DISCUSSION
Section 212.031(1)(a), Florida Statutes (F.S.), provides it is the legislative intent that every person
is exercising a taxable privilege who engages in the business of renting, leasing, letting, or
granting a license for the use of any real property, with certain enumerated exceptions. A
"license" to use real property is defined in s. 212.02(10)(i), F.S., as "... the granting of a privilege
to use or occupy a building or a parcel of real property for any purpose."
Section 212.031(1)(a)10., F.S., also provides, in relevant part, the following exemption for a
person providing food and drink concessionaire services:
Leased, subleased, licensed, or rented to a person providing food and drink
concessionaire services within the premises of a convention hall, exhibition hall,
auditorium, stadium, theater, arena, civic center, performing arts center, publicly owned
recreational facility, or any business operated under a permit issued pursuant to chapter

550. A person providing retail concessionaire services involving the sale of food and drink
     or other tangible personal property within the premises of an airport shall be subject to
     tax on the rental of real property used for that purpose, but shall not be subject to the
     tax on any license to use the property. For purposes of this subparagraph, the term “sale”
     shall not include the leasing of tangible personal property.
     No definition of “exhibition hall” is provided by statute. Thus, it is necessary to look to principles
     of statutory construction. Words of common usage, when used in a statute, should be construed
     in their plain and ordinary sense, Pederson v. Green, 105 So.2d1(Fla. 1958). Using common
     language, an exhibition hall is a building or room in a building in which exhibits are displayed. The
     exemption is granted for leases, rentals, and licenses to use premises at specified venue-types,
     such as exhibition halls, to persons providing food and drink concessionaire services.
     Based on the above, Taxpayer would be considered to be an “exhibition hall” as defined in s.
     212.031. F.S.
     CONCLUSION
     Under the specific facts presented, Taxpayer is an “exhibition hall” for purposes of s.
     212.031(1)(a)10., F.S., and Taxpayer’s Agreement with Restaurant qualifies for the Florida sales
     and use tax exemption set forth therein.
     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

Technical Assistance Advisement
May 30, 2024
Page 4

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)717-6839.
Sincerely,

Xiaoxi Miao
Xiaoxi Miao
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850)717-6839

Record ID: 7001127351

Technical Assistance Advisement
May 30, 2024
Page 5

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Tax type:

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