When were the club dues exempt during Florida's 2023 Freedom Summer Sales Tax Holiday?

Plain-English summary

The Department concluded that the club's otherwise taxable membership dues qualified for Florida's 2023 Freedom Summer Sales Tax Holiday when both timing conditions were met.

Members had to pay the dues from May 29 through September 4, 2023. The dues also had to cover access beginning no earlier than May 29, 2023 and ending on or before December 31, 2023.

The exemption covered admissions to private or membership clubs providing physical fitness facilities. This was a historical, date-limited holiday.

What this means for you

This ruling explains a 2023 exemption window; it does not establish a current exemption for club dues. Current transactions require current-law review.

Common questions

When did payment have to occur? From May 29 through September 4, 2023.

How late could the covered membership period run? Through December 31, 2023.

Is this a current recurring exemption? The ruling addresses only the 2023 holiday.

Citations and references

• Fla. Stat. § 212.04; § 45, ch. 2023-157, Laws of Florida; and Fla. Admin. Code r. 12A-1.005(4)(a)1. and (4)(c), as cited in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 24A-010

Original ruling text

QUESTION: Whether the taxability of membership dues charged by Club to its members (“Members”)
in light of the Freedom Summer Sales Tax Holiday are exempt from sales tax?
ANSWER: Yes. If the membership agreement is only through December 31, 2023, and Members pay
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.

July 11, 2024

Via e-mail:
Re:

Dear

Technical Assistance Advisement – TAA #: 24A-010
(“Club”)
FEI#:
BP#:
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)(a).1 and (4) (c), Florida Administrative Code, (“F.A.C.”)
:

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 ADVISEMENT
Club request advisement on whether the taxability of membership dues charged to its members
(“Members”) in light of the Freedom Summer Sales Tax Holiday are exempt from sales tax. This
request includes the four categories of membership but does not relate to any other fees or charges
collected by the Club.

Technical Assistance Advisement
July 11, 2024
Page 2

FACTS
Club is located at
maintains Club facilities and amenities for the benefit of its members.

, and provides and

Club is a
corporation. Club is governed by Chapter 617, F.S.
and Club’s Articles of Incorporation and Bylaws.
Club offers four categories of membership:
,
, and
. Each of the
four categories includes full access to fitness facilities, which offers strength and cardiovascular
training equipment.
Club is well known for the size and quality of its physical fitness facilities. The facilities cover
of space and include a large assortment of
and g
.
Club also charges fees for additional services, such as guest use of
or
, and
. Club collects all applicable Florida
sales tax on membership dues as well as other taxable fees and other charges.
Membership dues are set by
.
members. “Club charges” is defined in

on a calendar-year basis in accordance with
prescribe that Club charges are billed monthly to
to include dues.
CLUB’S POSITION

Club believes, based on the relevant Florida Statutes, Florida Administrative Code, and Department
guidance, that the membership dues charged by Club are exempt from sales tax during the duration
of the Holiday. The statutes and rules clearly impose sales tax on these fees, and indeed, Club has
been collecting and remitting sales tax on its membership fees.
Club sells taxable admissions to facilities that include
. The fact that Club
offers other amenities does not exclude it from the Freedom Summer Sales Tax 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 limits Holiday
in any way that would exclude Club.
The dues collected for all four membership levels are in no way divisible or severable between the
various activities made available to each level. Even the
membership does not identify
or itemize prices for each possible activity a member may enjoy under that membership. No level of
membership is available that does not provide access to Club’s fitness facilities. 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. All four membership levels are eligible for the
sales tax exemption provided by Holiday.

Technical Assistance Advisement
July 11, 2024
Page 3

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 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.”
Rule 12A-1.005(4)(c), F.A.C., provides that, “Fees paid to private clubs or membership clubs as a
condition precedent to, in conjunction with, or for the use of the club’s recreational or physical fitness
facilities are subject to tax. Examples of such fees are:

1. User fees paid by members or nonmembers to an organization that entitle the payor to use the
   organization’s recreational or physical fitness facilities or equipment.
2. Dining room minimum fees.
3. Social membership fees when such payments are required of members who hold no equitable
   interest in, or ownership of, the club.
4. Periodic payments required to be paid by members or any payment required of a nonmember
   in order to use the club’s facilities.”
   CONCLUSION
   It is undisputed that Club’s membership dues constitute taxable “admissions” eligible for exemption
   during Holiday. Chapter 2023-157, Section 45, L.O.F., indicates that in order to be free of tax during
   the Holiday period, “admissions” must be:
   (i)
   1

Purchased during the period from May 29, 2023, through September 4, 2023; and

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
July 11, 2024
Page 4

(ii)

Provide the purchaser use of or access to a private or membership club providing
physical fitness facilities from May 29, 2023, through December 31, 2023.

Membership dues are set by the
on a calendar year basis and are billed
monthly to members. Accordingly, Club dues are not taxable “admissions” under ch. 212, F.S., when
they are: (i) paid during the period from May 29, 2023, through September 4, 2023; and (ii) for a
period beginning on or subsequent to May 29, 2023, and ending on or before 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.
Sincerely,

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

cc:

Record ID: 7001113468

Technical Assistance Advisement
July 11, 2024
Page 5

TADR Satisfaction Survey
The Florida Department of Revenue invites you to complete the online TADR Satisfaction Survey to help
us identify ways to improve our service to taxpayers. The survey is an opportunity to provide feedback
on your recent experience with the Department’s office of Technical Assistance and Dispute Resolution
(TADR). To access the survey, place the following address in your browser’s access bar:
https://tadr.questionpro.com
When you open the survey, you’ll be asked to enter the following information. This information will
enable you to complete and submit the survey.
Notification number:

7001113468

Respondent code:

44

Tax type:

Sales and Use Tax

Correspondence type: Technical Assistance
If you need technical assistance accessing the survey, please email Douglas Charity at
[email protected].
Thank you.