Florida Senate - 2010 SB 1070 By Senator Altman 24-00915A-10 20101070__ 1 A bill to be entitled 2 An act relating to the tax on admissions; amending s. 3 212.04, F.S.; creating an exemption from the tax on 4 admissions for certain events sponsored by a 5 governmental entity, sports authority, or sports 6 commission; providing an effective date. 7 8 Be It Enacted by the Legislature of the State of Florida: 9 10 Section 1. Subsection (2) of section 212.04, Florida 11 Statutes, is amended to read: 12 212.04 Admissions tax; rate, procedure, enforcement.— 13 (2)(a)1. No tax shall be levied on admissions to athletic 14 or other events sponsored by elementary schools, junior high 15 schools, middle schools, high schools, community colleges, 16 public or private colleges and universities, deaf and blind 17 schools, facilities of the youth services programs of the 18 Department of Children and Family Services, and state 19 correctional institutions when only student, faculty, or inmate 20 talent is used. However, this exemption shall not apply to 21 admission to athletic events sponsored by a state university, 22 and the proceeds of the tax collected on such admissions shall 23 be retained and used by each institution to support women’s 24 athletics as provided in s. 1006.71(2)(c). 25 2.a. No tax shall be levied on dues, membership fees, and 26 admission charges imposed by not-for-profit sponsoring 27 organizations. To receive this exemption, the sponsoring 28 organization must qualify as a not-for-profit entity under the 29 provisions of s. 501(c)(3) of the Internal Revenue Code of 1954, 30 as amended. 31 b. A tax may not be levied on admission charges to an event 32 sponsored by a governmental entity, sports authority, or sports 33 commission if the event is held in a convention hall, exhibition 34 hall, auditorium, stadium, theater, arena, civic center, 35 performing arts center, or publicly owned recreational facility 36 and all of the risk of success or failure lies with the sponsor 37 of the event and all of the funds at risk for the event belong 38 to the sponsor. As used in this sub-subparagraph, the terms 39 “sports authority” and “sports commission” mean a nonprofit 40 organization that is exempt from federal income tax under s. 41 501(c)(3) of the Internal Revenue Code and that contracts with a 42 county or municipal government for the purpose of promoting and 43 attracting sports-tourism events to the community with which it 44 contracts.No tax shall be levied on admission charges to an45event sponsored by a governmental entity, sports authority, or46sports commission when held in a convention hall, exhibition47hall, auditorium, stadium, theater, arena, civic center,48performing arts center, or publicly owned recreational facility49and when 100 percent of the risk of success or failure lies with50the sponsor of the event and 100 percent of the funds at risk51for the event belong to the sponsor, and student or faculty52talent is not exclusively used. As used in this sub53subparagraph, the terms “sports authority” and “sports54commission” mean a nonprofit organization that is exempt from55federal income tax under s. 501(c)(3) of the Internal Revenue56Code and that contracts with a county or municipal government57for the purpose of promoting and attracting sports-tourism58events to the community with which it contracts. This sub59subparagraph is repealed July 1, 2009.60 3. No tax shall be levied on an admission paid by a 61 student, or on the student’s behalf, to any required place of 62 sport or recreation if the student’s participation in the sport 63 or recreational activity is required as a part of a program or 64 activity sponsored by, and under the jurisdiction of, the 65 student’s educational institution, provided his or her 66 attendance is as a participant and not as a spectator. 67 4. No tax shall be levied on admissions to the National 68 Football League championship game, on admissions to any 69 semifinal game or championship game of a national collegiate 70 tournament, or on admissions to a Major League Baseball all-star 71 game. 72 5. A participation fee or sponsorship fee imposed by a 73 governmental entity as described in s. 212.08(6) for an athletic 74 or recreational program is exempt when the governmental entity 75 by itself, or in conjunction with an organization exempt under 76 s. 501(c)(3) of the Internal Revenue Code of 1954, as amended, 77 sponsors, administers, plans, supervises, directs, and controls 78 the athletic or recreational program. 79 6. Also exempt from the tax imposed by this section to the 80 extent provided in this subparagraph are admissions to live 81 theater, live opera, or live ballet productions in this state 82 which are sponsored by an organization that has received a 83 determination from the Internal Revenue Service that the 84 organization is exempt from federal income tax under s. 85 501(c)(3) of the Internal Revenue Code of 1954, as amended, if 86 the organization actively participates in planning and 87 conducting the event, is responsible for the safety and success 88 of the event, is organized for the purpose of sponsoring live 89 theater, live opera, or live ballet productions in this state, 90 has more than 10,000 subscribing members and has among the 91 stated purposes in its charter the promotion of arts education 92 in the communities which it serves, and will receive at least 20 93 percent of the net profits, if any, of the events which the 94 organization sponsors and will bear the risk of at least 20 95 percent of the losses, if any, from the events which it sponsors 96 if the organization employs other persons as agents to provide 97 services in connection with a sponsored event. Prior to March 1 98 of each year, such organization may apply to the department for 99 a certificate of exemption for admissions to such events 100 sponsored in this state by the organization during the 101 immediately following state fiscal year. The application shall 102 state the total dollar amount of admissions receipts collected 103 by the organization or its agents from such events in this state 104 sponsored by the organization or its agents in the year 105 immediately preceding the year in which the organization applies 106 for the exemption. Such organization shall receive the exemption 107 only to the extent of $1.5 million multiplied by the ratio that 108 such receipts bear to the total of such receipts of all 109 organizations applying for the exemption in such year; however, 110 in no event shall such exemption granted to any organization 111 exceed 6 percent of such admissions receipts collected by the 112 organization or its agents in the year immediately preceding the 113 year in which the organization applies for the exemption. Each 114 organization receiving the exemption shall report each month to 115 the department the total admissions receipts collected from such 116 events sponsored by the organization during the preceding month 117 and shall remit to the department an amount equal to 6 percent 118 of such receipts reduced by any amount remaining under the 119 exemption. Tickets for such events sold by such organizations 120 shall not reflect the tax otherwise imposed under this section. 121 7. Also exempt from the tax imposed by this section are 122 entry fees for participation in freshwater fishing tournaments. 123 8. Also exempt from the tax imposed by this section are 124 participation or entry fees charged to participants in a game, 125 race, or other sport or recreational event if spectators are 126 charged a taxable admission to such event. 127 9. No tax shall be levied on admissions to any postseason 128 collegiate football game sanctioned by the National Collegiate 129 Athletic Association. 130 (b) No municipality of the state shall levy an excise tax 131 on admissions. 132 (c) The taxes imposed by this section shall be collected in 133 addition to the admission tax collected pursuant to s. 550.0951, 134 but the amount collected under s. 550.0951 shall not be subject 135 to taxation under this chapter. 136 Section 2. This act shall take effect July 1, 2010.