Florida Senate - 2010 SB 1128 By Senator Altman 24-00936A-10 20101128__ 1 A bill to be entitled 2 An act relating to the admissions tax; amending s. 3 212.04, F.S.; expanding an exemption from the tax for 4 certain sports championship or all-star games, certain 5 other professional sporting events, and events 6 surrounding certain professional sporting events; 7 providing an effective date. 8 9 Be It Enacted by the Legislature of the State of Florida: 10 11 Section 1. Paragraph (a) of subsection (2) of section 12 212.04, Florida Statutes, is amended to read: 13 212.04 Admissions tax; rate, procedure, enforcement.— 14 (2)(a)1. No tax shall be levied on admissions to athletic 15 or other events sponsored by elementary schools, junior high 16 schools, middle schools, high schools, community colleges, 17 public or private colleges and universities, deaf and blind 18 schools, facilities of the youth services programs of the 19 Department of Children and Family Services, and state 20 correctional institutions when only student, faculty, or inmate 21 talent is used. However, this exemption shall not apply to 22 admission to athletic events sponsored by a state university, 23 and the proceeds of the tax collected on such admissions shall 24 be retained and used by each institution to support women’s 25 athletics as provided in s. 1006.71(2)(c). 26 2.a. No tax shall be levied on dues, membership fees, and 27 admission charges imposed by not-for-profit sponsoring 28 organizations. To receive this exemption, the sponsoring 29 organization must qualify as a not-for-profit entity under the 30 provisions of s. 501(c)(3) of the Internal Revenue Code of 1954, 31 as amended. 32 b. No tax shall be levied on admission charges to an event 33 sponsored by a governmental entity, sports authority, or sports 34 commission when held in a convention hall, exhibition hall, 35 auditorium, stadium, theater, arena, civic center, performing 36 arts center, or publicly owned recreational facility and when 37 100 percent of the risk of success or failure lies with the 38 sponsor of the event and 100 percent of the funds at risk for 39 the event belong to the sponsor, and student or faculty talent 40 is not exclusively used. As used in this sub-subparagraph, the 41 terms “sports authority” and “sports commission” mean a 42 nonprofit organization that is exempt from federal income tax 43 under s. 501(c)(3) of the Internal Revenue Code and that 44 contracts with a county or municipal government for the purpose 45 of promoting and attracting sports-tourism events to the 46 community with which it contracts. This sub-subparagraph is 47 repealed July 1, 2009. 48 3. No tax shall be levied on an admission paid by a 49 student, or on the student’s behalf, to any required place of 50 sport or recreation if the student’s participation in the sport 51 or recreational activity is required as a part of a program or 52 activity sponsored by, and under the jurisdiction of, the 53 student’s educational institution, provided his or her 54 attendance is as a participant and not as a spectator. 55 4. No tax shall be levied on admissions to the National 56 Football League championship game, on admissions to any 57 semifinal game or championship game of a national collegiate 58 tournament, or on admissions to a Major League Baseball, 59 National Basketball Association, or National Hockey League all 60 star game, to the Home Run Derby held by Major League Baseball 61 prior to the Major League Baseball All-Star Game, to the 62 National Football League’s Pro Bowl, and to any events 63 surrounding the all-star games for the National Basketball 64 Association and the National Hockey League. 65 5. A participation fee or sponsorship fee imposed by a 66 governmental entity as described in s. 212.08(6) for an athletic 67 or recreational program is exempt when the governmental entity 68 by itself, or in conjunction with an organization exempt under 69 s. 501(c)(3) of the Internal Revenue Code of 1954, as amended, 70 sponsors, administers, plans, supervises, directs, and controls 71 the athletic or recreational program. 72 6. Also exempt from the tax imposed by this section to the 73 extent provided in this subparagraph are admissions to live 74 theater, live opera, or live ballet productions in this state 75 which are sponsored by an organization that has received a 76 determination from the Internal Revenue Service that the 77 organization is exempt from federal income tax under s. 78 501(c)(3) of the Internal Revenue Code of 1954, as amended, if 79 the organization actively participates in planning and 80 conducting the event, is responsible for the safety and success 81 of the event, is organized for the purpose of sponsoring live 82 theater, live opera, or live ballet productions in this state, 83 has more than 10,000 subscribing members and has among the 84 stated purposes in its charter the promotion of arts education 85 in the communities which it serves, and will receive at least 20 86 percent of the net profits, if any, of the events which the 87 organization sponsors and will bear the risk of at least 20 88 percent of the losses, if any, from the events which it sponsors 89 if the organization employs other persons as agents to provide 90 services in connection with a sponsored event. Prior to March 1 91 of each year, such organization may apply to the department for 92 a certificate of exemption for admissions to such events 93 sponsored in this state by the organization during the 94 immediately following state fiscal year. The application shall 95 state the total dollar amount of admissions receipts collected 96 by the organization or its agents from such events in this state 97 sponsored by the organization or its agents in the year 98 immediately preceding the year in which the organization applies 99 for the exemption. Such organization shall receive the exemption 100 only to the extent of $1.5 million multiplied by the ratio that 101 such receipts bear to the total of such receipts of all 102 organizations applying for the exemption in such year; however, 103 in no event shall such exemption granted to any organization 104 exceed 6 percent of such admissions receipts collected by the 105 organization or its agents in the year immediately preceding the 106 year in which the organization applies for the exemption. Each 107 organization receiving the exemption shall report each month to 108 the department the total admissions receipts collected from such 109 events sponsored by the organization during the preceding month 110 and shall remit to the department an amount equal to 6 percent 111 of such receipts reduced by any amount remaining under the 112 exemption. Tickets for such events sold by such organizations 113 shall not reflect the tax otherwise imposed under this section. 114 7. Also exempt from the tax imposed by this section are 115 entry fees for participation in freshwater fishing tournaments. 116 8. Also exempt from the tax imposed by this section are 117 participation or entry fees charged to participants in a game, 118 race, or other sport or recreational event if spectators are 119 charged a taxable admission to such event. 120 9. No tax shall be levied on admissions to any postseason 121 collegiate football game sanctioned by the National Collegiate 122 Athletic Association. 123 Section 2. This act shall take effect July 1, 2010.