Free GT-800003 - Florida

Sales and Use Tax on Concession Stands
What is Taxable?

GT-800003 R. 06/09

Sales of food, drinks, tobacco products, and other items of tangible property with a sale price of 10 cents or more are taxable when made from concession stands at arenas, auditoriums, carnivals, fairs, stadiums, theaters, street corners, and similar places of business. Concession stand examples include hot dog stands, ice cream and yogurt stands, snow cone stands, and tobacco stands. All concession stand operators must collect sales tax and applicable discretionary sales surtax, unless exempt.

What is Exempt?
Sales and use tax does not apply to the lease, sublease, license, or rental of real property to a person providing food and drink services within the premises of a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, publicly owned recreational facility, or pari-mutuel facility. A person who sells souvenirs, novelties, or other event-related products at a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or public recreation, during an event; and whose lease applies only to the portion of the rental, lease, or license payment based on a percentage of sales (not on a fixed price), is exempt from sales tax. A roadside stand does not collect tax on the sales of natural fruit and vegetable juices if the Department of Business and Professional Regulation does not require it to have a license. However, if you sell soft drinks or other taxable items, you must collect sales tax and applicable discretionary sales surtax on the taxable items. Religious institutions that regularly conduct nonprofit religious services at established places of worship do not collect tax on the taxable items sold at their concession stands. Fundraising events, held no more than two times in a 12-month period, that meet all the requirements provided in Rule 12A-1.037, Florida Administrative Code, are not required to charge tax. However, you must pay the applicable taxes to the supplier for items used by the concession stand. Food sold as part of a school lunch to students, teachers, school employees, or school guests in public, parochial, or nonprofit schools (grades K through 12) is not taxable.

How Tax is Calculated on Concession Sales
When it is impractical to state separately the tax, the following rate may be used:
County Sales Tax Rate Concession Stand Effective Tax Rate

6.0 % 6.25 % 6.5 % 6.75 % 7.0 % 7.25 % 7.50 % 7.75 % 8.0 %

1.0659 1.0678 1.0697 1.0724 1.0751 1.0773 1.0795 1.0817 1.0839

Florida Department of Revenue, Sales and Use Tax on Concession Stands, Page 1

Gross receipts divided by the effective tax rate equals gross sales. Gross receipts minus gross sales equals the tax. Example: $100.00 ÷ 1.0659 = $93.82 gross receipts effective tax rate gross sales $100.00 gross receipts ­ $93.82 gross sales $6.18 TAX DUE

Which Rentals are Taxable?
Rental of Stand ­ The lease, rental, or license to use a concession stand is taxable unless specifically exempt. The concession stand owner (lessor) collects the tax (sales and surtax) from the operator (lessee). The tax is on the lease amount that the lessor receives from the lessee. Real Property Rentals ­ If the concession stand owner is also the operator and places the stand at another person's location, the arrangement between the operator and the location owner is a taxable lease or license to use real property. The location owner (lessor) collects the tax (sales and surtax) from the concession stand operator (lessee). The tax is on the lease amount that the lessor receives from the lessee.

Who Must Register to Collect Tax?
Owners leasing concession stands to an operator are required to register and collect sales tax at the rate of 6 percent plus any local discretionary sales surtax from the operator on the lease amount they receive. Location owners, if not already registered for some other purpose, are required to register and collect sales tax at the rate of 6 percent plus any local discretionary sales surtax on the commission they receive from the operator for the license to use real property. Operators selling taxable items from a concession stand are required to register, collect, and remit sales tax and the applicable discretionary sales surtax.

How to Register
You can register to collect and/or report tax through our Internet site; go to www.myflorida.com/dor. If you do not have Internet access, you can complete a paper Application to Collect and/or Report Tax in Florida (Form DR-1). Obtain Form DR-1 from your local DOR service center or Taxpayer Services.

When Tax is Due
Returns and payments are due on the 1st and late after the 20th day of the month after each collection period. For example, if a sale takes place any time during the month, tax is not due until the 1st of the next month. Returns and payments postmarked after the 20th are late. However, if the 20th falls on a Saturday, Sunday, or federal or state holiday, returns and payments will not be late if they are postmarked on the first business day after the 20th.

Florida Department of Revenue, Sales and Use Tax on Concession Stands, Page 2

If you make tax payments using electronic funds transfer (EFT), you must transmit the funds before 5:00 p.m., ET, on the banking business day before the 20th.

Penalty and Interest
If your returns and payments are not postmarked or hand-delivered on or before the due date, you will owe a late penalty of 10 percent of the amount of tax due. A minimum penalty of $50 is due on late returns, even if no tax is due. Penalty also applies if the return and/or payment is on time but is incomplete. A floating rate of interest applies to underpayments and late payments of tax. We update the rate January 1 and July 1 of each year by using the formula established in section 213.235, Florida Statutes. Current and prior period interest rates are posted on our web site.

Reference Material
Tax Laws ­ Our online Tax Law Library contains statutes, rules, legislative changes, opinions, court cases, and publications. Search the law library for Rules 12A-1.011, 12A-1.037, 12A1.070, 12A-1.080, and 12A-15.010, Florida Administrative Code. Brochures ­ Download these brochures from our "Forms and Publications" page: · Tangible Personal Property Rentals · Commercial Real Property Rentals · Amusement Machines · Vending Machines

For Information and Forms
Information and forms are available on our Internet site at: www.myflorida.com/dor To speak with a Department of Revenue representative, call Taxpayer Services, Monday through Friday, 8 a.m. to 7 p.m., ET, at 800-352-3671. Persons with hearing or speech impairments may call our TDD at 800-367-8331 or 850-922-1115. For a written reply to tax questions, write: Taxpayer Services Florida Department of Revenue 5050 W Tennessee St Bldg L Tallahassee FL 32399-0112

Get the Latest Tax Information
Sign up to get e-mail notices automatically when we post: · · · Tax Information Publications (TIPs). Facts on Tax, a quarterly publication. Proposed rules, notices of rule development workshops, and more.

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Florida Department of Revenue, Sales and Use Tax on Concession Stands, Page 3