TAX NEWS - 2010

Exemption from Commercial Rent Tax - Florida Rent Tax

Exemption from Commercial Rent Tax for Persons Providing Telecommunications, Data Systems Management, or Internet Services at Convention Halls, Civic Centers, and Meeting Spaces at Public Lodging Establishments


An exemption is added to section (s.) 212.031, Florida Statutes (F.S.), for persons providing telecommunications, data systems management, or Internet services at a publicly or privately owned convention hall, civic center, or meeting space at a public lodging establishment as defined in s. 509.013, F.S. This exemption applies only to the portion of the rental, lease, or license payment that is based on a percentage of sales, revenue sharing, or royalty payments. The exemption does not apply to any rental, lease, or license payment based on a fixed price.

Examples include:

A third party provides and manages the telephone services for a convention center. Individuals who use the convention center pay the third party for the use of the telecommunications, including applicable communications services tax under Chapter 202, F.S. Any percentage of the sales paid from the third party to the convention center for the use by the third party of the real property is not subject to tax under s. 212.031, F.S.

A third party provides Internet access in a hotel's meeting rooms or ballrooms that are used by hotel guests. The hotel guests are charged for Internet access. Any percentage of the sales paid from the third party to the hotel for the use by the third party of the real property is not subject to tax under s. 212.031, F.S.

This exemption is retroactive for these types of payments, but does not create a right to a refund of any tax paid before July 1, 2010.

Reference:  Section 212.031(1)(a)14., Florida Statutes, as created by Chapter 2010-147, Laws of Florida (Section 5, SB 1752).