TAX NEWS - 2010

Changes to Sales Tax on Admissions - Florida Tax

EVENTS SPONSORED BY GOVERNMENTAL ENTITIES, SPORTS AUTHORITIES, AND SPORTS COMMISSIONS ARE NOW EXEMPT

Effective May 28, 2010, no tax is due on admissions to an event sponsored by a governmental entity, sports authority, or sports commission when the event is held in a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or publicly-owned recreational facility. The exemption is reinstated after being repealed effective July 1, 2009. This exemption only applies if:

- 100 percent of the funds at risk belongs to the sponsor;
- 100 percent of the risk of success or failure lies with the sponsor; and
- Student or faculty talent is not exclusively used at the event.

The terms "sports authority" and "sports commission" mean a nonprofit organization, exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, that contracts with a county or municipal government for the purpose of promoting and attracting sports-tourism events to the community.


CERTAIN GAMES, EVENTS, AND CONTESTS OF THE NATIONAL BASKETBALL ASSOCIATION, NATIONAL HOCKEY LEAGUE, MAJOR LEAGUE BASEBALL, AND THE NATIONAL FOOTBALL LEAGUE

Effective May 28, 2010, no tax is due on admissions to:

- National Football League Pro Bowl;
- National Hockey League All-Star Game;
- Major League Baseball Home Run Derby held before the Major League Baseball All-Star Game;
- National Basketball Association All-Star Game;
- National Basketball Association Rookie Challenge;
- National Basketball Association Celebrity Game;
- National Basketball Association 3-Point Shooting Contest; and
- National Basketball Association Slam Dunk Challenge.

Reference:  Sections 212.04(2)(a)2.b. and 4., Florida Statutes (2010); Chapter 2010-147, Laws of Florida (Section 6, CS/SB 1752, 2nd Eng.)