Sales from concession stands of food, drinks, tobacco products, and various other items generally are subject to Florida sales tax. Florida sales tax will be imposed at the rate where the concession stand is located. However, there are specific nuances sellers must know. Failure to know these intricacies can lead you to paying the tax out of pocket or collecting tax when no tax is otherwise due!
If the sales price is 10 cents or more, the sale from a concession stand is subject to Florida sales tax. This includes sales at arenas, auditoriums, carnivals, fairs, stadiums, theaters, street corners, and similar places. Included in this general category of sales of food, drinks, and other items being subject to sales tax are items sold at fundraisers and other similar events, regardless of whether the seller is a not-for-profit holding a Florida Consumer’s Certificate of Exemption.
There are several exceptions to this rule of not-for-profits being required to collect sales tax. These exceptions are discussed in more detail below.
Sales or leases of tangible items of personal property will be exempt from Florida sales and use tax if sold by a religious institution (e.g., church or synagogue) having an established place of worship at which nonprofit religious services/activities are regularly conducted. The Florida Department of Revenue requires the religious institution to hold a Florida Consumer’s Certificate of Exemption to sell the items exempt from Florida sales tax.
Additionally, sales of food or drink by a qualified veterans’ organization in connection with the organization’s customary activities to members of the organization will be exempt from Florida sales and use tax. A veterans’ organization means a nationally chartered or recognized veterans’ organization, including but not limited to, the American Legion, Veterans of Foreign Wars of he United States, Florida chapters of the Paralyzed Veterans of American, Catholic War Veterans of the U.S.A., Jewish War Veterans of the U.S.A., and the Disabled American Veterans, Department of Florida, Inc. These organizations must hold a current exemption from federal income tax under Section 501(c)(4) or (19) of the Internal Revenue Code of 1986. The Florida Department of Revenue requires the veterans’ organization to hold a Florida Consumer’s Certificate of Exemption to sell the items exempt from Florida sales tax.
A not-for-profit may make sales at a concession stand exempt from Florida sales tax. To do so, the organization must possess a Florida Consumer’s Certificate of Exemption, hold no more than two fundraising events during any twelve-month period, each event is for fewer than thirty-one consecutive days, the location of the concession stand is not on the same premises of other businesses required to collect Florida sales tax, and Florida sales tax is paid on the cost of the items sold at the concession stand.
Fundraisers by schools offering grades K through 12 as well as the respective parent teacher organization/association may sell items exempt from tax as part of a fundraiser if tax is paid on the items from the vendors when purchased by the school or parent teach organization/association. The same is true of school support organizations, which have a sole purpose of raising funds to support extracurricular activities at a public, parochial, or nonprofit school teaching students in grades K through 12. The Florida Department of Revenue requires the schools or parent teach organization/association to hold a Florida Consumer’s Certificate of Exemption to qualify for this provision.
With the above-noted exceptions, it is critical for concession stands to be mindful of the proper way to calculate Florida sales tax. If Florida sales tax is to be in addition to the price charged and will be itemized, Florida sales tax must be calculated taking into account the bracket system. A more complete discussion of the bracket system may be found in the articles mentioned at the end of this article. If it is impractical to separately state the Florida sales tax, the seller may include the Florida sales tax in the price charged and then back into the amount of Florida sales tax collected.
To get to the amount of Florida sales tax collected, you must take your total receipts from the charges divide by the tax rate divisor (see below) associated with the county where the concession stand is located. This figure will be your gross sales. Then, subtract the computed gross sales from the total receipts. The resulting amount will be the amount of Florida sales tax collected and is payable to the Florida Department of Revenue.
The current divisors are as follows:
- If there is no county sales tax, then the divisor is 1.0659.
- If the county sales tax is 0.5%, then the divisor is 1.0697.
- If the county sales tax is 1.0%, then the divisor is 1.0751.
- If the county sales tax is 1.5%, then the divisor is 1.0795.
- If the county sales tax is 2.0%, then the divisor is 1.0839.
- If the county sales tax is 2.5%, then the divisor is 1.0883.
About the author: David Brennan is an associate attorney with Moffa, Sutton, & Donnini, P.A. His primary practice area is multistate tax controversy. David received a B.S. in Accounting and Finance, with a minor in Computer Science, from Florida State University. He worked as an accountant for a CPA firm before attending law school at Regent University. He received his Juris Doctorate in 2013 and was licensed to practice law in Florida in the same year. In 2015, David earned his Masters of Laws in Taxation from Boston University. As a former senior attorney for the Florida Department of Revenue, he handled informal protest appeals, among other things. You can read his BIO HERE.
At the Law Office of Moffa, Sutton, & Donnini, PA, our primary practice area is state and local taxes, with a very heavy emphasis in Florida sales and use tax. We have defended Florida businesses against the Florida Department of Revenue since 1991 and have over 100 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.
AUTHORITY
Form GT-800003, Sales and Use Tax on Concession Sales
ADDITIONAL RESOURCES
FLORIDA SALES TAX BRACKET SYSTEM, published April 30, 2020, by David Brennan, Esq.
FL DEPARTMENT OF REVENUE PETITION FOR ADMINISTRATIVE HEARING, published April 14, 2020, by Jeanette Moffa, Esq.
FLORIDA SALES TAX INFORMAL WRITTEN PROTEST, published November 17, 2018, by James Sutton, CPA, Esq.
FLORIDA SALES TAX - COUPONS V. DISCOUNTS, published October 30, 2018, by David Brennan, Esq.
FLORIDA SALES TAX - VOLUNTARY DISCLOSURE PROGRAM, published April 9, 2018, by Jeanette Moffa, Esq.
FLORIDA USE TAX AUDIT LETTER?, published June 14, 2015, by James Sutton, CPA, Esq. and Jerry Donnini, Esq.
GOING TO JAIL FOR NOT PAYING FLORIDA SALES TAX?, published November 3, 2013, by James Sutton, CPA, Esq.