Sales and Use Tax on Concession Stands

What concession stand owners and operators need to know.

What is Taxable?

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 tax, unless specifically exempt. Civic organizations and booster clubs are not exempt, and therefore must collect tax on sales made from concession stands.

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 concessionaire 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 concessionaire who sells souvenirs, novelties, or other event-related products at a convention hall, exhibition hall, auditorium, stadium, or theater; 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 is not required to collect tax on the sales of natural fruit and vegetable juices if it is not required to be licensed by the Department of Business and Professional Regulation. However, if soft drinks or other taxable items are sold, tax must be collected on the taxable items.

Religious institutions that regularly conduct nonprofit religious services and activities at established physical places of worship are not required to collect tax on the taxable items sold at their concession stands.

Fund-raising 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, tax should be paid 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 separately state the tax, the following rate may be used:

Gross receipts divided by the effective tax rate equals gross sales. Gross receipts minus gross sales equals the tax due.

Example:

Step 1. $100.00 divided by 1.0659 equals $93.82

Step 2. $100.00 (gross receipts) minus $93.82 (gross sales) equals $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 tax is collected by the concession stand owner (lessor) from the operator (lessee) and is based 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 tax is collected by the location owner (lessor) from the concession stand operator (lessee) and is based 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 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 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.

How to Register

You can register to collect and/or report tax via the Department's Internet site. Go to www.myflorida.com/dor and click on e-Services. 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 one of the contacts listed below.

Reference Material

Tax Laws

Call Taxpayer Services to request a copy of Rules 12A-1.011, 12A-1.037, 12A-1.070, 12A-1.080, and 12A-15.010, Florida Administrative Code. Tax laws are also available on the Department's Florida Tax Law Library.

Brochures

The following brochures are available from your local DOR service center, the DOR Distribution Center, or Taxpayer Services:

• Tangible Personal Property Rentals
• Commercial Real Property Rentals
• Amusement Machines
• Vending Machines

For Information and Forms

Persons with hearing or speech impairments may call the TDD at 800-367-8331 or 850-922-1115.

• Order multiple copies of forms from our Internet site, or
• Mail form requests to:
  Distribution Center
  Florida Department of Revenue
  168A Blountstown Hwy
  Tallahassee FL 32304-3761