Sales and Use Tax TAA 14A-007 Painting Services/Instruction
QUESTION: WHETHER THE PAINTING SERVICES/INSTRUCTIONS ARE SUBJECT TO FLORIDA
SALES TAX.
ANSWER: TAXPAYER’S PAINTING SERVICES/INSTRUCTIONS ARE NOT SUBJECT
TO FLORIDA SALES TAX.
March 14, 2014
Re: Subject: Technical Assistance Advisement – TAA 14A-007 Sales
and Use Tax – Painting Services/Instruction Section 212.05, Florida
Statutes (F.S.) XXX (“Taxpayer”)
Dear XXX:
This is in response to your letter received XXX, requesting this Department’s
issuance of a Technical Assistance Advisement (“TAA”) pursuant
to section 213.22, F.S., and Rule Chapter 12-11, F.A.C., concerning painting
instructions provided at a gathering. An examination of your letter has
established you have complied with the statutory and regulatory requirements
for issuance of a TAA. Therefore, the Department is hereby granting your
request for a TAA.
Facts
Taxpayer is requesting determination from the Department on whether painting
art instructions provided at a gathering at someone’s home are subject
to Florida sales tax. The Taxpayer states the business is a 100% mobile
painting instruction party. At a typical party, the Taxpayer will teach
12 guests how to paint at $30 per person for a total cost of $360. The
scheduling and payments are verbal, and there is no written contract between
the Taxpayer, hostess, and guests. Each guest is responsible for their
own payment. The hostess has selected a painting from the Taxpayer’s
gallery, which each guest will paint during the painting party. The Taxpayer
will bring the paint supplies, for which Taxpayer will have paid the tax.
Taxpayer will setup each painter’s station, which will include paint,
brushes, easel, canvas, cleaning jar, and apron. Each guest is required
to pay when the party commences. The party will last approximately two
hours, and during the two hours, Taxpayer will provide step-by-step instructions
to each guest on how to create a painting. At the end of the party, Taxpayer
will keep the supplies, while each guest is allowed to keep the painting
each of them created during the party.
Requested Advisement
Whether the painting services/instructions are subject to Florida sales tax.
Applicable Authority and Discussion
Section 212.05, F.S., states, in part, “It is hereby declared to
be the legislative intent that every person is exercising a taxable privilege
who engages in the business of selling tangible personal property at retail
in this state, including the business of making mail order sales, or who
rents or furnishes any of the things or services taxable under this chapter,
or who stores for use or consumption in this state any item or article
of tangible personal property as defined herein and who leases or rents
such property within the state….”
Here, Taxpayer is not required to charge tax on their service fee because
Taxpayer is not selling tangible personal property.
Concluding Statement
Taxpayer’s painting service/instructions are not subject to Florida
sales tax.
This response constitutes a Technical Assistance Advisement under section
213.22, F.S., which is binding on the Department only under the facts
and circumstances described in the request for this advice as specified
in section 213.22, F.S. Our response is predicated on those facts and
the specific situation summarized above. You are advised that subsequent
statutory or administrative rule changes, or judicial interpretations
of the statutes or rules, upon which this advice is based, may subject
similar future transactions to a different treatment than that expressed
in this response.
You are further advised that this response, your request and related backup
documents are public records under Chapter 119, F.S., and are subject
to disclosure to the public under the conditions of section 213.22, F.S.
Confidential information must be deleted before public disclosure. In
an effort to protect confidentiality, we request you provide the undersigned
with an edited copy of your request for Technical Assistance Advisement,
the backup material, and this response, deleting names, addresses, and
any other details which might lead to identification of the taxpayer.
Your response should be received by the Department within 15 days of the
date of this letter.
Sincerely,
Manshi Shah Senior Attorney Technical Assistance and Dispute Resolution
850-717-7312
Record ID: 155452