Concert tickets in Florida are exempt from sales tax due to a law passed in 1987 that exempts certain recreational and amusement activities from sales tax. This tax exemption applies to a variety of live entertainment events in Florida, including concerts, plays, ballets, musical theater performances, and more.
What is the sales tax exemption for recreational activities in Florida?
Florida Statute 212.04(1)(b) provides a sales tax exemption for “admissions to places of amusement, sport, or recreation, including theaters, performances, museums, exhibitions, shows, and other similar activities.” This exemption was enacted by the Florida legislature in 1987 and has been in effect ever since.
Under this law, the sale of tickets to live entertainment events taking place in Florida are exempt from the state’s general sales tax, as well as any applicable discretionary sales surtax. This can lead to significant savings for consumers buying tickets to concerts, plays, or other live shows in Florida.
What types of events are exempt from sales tax on tickets?
The sales tax exemption on admission tickets applies very broadly to most live entertainment events in Florida. Some of the specific types of events that qualify for the exemption include:
- Concerts of all music genres
- Plays and musicals
- Opera, ballet, and dance performances
- Comedy shows
- Magic shows
- Circuses
- Rodeos
- Races (horse racing, auto racing, etc.)
- Sporting events
- Museums
- Zoos
- Fairs and festivals
Essentially any live entertainment event that takes place at a venue like an arena, theater, concert hall, racetrack, stadium, festival grounds, or other similar facility qualifies for the sales tax exemption in Florida.
Are there any events that don’t qualify for the exemption?
There are a few types of admission tickets that do not qualify for Florida’s recreational sales tax exemption:
- Movie theater tickets
- Sporting events held at schools, colleges, or universities
- Some events at convention centers or hotels
- Admission to nightclubs and drinking establishments
- Admission to shops, attractions at malls or shopping centers
Because movies are not considered live entertainment, movie theater tickets remain subject to sales tax in Florida. Tickets to school and college sporting events are also taxable, as they are not covered under the recreational exemption.
Why did Florida create this sales tax exemption?
Florida enacted the sales tax exemption on recreational activities in 1987 as part of a push to increase tourism spending and bring more entertainment options to the state. By eliminating sales tax on events like concerts and shows, the legislature aimed to make tickets more affordable for Florida residents while also incentivizing more performers and promoters to hold events in Florida.
In addition, the tax exemption helps make Florida a more attractive place for tourists to visit and spend money on entertainment and recreation. Tourists who buy tickets to concerts or theme park admissions while visiting Florida can take advantage of the tax savings.
How much sales tax is exempted on concert tickets in Florida?
Florida’s state sales tax rate is currently 6%. Counties across Florida may also impose discretionary surtax up to an additional 2.5%.
For example, a $100 concert ticket purchased in a county with a 1% discretionary surtax would typically have $7 in sales tax. But with the recreational exemption, the ticket is exempt from all $7 of tax, saving the buyer 7% off the price.
The tax rates in major Florida cities are:
City | Total Sales Tax Rate |
---|---|
Miami | 7% |
Tampa | 7% |
Orlando | 6.5% |
Fort Lauderdale | 6% |
Jacksonville | 7% |
So the sales tax exemption on recreational activities like concerts saves Florida consumers between 6-7% on ticket prices statewide.
Does the tax exemption apply when buying tickets online?
Yes, the sales tax exemption applies to concert tickets bought online for events taking place in Florida. When you purchase tickets through a website for a concert or other show occurring in Florida, sales tax should not be added to your order.
Many ticket retailers automatically apply Florida’s recreational sales tax exemption when you purchase tickets for a Florida event online. However, it’s a good idea to double check that tax was not charged just in case.
Can tourists visiting Florida take advantage of the tax exemption?
Tourists and other non-residents visiting Florida can absolutely take advantage of the sales tax exemption when buying tickets. Whether visitors purchase tickets at the venue’s box office or online ahead of their trip, no sales tax should be applied to concert, play, or sporting event tickets for events they will attend in Florida.
This provides a nice tax-free perk for tourists planning a trip to Florida to see shows or concerts. For big ticket events like major concerts and theme parks, the sales tax savings really add up.
Does the exemption apply at third-party resellers?
Tickets purchased through authorized third-party ticket brokers or resellers should still qualify for Florida’s recreational sales tax exemption. As long as the event is happening in Florida, no sales tax should be charged.
However, if buying tickets through unofficial third parties like ticket scalpers or individuals, the exemption may not always be applied accurately. Purchasers may end up being charged tax improperly by unapproved resellers.
Are local venues and promoters aware of the tax exemption?
Venues, promoters, and other entertainment event organizers in Florida are typically well aware of the sales tax exemption on ticket sales. Most major concert and event venues have systems set up to automatically exempt recreational admission tickets from sales tax when selling them.
However, it’s possible smaller local venues may not have their point-of-sale systems configured properly to apply Florida’s concert ticket tax exemption. Patrons may need to request that tax be removed from their ticket purchase if a seller tries to charge it improperly.
Does the exemption reduce revenue significantly?
Florida misses out on some sales tax revenue due to the recreational exemption. But the benefits of attracting more entertainment spending and tourism likely outweigh the costs.
One estimate from 2020 found Florida forwent about $235 million per year in tax revenue due to the amusement and recreational exemption. While not insignificant, that represents only around 0.5% of Florida’s total sales tax collections annually.
When the exemption was first enacted in the late 1980s, the foregone tax revenue was projected to be approximately $50 million per year.
Could the tax exemption be repealed?
There have been occasional calls from some legislators and policy groups over the years to repeal Florida’s recreational sales tax exemption in order to increase state revenue. However, such efforts have gained little traction in the Florida legislature.
The exemption remains very popular with both consumers and the entertainment industry in Florida. Given the benefits it provides, most experts believe there is little chance the concert ticket tax exemption will be lifted any time soon.
Do other states have similar sales tax exemptions?
Florida is not unique in exempting recreational entertainment tickets from sales tax. Many states provide full or partial sales tax exemptions on admission to live events:
- New York exempts tickets to Broadway shows and other cultural events.
- Nevada exempts tickets for concerts, movies, shows, recreational activities, and more.
- Missouri exempts tickets to some cultural not-for-profit events.
- Minnesota exempts tickets under $5.
- Connecticut exempts tickets $5 and under.
So Florida is joined by many other states that choose to make cultural entertainment more affordable by exempting it from sales tax.
Conclusion
Florida’s sales tax exemption on admission to recreational and amusement activities like concerts, plays, and movies provides a nice tax break on entertainment spending for Florida consumers and visitors alike. Although the state loses out on some sales tax revenue, the exemption helps support Florida’s tourism and entertainment industries. The concert ticket sales tax exemption appears likely to benefit Floridians and tourists enjoying Florida’s cultural attractions for years to come.