Sales Tax Articles
Sales Tax State Activity Update - February 2006
Florida Offers the Keys to Taxation of Roadside Advertising
The question posed to the Florida Department of Revenue was, "Is an agency's agreement with the State of Florida Department of Transportation for toll plaza advertising and Road Ranger sponsorship subject to Florida's sales and use tax?"
The Department's response was pursuant to Section 212.02(10)(i), F.S. It states in part that use of the property must be granted within the guidelines provided by the License Agreement. In this case the Agency may make use of the property in conducting its intended business. Accordingly, the payments made for the placement of advertising materials on the toll booth structures are taxable payments made in exchange for a license to use real property.
Charges made by buses, taxicabs, and similar vehicles for advertising space are exempt from sales tax. Therefore, payments made for the placement of advertising materials on Road Ranger vehicles would not be taxable payments.
View the full text on the State of Florida Department of Revenue Website.
(Technical Assistance Advisement, No. 05A-050, Florida Department of Revenue, 12/7/2005)
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