SUMMARY Facts: The taxpayer is a Florida Limited Liability Company organized in the state of Florida.

The taxpayer will operate a gaming and entertainment ship, which will operate out of the Port Authority, Florida. Question: Is the taxpayer eligible for the partial exemption provided for in s. 212.08(8), F.S., on the purchase of the vessel used in the operation of the cruise to nowhere? Answer: Yes. Pursuant to the recent Florida Supreme Court case, Department of Revenue vs. New Sea Escape Cruises, Ltd., 894 So.2d 954 (Fla. 2005), the taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S. Question: Are gaming receipts collected while in international waters subject to sales tax in Florida? Answer: Gaming receipts do not come within the purview of Chapter 212, F.S., and are therefore not subject to sales tax, whether or not the sale occurs outside Florida waters. Question: Are bar and restaurant receipts collected while in international waters and bar and restaurant receipts collected while in Florida waters subject to sales tax? Answer: Where food or beverage is sold to customers, such sales are taxable when sold in Florida waters and are exempt when sold outside Florida waters. The courts have clearly established that, when sales are made extra-territorially, it is beyond the power of the State of Florida to tax such sales. Question: Are receipts from boarding fees subject to sales tax? Answer: The charge for a boarding pass or ticket sold to a customer is the price of an admission. Such charge is within the definition provided in s. 212.02(1), F.S., and is therefore subject to sales tax. Question: Is the reconstruction and retrofit of vessel performed out of the country or in Florida eligible for the partial exemption in s. 212.08(8), F.S.? Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the reconstruction and retrofit of the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. Question: Is gaming equipment purchased and installed out of the country or in Florida eligible for the partial exemption provided for in s. 212.08(8), F.S.? Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase and installation of gaming equipment purchased outside Florida or

2 in Florida for use on the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. Question: Is the purchase of all other tangible personal property purchased in or imported into Florida eligible for the partial exemption in s. 212.08(8), F.S.? Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of all other tangible personal property purchased in or imported into Florida for use on the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. Question: Are the purchases of all other nonconsumable or consumable tangible personal property purchased in or imported into Florida eligible for the partial exemption in s. 212.08(8), F.S.? Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of all other nonconsumable or consumable tangible personal property purchased in or imported into Florida for use on the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. Question: Is the purchase of dyed diesel fuel used on the ship in interstate and foreign commerce to transport persons in interstate and foreign commerce eligible for the partial exemption in s. 212.08(8), F.S.? Answer: Yes. The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of dyed diesel fuel purchase for use on the ship used in interstate and foreign commerce to transport persons in interstate and foreign commerce. Question: Is the purchase of food and beverage for resale on the ship while in Florida or International waters subject to the provisions within s. 212.07, F.S.? Answer: Yes. The resale provisions within s. 212.07, F.S., would apply to the purchase of food and beverages purchased for resale on the board the vessel. Question: Are payments made under the 10-year Berthing Agreement with Port Authority subject to tax? Answer: No. Section 212.031(1)(a)8., F.S., excludes real property used at a port authority exclusively for the purpose of loading and unloading passengers and cargo onto or from such a vessel . The facts provide that the taxpayers lease is for real property located at a port authority, as defined in section 315.02(2), F.S. Question: Can the taxpayer obtain a refund of sales and use tax paid on the purchase of items entitled to the partial exemption in s. 212.08(8), F.S.?

3 Answer: Yes. The taxpayer can obtain a refund of tax that it may have paid at the time of purchase or lease on purchases or leases that were entitled to the partial exemption in s. 212.08(8), F.S., as provided in Rule 12A-1.0641(7), F.A.C.

August 11, 2011

XXX XXX XXX Re: Technical Assistance Advisement 11A-024 XXX Sales and Use Tax Cruises to Nowhere Sections 212.03(6), 212.031(1)(a)8.a., 212.05, 212.07(1)(b), (9), 212.08(8)(a), and 315.02(2), F.S. Rule 12A1-0641(7), F.A.C.

Dear This is in response to your letter dated June 17, 2011, requesting this Departments issuance of a Technical Assistance Advisement (TAA) pursuant to Section 213.22, F.S., and Rule Chapter 12-11, Florida Administrative Code (F.A.C.), concerning the above referenced matter. 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 The taxpayer is a Florida Limited Liability Company organized in the state of Florida. The taxpayer will operate a gaming and entertainment ship, which will operate out of the XXX Port Authority, Florida. The taxpayer was formed for the sole purpose of operating the gaming and entertainment ship featuring the cruise to nowhere concept. In December, 2010, the taxpayer purchased a ship and began renovation and refitting it. The ship was purchased for use exclusively in non-Florida waters to transport person in foreign and interstate commerce and not for sport or pleasure fishing. The taxpayer has secured a berthing agreement with XXX Port Authority (the Port), which agreement grants the taxpayer the right to dock an entertainment and gaming ship at the Port. The ship will leave the Port each day at 11 am and 7 pm and will return to the port at 4pm and 12 am. After leaving the Port, the ship will travel to a distance of more than 3.5 nautical miles off the cost of Florida, where it will continue cruising or lay anchor, depending on weather conditions.

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The taxpayer will offer gaming and entertainment accommodations aboard the ship, and will sell food and beverage to its passengers. Requested Advisement & Taxpayer Position Taxpayer requests the Department issue a binding Technical Assistance Advisement on the taxable status of the following issues. 1. Gaming receipts collected while in international waters.

The taxpayer submits that gaming receipts are not subject to sales tax, because gaming receipts do not come within the purview of Chapter 212, F.S., whether or not the sale occurs outside Florida waters. 2. Bar and restaurant receipts collected while in international waters. The taxpayer submits that food or beverages are not subject to sales tax when sold by a restaurant or bar operated within the vessel while outside Florida territorial waters, because the courts have established that, when sales are made extra-territorially, it is beyond the power of the State of Florida to tax such sales. 3. Bar and restaurant receipts collected while in Florida waters. The taxpayer submits that food or beverages are subject to tax when sold by a restaurant or bar operated within the vessel while in Florida territorial waters. The tax is to be applied to the gross sale amount. The rate applied is the state tax rate of 6% plus any additional county discretionary sales surtax (DSS). 4. Receipts from boarding fees. The taxpayer submits that charges made by a vessel carrying passengers to international waters where passengers cannot disembark from the vessel at points other than the origination point (cruises to nowhere) are subject to sales tax. 5. The purchase of the ship and if taxable, is it subject to the apportionment factor as provided in s. 212.08(8), F.S. The taxpayer submits it is eligible for the partial exemption provided in s. 212.08(8), F.S., pursuant to the Florida Supreme Court Case of Department of Revenue v. New Sea Escape Cruises, Ltd. The ship will be used in interstate and foreign commerce to transport persons in interstate and foreign commerce and is subject to sales and use tax to the extent provided in s. 212.08(8), F.S. Since the ship will not operate in the canals or waterways of Florida, the ship will not have any Florida mileage for calculation of the apportionment factor per Rule 12A-1.0641(2)(b), F.A.C., and therefore, no sales or use tax is due in connection with the taxpayers purchase or use of the ship in Florida.

5 6. The reconstruction and retrofit of the ship will be eligible for the partial exemption set out in Section 212.08(8), F.S., per Department of Revenue v. New Sea Escape Cruises, Ltd. Taxpayer submits that the retrofit costs, including the cost of materials and labor, would be exempt from Florida sales and use tax per Section 212.08(8), F.S. Since the ship will not operate in the canals or waterways of Florida, the ship will not have any Florida mileage for calculation of the apportionment factor per Rule 12A-1.0641(2), F.A.C., and therefore, no sales or use tax is due in connection with the taxpayers purchases in connection with the reconstruction and retrofit of the ship. 7. Gaming equipment purchased and installed on the ship will be eligible for the partial exemption set out in Section 212.08(8), F.S, pursuant to the Florida Supreme Court case of Department of Revenue v. New Sea Escape Cruises, Ltd. The taxpayer submits that the gaming equipment is exempt from Florida sales and use tax per Section 212.08(8), F.S., pursuant to the Florida Supreme Court case of Department of Revenue v. New Sea Escape, Ltd. Since the ship will not operate in the canals or waterways of Florida, the ship will not have any Florida mileage for calculation of the apportionment factor per Rule 12A-1.0641(2), F.A.C., and therefore, no sales or use tax is due in connection with the taxpayers purchases of the gaming equipment installed on the ship. 8. The purchase of all other tangible personal property purchased and imported into Florida and the installation labor performed in Florida when the tangible personal property becomes a component part of the ship. The taxpayer submits that such items are exempt from Florida sales and use tax per Section 212.08(8), F.S., pursuant to the Florida Supreme Court case of Department of Revenue v. New Sea Escape, Ltd. Since the ship will not operate in the canals or waterways of Florida, the ship will not have any Florida mileage for calculation of the apportionment factor per Rule 12A-1.0641(2), F.A.C., and therefore, no sales or use tax is due in connection with the taxpayers purchases of other tangible personal property that will become a component of the ship. 9. The purchase of all other nonconsumable tangible personal property purchased in or imported into Florida which is used on the ship during the cruise to nowhere but does not become a component part of the ship. The taxpayer submits that such items are exempt from Florida sales and use tax per Section 212.08(8), F.S., pursuant to the Florida Supreme Court case of Department of Revenue v. New Sea Escape, Ltd. Since the ship will not operate in the canals or waterways of Florida, the ship will not have any Florida mileage for calculation of the apportionment factor per Rule 12A-1.0641(2), F.A.C., and therefore, no sales or use tax

6 is due in connection with the taxpayers purchase of other nonconsumable tangible personal property used on the ship during the cruise to nowhere that will not become a component of the ship. 10. The purchase of all other consumable tangible personal property which is used on the ship during the cruise to nowhere. The taxpayer submits that such items are exempt from Florida sales and use tax per Section 212.08(8), F.S., pursuant to the Florida Supreme Court case of Department of Revenue v. New Sea Escape, Ltd. Since the ship will not operate in the canals or waterways of Florida, the ship will not have any Florida mileage for calculation of the apportionment factor per Rule 12A-1.0641(2), F.A.C., and therefore, no sales or use tax is due in connection with the taxpayers purchase of all other items of consumable tangible personal property which will be on the ship during the cruise to nowhere. 11. The purchases of dyed diesel fuel for use on the ship during the cruise to nowhere. The taxpayer submits that any dyed diesel fuel purchased for use on the ship would be exempt from sales and use tax per Section 212.08(8), F.S., pursuant to the Florida Supreme Court case of Department of Revenue v. New Sea Escape, Ltd. Since the ship will not operate in the canals or waterways of Florida, the ship will not have any Florida mileage for calculation of the apportionment factor per Rule 12A-1.0641(2), F.A.C., and therefore, no sales or use tax is due in connection with the taxpayers purchase of dyed diesel fuel used in the operation of the ship. 12. If the taxpayer has paid Florida sales or use tax on the purchase of any item discussed in items #5, 6, 7, 8, 9, 10 and 11 above, the taxpayer may obtain a refund of such tax. The taxpayer submits that it may obtain a refund of tax that it may have paid at the time of the purchase or lease on purchases or leases of items discussed in items #5, 6, 7, 8, 9, 10 and 11 above, per Rule 12A-1.0641(2)(b), F.A.C. 13. The purchase of food and beverages for resale on the ship while in Florida and international waters. The taxpayer submits that food and beverages purchased to prepare and sell for immediate consumption, while in Florida waterways or outside of Florida waterways is exempt from sales and use tax as a sale for resale, pursuant to Section 212.09, F.S. 14. The payments made under the berthing agreement with the Port. The lease or rental of docking or storage spaces for boats at boat docks or marinas is taxable under s. 212.03(6), F.S. However, the taxpayer submits that it is eligible for the exemption provided in s. 212.08(8), F.S. The vessel will be used in interstate and foreign commerce to transport persons in interstate and foreign commerce and is subject to sales and use tax to the extent provided in s. 212.08(8), F.S. Since the vessel will not operate in

7 the canals or waterways of Florida, the vessel will not have any Florida mileage for calculation of the apportionment factor per Rule 12A-1.0641(2)(b), F.A.C., and therefore no tax is due. Applicable Authority Section 212.03(6), F.S., provides: It is the legislative intent that every person is engaging in a taxable privilege who leases or rents parking or storage spaces for motor vehicles in parking lots or garages, who leases or rents docking or storage spaces for boats in boat docks or marinas, or who leases or rents tie-down storage spaces for aircraft at airports. For the exercise of this privilege, a tax is hereby levied at the rate of 6 percent on the total rental charged. Section 212.031(1)(a)8.a., F.S., provides, in part: (1)(a) It is declared to be the legislative intent that every person is exercising a taxable privilege who engages in the business of renting, leasing, letting, or granting a license for the use of any real property unless such property is: 8.a. Property used at a port authority, as defined in s. 315.02(2), exclusively for the purpose of oceangoing vessels or tugs docking, or such vessels mooring on property used by a port authority for the purpose of loading and unloading passengers or cargo onto or from such a vessel, or property used at a port authority for fueling such vessels, or to the extent that the amount paid for the use of any property at the port is based on the charge for the amount of tonnage actually imported or exported through the port by a tenant. Section 212.05, F.S., provides, 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 . . . . (1) For the exercise of such privilege, a tax is levied on each taxable transaction or incident, which tax is due and payable as follows: (a)1.a. At the rate of 6 percent of the sales price of each item or article of tangible personal property when sold at retail in this state, computed on each taxable sale for the purpose of remitting the amount of tax due the state, and including each and every retail sale. ******

(b) At the rate of 6 percent of the cost price of each item or article of tangible personal property when the same is not sold but is used, consumed, distributed, or stored for use or consumption in this state . . . . (c) At the rate of 6 percent of the gross proceeds derived from the lease or rental of tangible personal property, as defined herein . (d) At the rate of 6 percent of the lease or rental price paid by a lessee or rentee, or contracted or agreed to be paid by a lessee or rentee, to the owner of the tangible personal property. Section 212.07(1)(b), F.S., provides in pertinent part: A resale must be in strict compliance with s. 212.18 and the rules and regulations, and any dealer who makes a sale for resale which is not in strict compliance with s. 212.18 and the rules and regulations shall himself or herself be liable for and pay the tax. Any dealer who makes a sale for resale shall document the exempt nature of the transaction, as established by rules promulgated by the department, by retaining a copy of the purchasers resale certificate. Section 212.08(8)(a), F.S., provides in part: The sale or use of vessels and parts thereof used to transport persons or property in interstate or foreign commerce is subject to the taxes imposed in this chapter only to the extent provided herein. . . . The basis of the tax is the ratio of intrastate mileage to interstate or foreign mileage traveled by the vessels which were used in interstate or foreign commerce and had at least some Florida mileage during the previous fiscal year. This ratio shall be applied each month to the total Florida purchases which are used in Florida to establish that portion of the total used and consumed in interstate movement and subject to tax at the applicable rate. Further, paragraph (c) of the statute provides: It is the intent of the Legislature that neither subsection (4) nor this subsection shall be construed as imposing the tax provided by this chapter on vessels used as common carriers, contract carriers, or private carriers, engaged in interstate or foreign commerce, except to the extent provided by the pro rata formula provided in subsection (4) and in paragraph (a). Rule 12A-1.0641, F.A.C., tracks the language of section 212.08(8), F.S., regarding the proration of tax for vessels and parts thereof used to transport persons or property in interstate or foreign commerce. The courts have clearly established that, when sales are made extra-territorially, it is beyond the power of the State of Florida to tax such sales. See Department of Revenue v. Kelly Boat Service, Inc., 324 So.2d 651 (Fla. 1st DCA 1976); and

9 Department of Revenue v. Pelican Ship Corporation, 257 So.2d 56 (Fla. 1st DCA 1972), cert. denied, 262 So.2d 682. Read in its entirety and considering its basic purpose, the law is intended to tax as completely within its sphere as organic provisions allow. L.B. Smith Aircraft Corporation v. Green, 94 So.2d 832, 836 (Fla. 1957). The purpose of the tax exemption is to prevent Florida from running afoul of the U.S. Commerce Clause by exceeding its powers to tax interstate or foreign commerce. Taxing cruise to nowhere cruises is not an attempt to regulate or discriminate against interstate or foreign commerce. See Oklahoma Tax Commn v. Jefferson Lines, Inc., 115 S.Ct. 1331 (1995). In Oklahoma Tax Commission v. Jefferson Lines, Inc., supra, the United States Supreme Court held that Oklahomas sales tax on the sale of bus rides through several States did not violate the Commerce Clause. The Court stated in part: Here, in contrast, the tax falls on the buyer of the services, who is no more subject to double taxation on the sale of these services than the buyer of goods would be. The taxable event comprises agreement, payment, and delivery of some of the services in the taxing State; no other State can claim to be the site of the same combination. The economic activity represented by the receipt of the ticket for consumption in the form of commencement and partial provision of the transportation thus closely resembles Berwind-Whites delivery of goods within the State upon their purchase for consumption, especially given that full consumption or use of the purchased goods within the taxing State has never been a condition for taxing a sale of those goods. Although the taxpayer seeks to discount these resemblances by arguing that sale does not occur until delivery is made, nothing in our case law supports the view that when delivery is made by services provided over time and through space a separate sale occurs at each moment of delivery, or when each States segment of transportation state-by-state is complete. The analysis should not lose touch with the common understanding of a sale, the combined events of payment for a ticket and its delivery for present commencement of a trip are commonly understood to suffice for a sale. In Department of Revenue v. Pelican Ship Corporation, supra, the Florida sales tax on admissions was due on the $6.00 fee charged to patrons of fishing vessels which was paid at dockside. The court reasoned that even if the fee was not collected until after the vessel was beyond territorial limits of the State, the obligation to pay such fee arose when the patron boarded the vessel at dockside and thus the transaction was within the States taxing jurisdiction. Also, in the recent Supreme Court case, Department of Revenue v. New Sea Escape Cruises, Ltd., 894 So.2d 954 (Fla. 2005), the Court ruled that cruises-tonowhere operations that leave the State of Florida are foreign commerce, not

10 intrastate, and thus the partial exemption set forth in Section 212.08(8)(a), F.S., should be applied. Additionally, the Court also held that there is no basis in either the statutes or the Department of Revenues implementing regulations to parse a carriers operations or a vessels voyages, and deny a carrier who engages in foreign commerce, as well as intrastate commerce, the partial exemption for its intrastate commerce operations. Therefore, the court approved the decision to apply the partial tax exemption to cruise-to-nowhere operations, and disapproved the decision of the First District in Dream Boat, Inc. v. Department of Revenue, 28 Fla. L. Weekly D837 (Fla. 1st DCA March 27, 2003). Discussion & Response Gaming Receipts Collected While in International Waters Gaming receipts do not come within the purview of Chapter 212, F.S., and are therefore not subject to sales tax, whether or not the sale occurs outside Florida waters. See Department of Revenue v. Kelly Boat Service, Inc., supra. Bar and Restaurant Receipts Collected While in International Waters and Bar and Restaurant Receipts Collected While in Florida Waters Where food or beverage is sold to customers, such sales are taxable when sold in Florida waters and are exempt when sold outside Florida waters. The courts have clearly established that, when sales are made extra-territorially, it is beyond the power of the State of Florida to tax such sales. See Department of Revenue v. Kelly Boat Service, Inc., supra, and Department of Revenue v. Pelican Ship Corporation, supra. Receipts From Boarding Fees During a cruise to nowhere, the taxpayer is not engaged in transportation. Sales tax is not imposed on the charge for transporting a person, since that charge does not come within the statutory definition of an admission, nor is it specifically enumerated as a taxable service within Chapter 212, F.S. The line of authority interpreting section 212.04(1), F.S., stands for the proposition that vessels engaged in cruises to nowhere are not engaged in transportation, because the charge for admitting a person aboard was determined to be a taxable admission. See Department of Revenue v. Kelly Boat Service, Inc., supra, and Department of Revenue v. Pelican Ship Corporation, supra. Unless specifically exempted by the Legislature, all sales of admissions, based on the charge for admitting a person to a place of amusement, sport, or recreation, are taxable pursuant to s. 212.04, F.S. Therefore, the charge for a boarding pass or ticket sold to a customer is the price of an admission. Such charge is within the definition provided in s. 212.02(1), F.S., and is therefore subject to sales tax. See Oklahoma Tax Commn v. Jefferson Lines, Inc., supra.

11 Purchase of the Vessel The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. See Department of Revenue v. New Sea Escape Cruises, Ltd., supra. Reconstruction and Retrofit of the Vessel The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the reconstruction and retrofit of the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. See Department of Revenue v. New Sea Escape, Ltd., supra. Gaming Equipment Purchased and Installed on the Vessel The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase and installation of gaming equipment purchased for use on the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. See Department of Revenue v. New Sea Escape, Ltd., supra. Purchase of Other Tangible Personal Property Purchased or Imported into Florida and the Installation and Labor Performed in Florida When the Tangible Personal Property Becomes a Component Part of the Vessel The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on such items when such items become a component part of the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. See Department of Revenue v. New Sea Escape, Ltd., supra. Purchase of All Other Nonconsumable or Consumable Tangible Personal Property Purchased In or Imported Into Florida The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of all other nonconsumable or consumable tangible personal property purchased in or imported into Florida for use on the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. See Department of Revenue v. New Sea Escape, Ltd., supra. Purchase of Dyed Diesel Fuel For Use on the Vessel The taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., on the purchase of dyed diesel fuel for use on the vessel used in interstate and foreign commerce to transport persons in interstate and foreign commerce. See Department of Revenue v. New Sea Escape, Ltd., supra.

12 Purchase of Food and Beverages for Resale on the Vessel While in Florida or International Waters The resale provisions within s. 212.07(9), F.S., would apply to the purchase of food and beverages purchased for resale on board the vessel. Payments Made Under the Berthing Agreement with Canaveral Port Authority Section 212.031(1)(a), F.S., provides that the business of renting, leasing, letting, or granting a license fee for the use of any real property is a taxable privilege. However, section 212.031(1), F.S., provides the following in part: (a) unless such property is: *** 8.a. Property used at a port authority, as defined in s. 315.02(2), exclusively for the purpose of oceangoing vessels or tugs, docking, or such vessel mooring on property used by a port authority for the purpose of loading or unloading passengers or cargo onto or from such a vessel, or property used at a port authority for fueling such vessels . (Emphasis Added.) Section 212.031, F.S., imposes tax on the total rent or license fee charged for such real property by the person charging or collecting the rental or license fee. However, section 212.031(1)(a)8., F.S., excludes real property used at a port authority exclusively for the purpose of loading and unloading passengers and cargo onto or from such a vessel . The facts provide that the taxpayers lease is for real property located at a port authority, as defined in section 315.02(2), F.S.; therefore, under this lease, the real property exclusively used for the purpose of loading and unloading passengers or cargo onto or from the vessel is excluded from sales tax. Refund of Sales or Use Tax Paid on the Purchase of Items Entitled to the Partial Exemption in s. 212.08(8), F.S. The taxpayer may obtain a refund of tax that it may have paid at the time of purchase or lease on purchases or leases that were entitled to the partial exemption in s. 212.08(8), F.S., as provided in Rule 12A-1.0641(7), Florida Administrative Code. Conclusion Pursuant to the Florida Supreme Court case, Department of Revenue v. New Sea Escape Cruises, Ltd., 894 So.2d 954 (Fla. 2005), the taxpayer is eligible for the partial exemption provided in s. 212.08(8), F.S., to the extent provided above.

13 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 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,

Vicki Allen Tax Law Specialist Technical Assistance & Dispute Resolution (850)717-6041 Control No: 105354