Florida DOR Clarifies Sales Tax Treatment of Parking Ticket Violation Fees

Florida DOR Clarifies Sales Tax Treatment of Parking Ticket Violation Fees

Overview of the Parking Ticket Sales Tax Issue

The Florida Department of Revenue recently issued a Technical Assistance Advisement, TAA 25A-009, addressing whether a violation fee included on a parking ticket receipt is subject to Florida sales and use tax. The advisement provides important clarification for parking operators, municipalities, and third-party parking management companies that assess both taxable parking charges and non-taxable penalties.

The TAA confirms a critical distinction under Florida sales tax law: while charges for the privilege of parking are taxable, violation fees imposed for noncompliance are not taxable when separately stated and avoidable by the customer.

Facts Reviewed by the Department

The taxpayer requesting the advisement operates parking facilities for private and public clients across multiple states, including Florida. The request concerned motor vehicle parking lots and garages.

The Department reviewed a Volusia County Notice of Parking Violation showing the following charges:

A $20.00 parking fee
Sales tax applied to the parking fee
A separately stated $50.00 violation fee

The notice reflected that the violation fee was imposed because payment for the parking stay was not received as required. An additional late fee could apply if payment was not made by a specified date.

Legal Framework

Florida law taxes charges for leasing or renting parking spaces under section 212.03(6), Florida Statutes. However, only charges that are part of the taxable sales price are subject to tax.

Taxpayer’s Position

The taxpayer acknowledged that charges for leasing or renting parking spaces are taxable under section 212.03(6), Florida Statutes, because they constitute a taxable license to use real property.

However, the taxpayer argued that the violation fee should not be subject to sales tax because it is:

Separately stated
Avoidable by the customer
Not a charge for parking or an additional service

The taxpayer relied on well-established Florida principles that taxing statutes are construed strictly against the state and that ambiguity must be resolved in favor of the taxpayer.

Department’s Analysis

The Department agreed with the taxpayer’s position.

While Florida law clearly imposes sales tax on parking charges, the Department found that violation fees do not constitute additional services that are part of the taxable sales price.

The Department analogized violation fees to other separately stated, optional, or avoidable charges that are not subject to tax, including:

Separately stated transportation charges under Rule 12A-1.045, F.A.C.
Optional insurance charges under Rule 12A-1.007(13)(e), F.A.C.

The Department also relied on the reasoning in Department of Revenue v. B & L Concepts, Inc., where the court held that incidental charges separately stated and avoidable by the customer are not taxable.

Conclusion

The Department concluded that when a parking ticket violation fee is separately stated and can be avoided by the customer—by paying the parking fee as required—it is not subject to Florida sales and use tax.

In the example reviewed, sales tax properly applied only to the $20.00 parking charge. The $50.00 violation fee was not taxable. The Department noted that the same analysis would apply to a separately stated late fee, when applicable.

Authorities

Sections 212.02, 212.03, and 213.22, Florida Statutes;

Rules 12A-1.073 and 12A-1.007, Florida Administrative Code;

Department of Revenue TAA 25A-009 (Oct. 27, 2025).

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