Department of Revenue v. Seminole Clubs, Inc.

The Department of Revenue [“Department”] appeals the final judgment awarding declaratory relief in favor of Seminole Clubs, Inc., d/b/a/ Mayfair Country Club [“Mayfair”] denying the department’s claim for unpaid sales tax on a commercial lease. Because we conclude that sales tax was due on Mayfair’s capital expenditures made as a condition of occupancy, we reverse.

On March 11, 1981, Mayfair executed a sixty-seven year and seven month lease with the City of Sanford [“Sanford”] to operate a public golf club in Sanford, Florida. Paragraph 2 of the lease, entitled “Rentals,” provided:

Lessee…