Information Guide

Identifying Information:GOLF COURSE AND COUNTRY CLUB SELF-AUDIT FACT SHEET
Tax Type:Kansas Retailers' Sales Tax
Brief Description:GOLF COURSE AND COUNTRY CLUB SELF-AUDIT FACT SHEET
Keywords:
Approval Date:05/27/2010


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
GOLF COURSE AND COUNTRY CLUB SELF-AUDIT FACT SHEET


Golf Courses and Country Clubs

June 7, 2010 Page 1 of 2
The taxability of sales and purchases of tangible personal property and labor services by Golf Courses and Country Clubs are summarized below. This list is not all-inclusive.

Purchases by Golf Courses and Country Clubs:
Kansas sales or compensating use tax applies to those purchases identified or designated as taxable in the chart below. The applicable Kansas sales or Kansas consumers’ use tax must be paid to the vendor or accrued and remitted directly to the Kansas Department of Revenue. Purchases from Kansas vendors may be reported using the retailers’ sales tax return. Purchases from outside this state which are delivered to this state are to be reported on the Kansas consumers compensating use tax return.

Purchases for use
Equipment and items purchased and used by a club for club business operations such as; golf carts, bag stands, barrier netting, ball caddie, ball dispensers, ball picker, ball and club washer and parts, banners, baskets, brush mat, cart brackets, course ropes and stakes, practice mats, fencing, course markers, flags, flag poles, televisions, cash registers, etc. (See next explanation for purchased items intended for rental)Taxable
Golf carts and other equipment that a club purchases exclusively for rental to customers may be may be purchased exempt with a Resale Exemption Certificate. Carts used both by employees and rented to customers are taxable at the time of purchase.Exempt
Equipment purchased and used by a club such as mowers, edgers, weed trimmers, etc.Taxable
Tangible personal property that a club rents or leases for it’s own use – survey equipment, equipment or machinery to apply herbicides, pesticides or fertilizers, copiers, fax, etc.Taxable
Landscaping materials purchased and used by a club such as, water gardens, walkways, edging, rock, sand, sod, turf, lighting, flowers, shrubs, trees, sod or seed, retaining walls, sprinkler systems and sprinkler head yardage markersTaxable
Application services of herbicides, pesticides or fertilizers that a club pays a third party to provideTaxable
Grounds services that a club pays a third party to provide such as lawn mowing & trimming, aerating, dethatching, tilling, power raking, tree & stump removal, tree trimming, snow removal, applying ice-melt or sand, soil analysis testing , etc.Exempt
Items purchased for resale > Food, soft drinks, tees, golf balls, etc.Exempt
Food preparation equipment and items such as; plates, forks, napkins (except disposable plates, forks, napkins supplied for take away food sales), tables, chairs, appliances, etc.Taxable
Exercise and fitness equipment purchased by a club for use by members.Taxable
Repairs and maintenance to existing buildings, and existing covered structuresTaxable
Repair and replacement services to commercial real estate such as parking lots, fences, light poles, etc.Taxable
Labor services for the original construction of new building Exempt
Repair and replacement Parts, and labor service charges for repairing, servicing, altering or maintaining the club’s tangible personal property such as club equipment and tools, computers, printers, copiers, security equipment, etc.Taxable
Warranty or service agreements for the club’s tangible personal property such as, shop equipment and tools, computers, printers, copiers, security equipment, etc.Taxable
Motor vehicle fuel (gas & diesel) purchased for off road use when purchased without paying the motor fuel excise tax. This includes fuel for which the motor fuel tax (road tax) has been refunded to you.Taxable
Tangible property purchased by the club to be given away or donated. (Items that are given away or donated to a tax exempt entity are not subject to sales tax as of April 2007)Taxable
Motor vehicles and accessories Taxable
Maintenance/repair of motor vehicles and accessories including lifts and other mechanical equipmentTaxable
Educational materials, posters, maps or other literatureTaxable
Furniture and fixtures, including but not limited to: desks, lamps, tables, chairs, shelving, plants, planters, artwork, signsTaxable
Linen servicesTaxable
Laptop and desktop computers, copiers, printers, fax machines, calculators and other similar equipmentTaxable

Purchases for use continued:
Printed materials production and distribution (such as direct mail items)Taxable
Security monitoring serviceExempt
Security cameras and other security equipment purchased by a clubTaxable
Canned Software and software upgrades and labor services to modify, alter, update or maintain software.Taxable
Custom software, custom software upgrades and labor services to modify, alter, update or maintain customized software.
"Custom" software = software developed for a single end user.
Exempt
Newspaper and magazine subscriptionsTaxable
Advertising in newspapers, radio, television, etc.Exempt
Promotional items purchased by a club including but not limited to: calendars, mugs and items of clothingTaxable
Services to install, replace, or repair plumbing, wiring, built-in cabinets and other fixtures.Taxable
Complimentary items that are given away, such as bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticks, balloons, stickers, pens and candyTaxable
Pest control materials and supplies purchased by a clubTaxable
Janitorial suppliesTaxable
Trash removal, shredding services, cleaning services, city sewer service.Exempt
Utilities including but not limited to electricity, gas and waterTaxable
Professional services such as legal or accounting servicesExempt
Telephone answering servicesTaxable
Business cards, office supplies, paper, toner cartridges, etc.Taxable

Sales By Golf Courses and Country Clubs:
The taxability of sales of tangible personal property and labor services by Tire Dealers is summarized below. This list is not all inclusive. The applicable sales tax must be collected unless the purchaser provides a valid exemption certificate*.

Sales
Fees and dues including, but not limited to, tournament fees, green fees, swimming pool fees, tennis court fees, cart path fees, and range fees. ‘‘Dues’’ means any charge that is a debt owed to the club, organization, or business by an existing member or prospective member in order for the member or prospective member to enjoy the use of the facilities of the club, organization, or business for recreation or entertainment, and shall include periodic or onetime special assessments, initiation fees, capital improvement fees, and entry fees. Fees and dues that are refundable upon termination of the membership are exempt.Taxable
Golf lessons and instructions, personal training servicesExempt
Locker rental feesExempt
Sales of meals or drinks, including meals sold to employees at a reduced price.Taxable
Sale or rental of tangible personal property such as golf carts, golf clubs, golf club bags, tees, shoes, towels, golf balls.Taxable
Vending machine sales.Taxable
Room rental charges.Exempt
Sales of alcoholic beverages that are subject to the 10% Drink TaxExempt
Sales of 3.2% alcoholic beveragesTaxable
Minimum dining room feesTaxable

* Sales/rentals to exempt entities with proper exemption certificates provided are exempt from sales tax. Ensure the exemption certificates are retained to substantiate all non taxed transactions.

Note: Kansas tax applies to the “gross receipts” from the sale of taxable goods or services in Kansas. Gross receipts include any amounts collected from the customer including any charges billed for freight, delivery or special handling.



Date Composed: 06/01/2010 Date Modified: 06/01/2010