Kansas Retailers’ Sales Tax
Wholesale Club Memberships
TO: Kansas Retailers
FROM: KANSAS DEPARTMENT OF REVENUE
RE: Sale of Club Memberships
The Kansas Department of Revenue has been asked whether the retail sales of memberships which permit the holder thereof admittance to a retail outlet for the purpose of purchasing tangible personal property at a discount, would be subject to the Kansas retailers' sales tax.
K.S.A. 79-3603(e) imposes a sales tax; "upon the gross receipts received from the sale of admissions to any place providing amusement, entertainment or recreation services including admissions to state, county, district and local fairs, but such tax shall not be levied and collected upon the gross receipts from fee and charges by political subdivisions of the state of Kansas for participation in sports, games and other recreational activities or from sales of admissions to any cultural and historical event which occurs triennially".
The Director of Taxation has determined that K.S.A. 79-3603(e) does not impose sales tax on the retail sale of memberships which permit the holder thereof admittance to a retail outlet for the purpose of purchasing tangible personal property at a discount.
Additional questions regarding this notice should be directed to the Kansas Department of Revenue, Technical Support Unit, Docking State Office Building, Topeka, Kansas 66625-0001 or call (913) 296-5476.
Effective date: January 1, 1992
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