Revenue Ruling
Ruling Number:
19-86-1
Tax Type:
Kansas Retailers' Sales Tax
Brief Description:
Membership Fees and Dues
Keywords:
Effective Date:
07/01/1986
Body:
REVENUE RULING 19-86-1
SALES TAX TAXABILITY OF MEMBERSHIP FEES AND DUES TO HEALTH FITNESS, EXERCISE AND ATHLETIC CLUBS, BUSINESS AND ORGANIZATIONS UNDER KSA 79-3603 (n)
KSA 79-3603 (n) imposes sales tax upon the "gross receipts received from dues charged by public and private clubs, organizations and businesses, payment of which entitles a member to use the facilities for recreation or entertainment."
The Department of Revenue has determined that dues or fees charged for membership to clubs, organizations or businesses which entitle that member to the use of facilities for health, fitness, exercise, recreation or athletic purposes are dues within the meaning of KSA 79-3603 (n). Therefore, such dues should be subject to the Kansas retailers' state and local taxes.
Further, pursuant to KSA 79-3603 (m), admissions charged to members and non-members by a club, organization or business for participation in sports, games and other recreational activities when such club, organization or business provides health, fitness, exercise, recreation or athletic services should likewise be subject to the Kansas retailer's state and local sales taxes. Fees and charges made by political subdivisions of the State of Kansas for participation in sports, games and other recreational activities exempt under KSA 79-3603 (e).
This Revenue Ruling applies to, but is in no way limited to, the following clubs, organizations or businesses which provide the following activities: weight lifting, racquetball, tennis, golf, nautilus, jazzercise, dance, aerobics, handball, swimming and exercise.
This Revenue Ruling supersedes all previous Department of Revenue rulings and opinions, and shall become effective July 1, 1986.
APPROVED:
_________________________________
Harley T. Duncan
Secretary of Revenue
Date Composed:
10/06/1997
Date Modified:
10/11/2001
Return to KSA Listing