Free Consultation|USA Only +1 (866)754 4460|Outside USA +1 (516)822 3100 or +1 (631) 623 5100 - Website Logo
  You are here : Home  >   Services  >   Article Directory of Sales Tax Registration  
TESTIMONIALS - Testimonials  

NYS-Tax Law imposes sales tax on the dues paid to any social or athletic club !

Information source-NYS official site. NYS-Tax Law imposes sales tax on the dues paid to any social or athletic club !
Existing customers please login to check the status of your order at Infotax Square Login here (0) (0)
0/5 stars (0 vote)
Category : > Article Directory of Sales Tax Registration
Posted On : Wed Jul 07th,2010

Information source-NYS official site. NYS-Tax Law imposes sales tax on the dues paid to any social or athletic club !

Section 1105(f)(2)(i) of the Tax Law imposes sales tax on the dues paid to any social or athletic club in this State if the dues of an active annual member, exclusive of the initiation fee, are in excess of ten dollars per year. Tax Law section 1101(d)(6) defines “dues” as any dues or membership fee including any assessment, irrespective of the purpose for which made. Tax Law section 1101(d)(13) defines “social or athletic club” as any club or organization of which a material purpose or activity is social or athletic. Sales tax regulation section 527.11(b)(5)(i) defines “club or organization” as follows:

The phrase club or organization means any entity which is composed of persons associated for a common objective or common activities. Whether the organization is a membership corporation or association or business corporation or other legal type of organization is not relevant. Significant factors, any one of which may indicate that an entity is a club or organization, are: an organizational structure under which the membership controls social or athletic activities, tournaments, dances, elections, committees, participation in the selection of members and management of the club or organization, or possession by the members of a proprietary interest in the organization.

The organizational structure may be formal or informal.

Regulation section 527.11(b)(6) defines “social club” as any club or organization which has a material purpose or activity of maintaining quarters for arranging periodic dances, dinners, meetings, or other functions affording its members an opportunity of congregating for social interrelation.

The test of taxability is not whether a club has any social features at all, but whether or not such activities, viewed in the light of all the circumstances of its existence, including the declared purpose of the organization as shown by its constitution and by-laws (if their provisions are enforced), provide the real reason for its existence and enable it to secure members and retain them. Another way to put the issue is whether the social features of the club involved are merely incidental or, on the other hand, are a material purpose of the organization. Union League Club of Chicago v. United States, supra. [Ct. Cl., 4 F. Supp. 929 [1933 CCH ¶9576].

Members are required to attend a minimum number of meetings. When they attend meetings, members are required to describe their business and business leads/introductions they are seeking. In addition, members must provide business leads to other members. In sum, businesses pay Petitioner to become members in its organization solely in order avail themselves of the business promotional opportunities that Petitioner provides. 

If you need our services to register your sales tax or certificate of authority then please click order now button or for additional information read me. InfoTaxSquare also helps preparing sales tax quarterly, monthly and yearly returns in all fifty states. For quotations and consultation can either be called at +1 (866)754 4460 or email at 24/7 online help available!


Committed to give our users most updated news!
For instant news please subscribe at

Leave Your Comments
Your name :
Email Address : Will not be published
Please enter your email if you want us to send answer to your email. We have a strict policy of not to share your email address with any other party.
Your message :
Insert these letters into the textfield below: (required, case-sensitive): TWFPZ
Do you want to Subscribe for
InfoTaxSquare Business News Bulletin?
Comments (0)
Load More
No Comments found, Be the first to write comment

Copyright © 2010, Infotax Square All Rights Reserved. - Allows Payment Processing With Visa, MasterCard, American Express and Discover
Terms and conditions, features, support, pricing and service options subject to change without notice.