What sales must Kansas private and public clubs collect sales tax on — dues, bingo, admissions, concessions, food, and merchandise?

Plain-English summary

Audits had revealed that many private and public clubs in Kansas misunderstood their sales tax obligations — some seriously — so the Director of Revenue spelled out what clubs must collect tax on.

Clubs must collect and pay Kansas sales tax on:

• Membership dues — if the dues entitle the member to use club facilities for recreation or entertainment (law effective July 1, 1971).
• Gross receipts from bingo or similar games of chance (law effective July 1, 1970).
• Admissions to dances, shows, or other entertainment (effective June 1, 1937).
• Gross receipts from any concession (effective June 1, 1937).
• Gross receipts from sales of food or drinks of any kind (effective June 1, 1937).
• Gross receipts from selling indicia of membership — caps, lapel buttons, and the like (effective June 1, 1937).

The Department stressed the list was not all-inclusive but covered the main areas of non-compliance.

On rates: the notice states the sales tax rate was 3% throughout the state, except in Topeka, Manhattan, and Lawrence, where it was 3½%.

What this means for you

If you ran a Kansas club in the early 1970s, membership status did not remove the listed receipts from sales tax. Dues that bought recreation access, bingo income, event admissions, concession and food-and-drink sales, and membership merchandise were taxable, with the rate depending on location under the rates stated in the notice.

Common questions

Q: Are club membership dues taxable?
A: Yes, if the dues entitle the member to use club facilities for recreation or entertainment (effective July 1, 1971).

Q: Is bingo income taxable?
A: Yes — gross receipts from bingo or similar games of chance, effective July 1, 1970.

Q: What about food, drinks, and concessions?
A: Taxable — gross receipts from concessions and from sales of food or drinks of any kind (effective June 1, 1937).

Q: What was the tax rate?
A: 3% statewide, except 3½% in Topeka, Manhattan, and Lawrence, per the notice.

Citations and references

• The notice lists the taxable club activities and their effective dates (June 1, 1937; July 1, 1970; July 1, 1971) but cites no specific statute section.

Subject

Imposition of Sales Tax on Private and Public Club Sales

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 72-0424

Original ruling text

Notice
Notice Number: Private & Public Clubs
Tax Type: Kansas Retailers' Sales Tax
Brief Description: Imposition & Sales Tax on Club Sales
Keywords:
Effective Date: 04/24/1972

Body:
April 24, 1972

 TO: ALL PRIVATE AND PUBLIC CLUBS IN KANSAS

 FROM: JAMES T. McDONALD
 DIRECTOR OF REVENUE



 Audits and investigations of a number of private and public clubs throughout the state have revealed that considerable
 misunderstanding exists as to the liability of such organizations for Kansas Sales Tax. As a matter of fact, some serious
 violations of the law have been discovered. For this reason, the following information is provided:
              1. Sales tax should be collected and paid by private and public clubs on:
                           a. Dues for memberships if such dues entitle the member to the use of club facilities for a recreation
                           or entertainment. Law effective July 1, 1971.
                           b. Gross receipts received from the operation of bingo games or similar games of chance. Law
                           effective July 1, 1970
                           c. Admissions to dances, shows, or other types of entertainment. Lay effective June 1, 1937.
                           d. Gross receipts received from the operation of a concession of any kind. Law effective June 1, 1937.
                           e. Gross receipts from the sales of food or drinks or any kind. Law effective June 1, 1937.
                           f. Gross receipts from the sale of indicia of membership, such as caps, lapel buttons, and so forth..
                           Law effective June 1, 1937

 NOTE: This list in not all inclusive but is intended to cover the major areas where failure of compliance with state laws has
 been found.

 2. The sales tax rate is 3% throughout the state except in Topeka, Manhattan, and Lawrence - those three cities the rate is 3 ½
 %.



 James T. McDonald
 Director of Revenue

Date Composed: 10/06/1997 Date Modified: 10/10/2001

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