Which for-profit country-club membership dues did historical SC Revenue Ruling 91-18 subject to admissions tax?

Plain-English summary

South Carolina Revenue Ruling 91-18 treated recurring dues paid to a for-profit country club as paid admissions to a place of amusement.

Its historical effective-date rules were:

• Social dues that gave the member discounts or privileges for golf, tennis, swimming, or other facilities were taxable for all periods open under the statute.
• Beginning April 1, 1992, even “true” social dues—membership limited to clubhouse access without discounts or privileges for other facilities—were taxable.
• Beginning April 1, 1992, the full amount of golf, tennis, swimming, and other membership dues was taxable, rather than only the amount above the social-membership portion.

SC Revenue Ruling 24-4 later modified this treatment for qualifying monthly or annual golf-club dues paid on or after May 13, 2024.

The country-club arrangements

For-profit clubs offered recreation, sports, dining, and social facilities, including golf, tennis, swimming, and a clubhouse. Depending on membership category, a person paid annual or monthly dues, separate charges for particular facilities, or both.

The ruling defined membership dues as recurring obligations—usually monthly or annual—paid for maintaining the organization, continuing membership privileges, and the right to enter or use club facilities.

Before RR 91-18, the Commission taxed dues above a true social-membership amount and separately taxed charges such as green fees, court fees, and New Year's Eve parties. It had not required tax on dues for a true social member who received clubhouse access but no other facility discount or privilege.

Why the dues were admissions

Section 12-21-2420 imposed the historical admissions tax on paid admissions to places of amusement. Section 12-21-2410 defined admission as the right or privilege to enter or use a place or location.

The Commission treated a country club as a place of amusement because it provided activities occupying spare time, relaxing, entertaining, or giving pleasure.

The ruling relied on three decisions:

• Beach v. Livingston applied admissions tax to the paid use of a bowling alley even without a separate entrance charge.
• Venture Management Inc. v. South Carolina Tax Commission taxed an annual membership fee required to enter or use a for-profit tennis and swim club.
• Wildewood Country Club, Inc. taxed annual fees and monthly dues that gave social and other members free or discounted use of recreational facilities.

From those authorities, RR 91-18 defined a paid admission as the amount required for the right to enter or use a place or location.

The policy change for social members

The Commission concluded that even a true social member paid for the right to enter or use a place of amusement—the clubhouse. It therefore changed its policy and made those dues taxable beginning April 1, 1992.

Where social membership already included free or discounted use of other club facilities, the ruling applied admissions tax for all open statutory periods.

Full dues for other memberships

The ruling also ended the practice of taxing only the portion of golf, tennis, swimming, or similar membership dues exceeding a social-membership component. Beginning April 1, 1992, the entire dues amount was subject to the historical admissions tax.

The ruling noted that the statutory rate was four percent when discussed, with an enacted increase to five percent effective February 1, 1992.

What this means for you

Clubs reviewing historical periods

Identify the membership category, benefits, and payment date. RR 91-18 used different effective rules for social memberships with recreational privileges and true social memberships without them.

Clubs applying current law

Do not rely on RR 91-18 alone. RR 24-4 modified it for qualifying golf-club monthly and annual dues paid on or after May 13, 2024.

Members and accountants

The label placed on dues did not control the historical analysis. The ruling focused on whether payment was required for the right to enter or use the club and its facilities.

Common questions

Q: Were true social dues taxable for every historical period?

A: No. The ruling's policy change for true social dues took effect April 1, 1992.

Q: What if social members received golf or tennis discounts?

A: Those dues were taxable for all periods open under the statute.

Q: Could a club subtract the social-membership portion from golf dues?

A: Not after April 1, 1992 under RR 91-18. The ruling taxed the full membership amount.

Q: Why was clubhouse access taxable?

A: The Commission concluded that paying for the right to enter or use the clubhouse was a paid admission to a place of amusement.

Q: Does RR 91-18 control current golf-club dues?

A: Not by itself. RR 24-4 later modified the treatment of qualifying golf-club monthly and annual dues.

Citations and references

• S.C. Code Ann. § 12-21-2410 — historical admissions-tax definitions
• S.C. Code Ann. § 12-21-2420 — historical admissions tax
• S.C. Code Ann. § 12-4-320 — ruling authority
• Beach v. Livingston, 248 S.C. 135, 149 S.E.2d 328 (1966)
• Venture Management Inc. v. South Carolina Tax Commission, No. 80-CP-40-4157 (Apr. 4, 1981)
• Wildewood Country Club, Inc., No. 90-CP-40-5223 (Jan. 24, 1991)
• SC Revenue Ruling 24-4 — later modification for golf-club dues: https://dor.sc.gov/sites/dor/files/policies/RR24-4.pdf

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR91-18.pdf

Original ruling text

SC REVENUE RULING #91-18

SUBJECT:

Country Club Membership Dues
(Admissions Tax)

TAX ANALYST:

Deana West

EFFECTIVE DATE:

See Conclusion

SUPERCEDES:

All previous documents and any oral directives in conflict
herewith.

REFERENCE:

S.C. Code Ann. Section 12-21-2410 (1976)
S.C. Code Ann. Section 12-21-2420 (1976)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (Enacted June 1991)
SC Revenue Procedure #87-3

SCOPE:

A Revenue Ruling is the Commission's official interpretation of
how tax law is to be applied to a specific set of facts. A Revenue
Ruling is public information and remains a permanent document
until superceded by a Regulation or is rescinded by a subsequent
Revenue Ruling.

Question:
Are social membership dues paid to a for-profit country club subject to the admissions
tax?
Facts:
Country clubs offer recreation, sports, dining and social facilities to members and guests.
Some of the facilities that are available include golf, tennis, swimming and the clubhouse.
Depending upon the membership category, a person entering or using the clubs' facilities
must pay annual or monthly membership dues and/or separate charges for each admission
or use of the golf course, courts, pool, etc.

1

Currently, for-profit country clubs remit the admissions tax on annual or monthly
membership dues that are in excess of social membership dues and on certain other
separate charges, such as green fees, court fees and New Year's Eve parties. These clubs,
however, have not been required to remit the admissions tax on membership dues of a
"true" social member (i.e. a member entitled to use of the clubhouse who does not receive
any discount or privileges for use of the other club facilities).
For purposes of this ruling, membership dues are defined as obligations into which
members of a club enter to pay a sum, to be fixed usually by the club's by-laws or board
of directors, for the maintenance of the organization, continuing privilege of membership
and right to enter or use the facilities. Such membership dues are paid at recurring
intervals, usually monthly or annually.
Discussion:
Code Section 12-21-2420 imposes the admissions tax and reads, in part:
There shall be levied, assessed, collected and paid upon all paid admissions to
all places of amusement within this State a license tax of four percent...
During the past legislative session, the General Assembly amended Code Section 12-212420, as stated above, to increase the admissions tax from 4% to 5% effective February 1,
1992.
Code Section 12-21-2410 defines various terms found in the article and reads, in part:
For purposes of this article and unless otherwise required by the context:
(1) The word "admission" means the right or privilege to enter into or use a
place or location;
(2) The word "place" means any definite enclosure or location; and
(3) The word "person" means individual, partnership, corporation, association
or organization of any kind whatsoever.
The code, however, does not define the terms "place of amusement" or "paid
admissions".
In determining the meaning of the term "place of amusement", recent commission rulings
provide guidance. In South Carolina Revenue Rulings #89-8 and #90-7, a "place of
amusement" was defined as any enclosure or location consisting of an activity that
occupies ones' spare time, distracts the mind, relaxes, entertains or gives pleasure. Based
upon this definition, country clubs are considered places of amusement.
2

In determining the meaning of the term "paid admissions", the measure of the admissions
tax, the courts provide guidance. In Beach v. Livingston, 248 SC 135, 149 SE 2d 328
(1966), the South Carolina Supreme Court reviewed the application of the admissions tax
upon persons charged for participating in a recreational activity open to the public when
no charge was made for entering the facility. Specifically, the court reviewed charges
collected to use a bowling facility. The court concluded the tax was applicable and that it
was "logical to conclude that the word 'use' means that a tax is imposed upon a person
who avails himself of the facilities of a place of amusement".
In Venture Management Incorporated v. South Carolina Tax Commission, No. 80-CP-404157 (Apr. 4, 1981), the Circuit Court reviewed the taxation of an annual membership fee
or charge imposed upon members of a for-profit tennis and swim club. Since the
members could not enter or use the facility without payment of the annual fee, the court
concluded that "...the payment of the charge was a condition for the privilege to enter into
or use the facilities of the club" and was taxable under Code Section 12-21-2420.
Furthermore, the court supported its conclusion by stating:
Exemptions are provided in 12-21-2420 for charges made by certain eleemosynary
and nonprofit corporations or organizations. It further specifically provides:

• • • no admission tax shall be charged or collected by reason of any charge
      made to any member of a nonprofit organization or corporation for the use of
      the said organization or corporation of which he is a member.* * *
      By enacting this exclusion or exemption, legislative intent is reflected to tax similar
      charges by other organizations.
      "When certain persons or things are specified in a law, contract or will, an
      intention to exclude all others from its operation may be inferred. Little v.
      Town of Conway, 171 S.C. 27, 171 S.E. 2d 447, West Virginia Pulp and
      Paper Co. v. Riddock, 225 S.C. 283, 82 S.E. 2d 189.
      Similarly, in Wildewood Country Club, Inc., No. 90-CP-40-5223 (Jan. 24, 1991), the
      Richland County Court of Common Pleas reviewed the taxation of annual fees and
      monthly dues paid by social, tennis, golf and combination members of a privately owned
      for-profit club. At the club under review, the club members, including social members,
      paid annual fees and monthly dues, instead of green fees, which entitled them to play golf
      either free or at a discount. The court concluded "the fees and dues were payments for the
      privilege of using Wildewood's recreation facilities. As such, they are within Section 1221-2420 and thus subject to taxation".

3

Based upon the above discussion, the term "paid admission" is defined as the amount
required to be given for the right to enter into or use a place or location.
As previously stated, the Commission has not taxed membership dues of "true" social
members (i.e. members entitled to use of the clubhouse who do not receive any discount
or privileges for use of the other club facilities). However, the Commission has
determined that "true" social members, as well as social members receiving free or
discounted use of the club's facilities, are paying for the right or privilege to enter into our
use a place of amusement. All social membership fees, including those paid by "true"
social members should be subject to the admissions tax. Therefore, a change in
Commission policy is in order with respect to the taxation of true social membership
dues.
Conclusion:
Membership dues paid to a for-profit country club that allows social members discounts
or privileges for the use of the other club facilities are subject to the admissions tax for all
periods open under statute. Effective April 1, 1992, all other social membership dues paid
to a for-profit country club are subject to the admissions tax.
All other types of memberships to a for-profit country club, such as golf, tennis and
swimming memberships, are no longer taxed only on the membership dues exceeding the
social portion of the dues. Instead, the entire amount of these membership dues are
subject to the admissions tax, effective April 1, 1992.

SOUTH CAROLINA TAX COMMISSION

s/S. Hunter Howard, Jr.
S. Hunter Howard, Jr., Chairman

s/A. Crawford Clarkson, Jr.
A. Crawford Clarkson, Jr., Commissioner

s/T. R. McConnell
T. R. McConnell, Commissioner
Columbia, South Carolina
October 9
, 1991

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