Missouri Supreme Court Affirms Decision Holding Country Club’s Membership Dues Subject to Sales Tax

The Missouri Supreme Court Nov. 1 affirmed the Administrative Hearing Commission’s decision, which denied a sales and use tax refund to Taxpayer, a nonprofit country club. Taxpayer claimed a refund, contending that the Department of Revenue (DOR) erroneously imposed sales tax on membership dues. The DOR rejected the refund and Taxpayer protested, claiming that the dues weren’t taxable because the club members received an equitable ownership in the club. The hearing commission also denied the refund. Taxpayer appealed and the supreme court noted: 1) the dues were fees paid to a place of amusement, entertainment, or recreation; 2) Taxpayer didn’t ...