Utah Tax Commission Finds Club’s Annual Membership Fee Not Subject to Sales and Use Tax

The Utah State Tax Commission July 18 found that Taxpayer’s annual club membership fee wasn’t subject to sales and use tax. Taxpayer was a for-profit limited liability company formed to own, develop, and operate recreational club facilities. The auditing division found that Taxpayer’s annual membership fee was subject to tax. Taxpayer disagreed with the imposition of sales tax. The division contended that Taxpayer’s annual membership dues were taxable “admission or user fees.” Taxpayer contended that it was a private organization and therefore its annual membership fee wasn’t taxable. The commission noted that: 1) Taxpayer was indisputably a non-government organization and ...