Washington Supreme Court Agrees to Hear Country Club Tax Dispute

The Washington Supreme Court agreed to review a ruling that a country club may deduct initiation fees from its taxable income, which entitled the club to a refund of nearly $48,000.

In January, the Washington Court of Appeals, Division II, reversed a trial court ruling that only a portion of the one-time initiation fees paid to the nonprofit Royal Oaks Country Club was eligible for a deduction from the club’s business and occupation taxes and retail sales taxes. The initiation fees, which are separate from the club’s monthly dues, range from $200 to $10,000, depending on membership level.

The Department ...