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AN ACT CONCERNING AN EXEMPTION FROM THE DUES TAX. |
This tax has not been addressed since 1985. P.A. 85-438 exempted clubs from dues tax if members' dues were one hundred dollars or less per person, doubling the previously applicable amount. The original bill and 1985 exemption increase was passed on the basis that small/inexpensive social clubs/organizations were viable institutions beneficial to the state’s quality of life. - NOT only sportsmen's clubs but other entities (Polish -American/etc. clubs).
Sec. 12-543. Dues or initiation fees tax.
Nature of tax. Exemptions. (a) There is hereby imposed a tax equivalent to ten per cent of any amount paid as dues or initiation fees to any social, athletic or sporting club. Such tax shall be imposed upon the club receiving such amounts. Reimbursement for such tax shall be collected by the club from the member. Such reimbursement, termed "tax", shall be paid by the member to the club charging the dues or initiation fees. Such tax when added to the amounts charged shall be a debt from the member to the club charging such amounts and shall be recoverable at law. (b) (1) A club shall be exempt from the dues tax if the annual dues of a member enjoying full privileges IS TWO HUNDRED DOLLARS OR LESS and TO any initiation fee required of such a member IF SUCH FEE IS TWO [are each one] hundred dollars or less. (2) A club sponsored and controlled by a charitable or religious organization, a governmental agency or a nonprofit educational institution shall be exempt from the dues tax. (3) Any society, order or association operating under the lodge system or any local fraternal organization among students of a college or university shall be exempt from the dues tax.