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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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550.0000 Taxable Sales of Food Products—Regulation 1603

Annotation 550.1020

(f) Social Clubs, Fraternal and Religious Organizations


550.1020 Minimum Purchase Requirement for Members. Country clubs and other organizations sometimes establish minimum food and drink purchase requirements for their members. If a member's purchases are less than the minimum, he is required to remit the deficiency. Such payments are additional membership fees and are not payments for tangible personal property. Accordingly, they are not includable in taxable gross receipts from sales of food and drink by the club. 7/22/69.