Are Fines for Violating House Rules Subject to Dues Tax?
No. Fines associated with violating the house rules of an athletic, social, or sporting club are not dues and, therefore, are not subject to dues tax. What Happens When a Club Refunds Dues or Initiation Fees to a Member? When a social, athletic, or sporting club refunds a payment of dues or initiation fees (including the amount of tax previously collected and remitted on the payment) to a member, the club may claim a refund for the amount of tax repaid. The refund claim must be in writing and must be made within three years from the date the overpayment was made. Effect on Other Documents: Informational Publication 2003(11) supersedes Ruling No. 90-69. Effect of This Document: An Informational Publication is issued by the Department of Revenue Services (DRS) addressing frequently asked questions about a current position, policy, or practice, usually in a less technical question and answer format. For Further Information: Please call DRS during business hours, Monday through Friday: • 1
