Membership Fees

Memberships to any club, community center, or other organization are taxable if both of the following are true:

• The club, association, or other organization makes sport and athletic facilities available to its members without regard for if a separate charge is assessed for use of the facilities.
• Use of the sports and athletic facility is not available to the public on the same basis as it is made available to members.

One-Time and Periodic Memberships

All nonrefundable one-time initiation fees and periodic membership dues required to become a member or to remain a member of a club are taxable.

Note: Periodic membership dues are payments due at least annually to retain the rights and privileges of club membership.

Mandatory annual charges that allow members to make club purchases at special membership rates are taxable as periodic membership dues. Charges or penalties assessed for not meeting minimum spending requirements are not taxable when they are separately stated.

For more information, see Revenue Notice 17-07, Golf, Country Club, and Athletic Club Memberships.

Social Memberships

Social memberships are taxable. A social membership in a club offers athletic facilities to its members but does not include use of the facilities.