The New York herald., 1921-12-02
GOLF GREEN FEES
CANNOT BE TAXED
Clubs Which Failed to Collect
Are Not Liable on This
Account.
BY KERR n. PETRIE.

While procrasti-ation seldom gain
other than condemnation rt has bee
found to pay handsome dividends ir III
saving of labor and worry on the par
of those golf clubs which. undecided how
to interpret the law relative to the II
per cent. tax on green fees, have fol
lowed the lines of least resistance arc
done nothing at all about the matter
After many delays the secretary's offic,
Il the United States Goir Association
has received word from rNe Trea surs
Department that clears away all doubt
Because of the intc- pretation OF the 10
act some OF the clubs collected the tax
but later riiiing from Washington re
versed the order.
II Is interesting 10 note the distinction
drawn by the Treasury Department a.
between "green fees" and Charges fal
golf or similar privi' i'eges over a perio'
OF time" This would appear to leav,
the clubs with new problem on thetl
hands. As 1t looks now the u. S. G. A
will have 10 req''est the Treasury De
nartmont to specify the duration % c
period Of time" The letter received b,
w. D. Vanderpool, secretary of the u. S
G.. A., and signed by A. c. Holden, Act
lows:
Receipt Is acknowledged OF your
letter of November Is. 1921, request
ing TO be advised the exact status
as TO the taxabiIlty of green fees
You are advised that ordinarily
green fees arc not taxable. either
as admissions or as dues or fees,
but when a club or organization
grants golf privileges or similar
privileges for n period OF time the
charge made therefor Is considered
as dues or fees within the meaning
of section sol OF the revenue act OF
1915 The enclosed copies OF ReEu-
lations 43 are forwarded for your
information. and your attention is
especially invited to article 10, OK
ample 90 of part I. and article l2
and examples Hereunder of part II.
You are further advised that this
office is in receipt of letter dated
October q. 1921. from j. l.. Graef
& Co. National Bank OF Commerce
Building. 81 Nassau street, New
York. N. Y. requesting in behalf
Of the United States Golf Associa-
ton an Official statement or letter
concerning the tax due on initiation
fees. dues and green fees paid to
golf and country clubs which will
serve as q OASIS TOT answering IN
quiriea on rhis subject received by
the association from its members
throughout the United States A
copy Of office reply to this letter
is also enclosed for your Informal
ton.
In regard 70 refund OF tax which
has been raid on green fees you
are advised the provisions OF the
last revision Of these regulations
which held that green fees are not
taxable are retroactive In effect to
the date the tax on admissions be-
came effective. Therefore, clubs
which failed to collect this tax are
not liable on account of such
failure.
In any case where a club has COLI
lected tax from persons from whom
Il collected green fees, the claim
for refund filed by the club must
be supported by waivers from the
persons who paid the tax to the
club. showing the payment Of the
tax and that no claim has been
fled or will be filed with tho Gov
ernment for refund thereof.
In cases where clubs failed TO coll
lect the tax from its guests but
paid u out of It's own funds. such
waivers are not necessary. but the
fact that the tax was paid by the
club ltself must 10 clearly shown.