Court Opinion

ID: 9677834
Source: CourtListenerOpinion
Date Created: 2023-08-24 06:01:33.600147+00
Date Added: 2024-06-11T18:16:58.900576
License: Public Domain

DONNELLY, Judge,
dissenting.
I respectfully dissent.
Section 144.010.1(2) defines “business” as any activity engaged in by any person, or caused to be engaged in by him “with the object of gain, benefit or advantage, either direct or indirect” (emphasis supplied).
This statute, like all tax laws, is to be construed so as to give the words in the statute their plain and ordinary meaning. Blue Springs Bowl v. Spradling, 551 S.W.2d 596, 598 (Mo. banc 1977). Tax laws are to be construed strictly against the taxing authority, Canteen Corp. v. Goldberg, 592 S.W.2d 754, 756 (Mo. banc 1980), and where there is a reasonable doubt as to the meaning of a revenue statute, the doubt is resolved in favor of those taxed, C. Sands, Sutherland Statutory Construction, § 66.01 at 179 (4th ed. 1974); United Air Lines, Inc. v. State Tax Commission, 377 S.W.2d 444, 448 (Mo. banc 1964).
Testimony before the Commission revealed that members were charged guest fees for two purposes: to discourage nonmember guests and to spread equitably the cost of club operations. As to the first purpose, if the object of charging the fees were to obtain some gain, benefit or advantage, then it is reasonable to assume that non-member guests would be encouraged rather than discouraged. However, the stringent restrictions on non-member usage, including the limitation on the use of all club facilities to a certain number of times per year and the requirement that the nonmember be accompanied by a member, support the clubs’ contention that their purpose was to discourage such use. Regarding the second purpose, testimony indicated that the member who brings in a guest puts an additional burden on the facilities; for that reason he is assessed an additional charge to offset that burden. The assessment of the additional charge to members for their guests obviates the need for a complex dues structure based on the usage by the member, his family, and his guests. Consequently, the guest fees are not intended to put the clubs in a better position than they were in before the member entertained his guest, but rather to counterbalance the additional burden imposed by that member on the club.
In my view, the facts in this case do not show that the charging of guest fees was engaged in by the clubs with the object of gain, benefit or advantage, whether direct or indirect, under the sales tax statutes. *619The guest fees were in actuality special assessments or additional membership dues, neither of which is claimed to be subject to any sales tax. See Potowomut Golf Club, Inc. v. Norberg, 114 R.I. 589, 337 A.2d 226 (1975).
I would reverse.