96-009

Response January 16, 1996

Request

January 7, 1996

To whom it may concern:

I am writing regarding our XXXXX and whether or not we need to charge sales tax on the birds when we sell them to our hunters.

I was told to request and Advisory Opinion and give detail as to how we run. XXXXX sells two different types of memberships, a personal which costs $$$$$ ($$$$$ for the membership and $$$$$ for a “bird card” which is a total of 20 birds). We also sell a corporate membership which costs $$$$$ ($$$$$ for the membership and $$$$$ for 3 bird cards for a total of 60 birds).

We also have day-hunts which is where any person can come on our land and hunt for the day We charge them $$$$$ to come on our land. However, we charge a 5 bird minimum, which means that even if they only kill 3 birds, they will be charged for 5 at $$$$$ a bird.

XXXXX does not raise the birds we put our for our hunters. We buy them from a farming operation called XXXXX. We have not been paying sales tax when XXXXX sells us the birds.

I would appreciate an Advisory Opinion and response as soon as possible, we do not want to get in trouble with the state for not charging tax when we should have.

Thank You!

XXXXX

January 16, 1996

XXXXX

RE: Advisory Opinion - Sales tax on Hunting Club Charges.

Dear XXXXX

We have received your request for an advisory opinion regarding the application of sales tax to your club's charges for access to your land and for purchases of “bird cards.” We find as follows:

XXXXX is required to collect and remit sales tax on all charges to customers for entrance onto private lands, use of facilities or equipment, and any other services provided such as guide service or meals. Sales of “bird cards” which entitle hunters to limited hunting privileges are part of the taxable user fee. Therefore, the entire charge is taxable as an admission or user fee for a recreational activity.

XXXXX must pay sales tax on its purchases of tangible personal property that is consumed in the process of providing recreational activities. For instance, XXXXX must pay sales tax on its purchases of birds from XXXXX.

Let us know if you have further questions.

For the Commission,

Alice Shearer

Commissioner