ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.125.01. Amusement Tax Due on Fees Collected by Golf Courses
open to the Public.
(1) The term "golf course open to the public" as used in this regulation
shall mean any golf course, except those owned and operated by the State
of Alabama or a county or incorporated municipality of the State of Alabama,
which allows the public to use one or more of its facilities for a fee.
However, the following policies or activities shall not cause an otherwise
private golf course to be classified as a golf course open to the public:
- (a) reciprocal play agreements with other golf courses that are also
not open to the public.
- (b) play by guests of a member (whether or not accompanied by the member).
- (c) hosting a tournament in compliance with the provisions of Section
40-23- 4(a)(39), as amended.
- (d) periodically holding invitational or charitable tournaments.
- (e) the sale of condominium units the purchase of which carries with it the
privilege of using the golf course facilities.
(2) Golf courses open to the public are liable for and shall collect
and remit the amusement tax levied in Section 40-23-2(2) on fees paid by
their customers including but not limited to the following fees as of the
effective date of this regulation:
| membership dues |
tennis court fees |
| initiation fees |
swimming pool fees |
| golf cart fees |
driving range fees |
| greens fees |
locker fees |
(3) The gross proceeds from the sales of condominium units by golf courses
open to the public do not constitute gross receipts from places of amusement
and, therefore, are not to be included in the measure of tax levied in
Section 40-23-2(2).
(4) Golf courses owned and operated by the State of Alabama or a county
or incorporated municipality of the State of Alabama are exempt from the
amusement levy contained in Section 40-23-2(2). (City of Anniston v.
State, 265 Ala. 303, 91 So.2d 211 (1956))
(5) Retail sales of tangible personal property by golf courses owned
and operated by counties or incorporated municipalities of the State of
Alabama are exempt from sales tax. Retail sales of tangible personal property
by all other golf courses, public or private, are taxable.
(6) The provisions of this rule shall become effective October 1, 1993.
(Adopted through APA effective October 12, 1993)
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