A. The gross receipts or gross proceeds
derived from all sales of tickets or admissions to places of amusement, or to
athletic, entertainment or recreational events are subject to the tax. Fees for
the privilege of having access to or the use of amusement, entertainment,
athletic, or recreational facilities are subject to the tax; except such sales
by municipalities are exempt. All admissions or fees paid for the privilege of
having access to places of amusement, or to athletic, entertainment or
recreational events are subject to tax, regardless of whether the fee charged
is called a "membership" and allows access for one or more times, or for a
fixed period of time. Tickets or admissions purchased by members for the
purpose of having access to special entertainment events, even though these
events may be held on a regular basis, are also subject to the tax regardless
of who collects the fees for the ticket or admission.
B. Membership dues which are paid on a
regular basis by members of a club solely for the privilege of membership are
not subject to the tax, unless the dues are taxable as provided by GR-11(A) or
Dues and membership
fees to health spas, health clubs, and fitness clubs and dues and membership
fees to a private club, within the meaning of Ark. Code Ann. § 3-9202(10),
which holds any permit from the Alcoholic Beverage Control Board are subject to
1. If a club is a non-profit
charitable organization, dues and membership fees are not subject to tax. (See
2. The gross receipts
derived from any service provided by or through a health spa, health club,
fitness club, or private club are not taxable unless the service is a
specifically enumerated taxable service.
3. As specifically provided in Ark. Code Ann.
the gross proceeds derived by a private club from the charges to members for
the preparation and serving of mixed drinks or for the cooling and serving of
beer and wine are subject to sales tax and any supplemental taxes.