Gun clubs jolted by tax
Unexpected bills spur exemption push in state
By Ed Culhane
Post-Crescent staff writer
Directors of the Twin City Rod & Gun Club were shocked in December when notified their nonprofit organization had to pay a state sales tax on memberships and fees.
In the Neenah club's 60-plus years of existence, it had never before paid this tax, as far as any current members know.
"They hit us for $19,000," said club president Miles Horton. "We've paid it already. We didn't have much choice. We had to halt a couple projects we were doing."
Meredith Helgerson, a spokeswoman for the state Department of Revenue, said that by law, she is not allowed to discuss details regarding a specific taxpayer. But she said that the department for years has been taxing recreation clubs. "This is a long-standing law," she said.
It's one that recreation clubs hope to change.
After the Outagamie Conservation Club, N3502 Mayflower Road, also received an unexpected tax bill, for about $10,000, club president Michael Kohl asked state Rep. Steve Wieckert, R- Appleton, for help.
Wieckert drafted Assembly Bill 718, which would create a sales tax exemption on memberships in gun clubs that are open to the public and that provide safety classes, certified by the state Department of Natural Resources, to at least 100 individuals a year. These include hunting and firearm courses and classes in the safe operation of ATVs, boats and snowmobiles.
The Legislature's Joint Finance Committee will discuss the bill — already approved unanimously by the Assembly's Natural Resources Committee — Wednesday. It will go to the Assembly if it is approved by the committee, then to the state Senate and finally to Gov. Jim Doyle.
Helgerson said all types of recreation clubs have to pay the sales tax. She said certain educational activities, like safety classes, are tax-exempt, but membership dues and fees collected for recreational activities, such as fees to use a gun range, are taxed. She said the law applies to all recreational clubs, be it a tennis club or a gun club.
"This is not a new law or a new interpretation of a law," she said.
Helgerson said businesses, like individuals, are responsible for understanding the tax law and paying the taxes owed. The Department of Revenue regularly publishes information about tax laws and has information on the department's Web site at
www.dor.state.wi.us.
Helgerson said her department is concerned that the new law would not be equitable. Gun clubs would enjoy a tax exemption, but other recreational clubs would not.
Wieckert said gun club members volunteer thousands of hours each year to train young people in the safe use of guns, bows, boats, all-terrain vehicles and snowmobiles. More than 100 gun, skeet and trap shooting clubs exist in Wisconsin.
DNR records show that 8,316 volunteers conducted 2,000 courses in 2004, training more than 54,500 students in hunter education and in firearms, boat, snowmobile and ATV safety.
"These people are dedicating their time for free," Wieckert said. "The DNR can't say enough about what the Outagamie Conservation Club does. These are very professional, very skilled instructors. They are doing the state a great service by doing this and now we are going to tax them? It's the wrong thing to do."
Wieckert said if an exemption is to be created for these clubs, it must be done before the new revenue stream becomes a part of the state budget. That means he and other supporters of AB 718 must get the bill to the governor's desk before the legislative session ends in March.
The exemption would not apply to private gun clubs or game farms. State officials are unable to estimate how AB 718 would affect tax revenues.
State Rep. Dean Kaufert, R-Neenah, co-chairman of Joint Finance, said the committee likely would approve the bill. The hardest journey will be through the state Senate, he said, where lawmakers are loath to reduce income during a time of economic stress.
Kaufert and Wieckert both said the gun clubs, and their volunteer instructors, benefit the state by improving the safety and enjoyment of outdoor activities, which are a major tourism draw.
If the clubs didn't volunteer to offer state-mandated safety courses, the lawmakers said, the state would have to hire instructors.
"For that reason alone, we should make sure there isn't a tax liability for them," Kaufert said.
Doyle spokeswoman Melanie Fonder said the governor will look closely at the bill if it comes to his desk.
"If it benefits the sportsmen and sportswomen of Wisconsin, he will be glad to sign it," she said.
Ed Culhane can be reached at 920-993-1000, ext. 216, or by e-mail at
eculhane@postcrescent.com. Post-Crescent Madison bureau chief Ben Jones contributed to this report.
