Membership dues and fees

From the 2024 DOR Tax Exemption Study

82.04.4282(1,2) - Membership dues and fees Description Businesses may take a B&O tax deduction for amounts received as initiation fees and membership dues if paid solely for continuing membership in the organization and not for payment of goods or services. Purpose Recognizes that initiation fees and membership dues are not a taxable activity and are not included in the gross income of the organization. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.272 $3.398 $3.549 $3.718 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $3.115 $3.549 $3.718 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the service and other activities B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Members do not receive goods or services in exchange for paying initiation fees and membership dues. - Affects organizations rep