Nashville Golf & Athletic Club v. Huddleston

OPINION

ANDERSON, Justice.

The first question raised in this sales tax direct appeal by the Commissioner of Revenue is whether “initiation deposits,” which are paid by members upon joining the taxpayer’s club, are taxable under Tenn.Code Ann. § 67-6-212(a)(l) as sales at retail of “dues or fees to membership sports and recreation clubs,” or whether they are nontaxable loans or deposits. If the deposits are taxable sales, a second question to be answered is whether they are nevertheless exempt from taxation under Tenn.Code Ann. § 67-6-330(a)(14) as “membership assessments for capital…