4148 
TAX ON ADMISSIONS AND DUES 
to the benefit of persons in the military or naval forces of the United States; 
or (OC) exclusively to the benefit of persons who have served in such forces and 
are in need; or (2) any admissions to agricultural fairs if no part of the net 
earnings thereof inures to the benefit of any stockholders or members of the 
association conducting the same, or admissions to any exhibit, entertainment, 
or other pay feature conducted by such association as part of any such fair— 
if the proceeds therefrom are used exclusively for the improvement, maintenance 
and operation of such agricultural fairs. 
(¢) The term “admission” as used in this title includes seats and tables, 
reserved or otherwise, and other similar accommodations, and the charges made 
;herefor. 
(d) The price (exclusive of the tax to be paid by the person paying for 
admission) at which every admission ticket or card is sold shall be conspicu- 
ously and indelibly printed, stamped, or written on the face or back of that part 
of the ticket which is to be taken up by the management of the theater, opera, 
or other place of amusement, together with the name of the vendor if sold other 
than at the ticket office of the theater, opera, or other place of amusement. 
Whoever sells an admission ticket or card on which the name of the vendor and 
price is not so printed, stamped, or written, or at a price in excess of the price 
so printed, stamped, or written thereon, is guilty of a misdemeanor, and upon 
conviction thereof shall be fined not more than $100. 
Times for filing returns and payment of taxes. Sixth sentence in article 41, 
Regulations 43, part 1 (1922), amended. (T. D. 3485.) 
Registry. Article 37, Regulations 43, part 1 (1922), amended. (T. D. 3517.) 
MEMBERSHIP DUES AND FEESS 
Sgc. 801. That from and after January 1, 1922, there shall be levied, assessed, 
»ollected, and paid, in lieu of the taxes imposed by section 801 of the Revenue 
Act of 1918, a tax equivalent to 10 per centum of any amount paid on or after 
such date, for any period after such date, (a) as dues or membership fees 
(where the dues or fees of an active resident annual member are in excess of 
$10 per year) to any social, athletic, or sporting club or organization; or (b) as 
initiation fees to such a club or organization, if such fees amount to more than 
$10, or if the dues or membership fees (not including initiation fees) of an 
active resident annual member are in excess of $10 per year; such taxes to be 
paid by the person paying such dues or fees: Provided, That there shall be 
exempted from the provisions of this section all amounts paid as dues or fees 
«0 a fraternal society, order, or association, operating under the lodge system. 
[n the case of life memberships a life member shall pay annually, at the time 
for the payment of dues by active resident annual members, a tax equivalent 
to the tax upon the amount paid by such a member, but shall pay no tax upon 
“he amount paid for life membership. 
si len 9, 10, 11, and 12, Regulations 43, part 2 (1922), amended. (T. D. 
““Mimes for filing returns and payment of taxes. Article 13, Regulations 43, 
Jart 2 (1922), amended. (T. D. 3485.) 
The tax imposed by section 801 is constitutional as an excise tax and the 
statute does not impose a direct tax on property. (Masonic Country Club ov. 
Holden, Western Dist. of Michigan, April 27, 1926: T. D. 3870.) Judgment re- 
sersed on other grounds. (C. C. A., Sixth Circuit, April 6, 1927.) 
An amount paid for a share of capital stock in a social club, required to be 
purchased as a prerequisite to membership, is not taxable under section 801, 
Revenue Acts of 1918 and 1921, as an initiation fee. An initiation fee, under 
section 801, is an amount paid for the purpose of becoming a member of a club, 
‘he amount so paid being parted with absolutely. (Alliance Country Club v. United 
States, Ct. Cls., November 15, 1926; T. D. 3955.) 
SEo. 802. That every person receiving any payments for such admission, dues, 
or fees, shall collect the amount of the tax imposed by section 800 or 801 from 
the person making such payments. Every club or organization having life 
members, shall collect from such members the amount of the tax imposed by 
section 801. In all the above cases returns and payments of the amount so col- 
lected shall be made at the same time and in the same manner and subject to 
the same penalties and interest as provided in section 502. 
Onder section 802, Revenue Acts of 1918 and 1921, a club may maintain an 
action for recovery of taxes imposed upon its members by section 801 of the 
Jus y (Alliance Country Club v. United States. Ct. Cls.. November 15. 1926: T. D. 
3 Regulations 43. part 2 (1922)