REVENUE ACT OF 1918
451
An Initiation fee under section 801 is a payment, without expectation of being
refunded, made by a person who wishes to become a member of a social or fraternal
:lub already established, and is not a payment by a person who, with others, founds
and establishes a club. (Id.)
[Title VII, Revenue Act of 1917 12]
Sec. 700. That from and after the first day of November, nineteen hundred
and seventeen, there shall be levied, assessed, collected, and paid (a) a tax
of 1 cent for each 10 cents or fraction thereof of the amount paid for admission
to any place, including admission by season ticket or subscription, to be paid
by the person paying for such admission: Provided, That the tax on admission
of children under twelve years of age where an admission charge for such chil-
dren is made shall in every case be 1 cent; and (b) in the case of persons (ex-
cept bona fide employees, municipal officers on official business, and children
under twelve years of age) admitted free to any place at a time when and
under circumstances under which an admission charge is made to other per-
sons of the same class, a tax of 1 cent for each 10 cents or fraction thereof of
the price so charged to such other persons for the same or similar accommoda-
tions, to be paid by the person so admitted; and (c¢) a tax of 1 cent for each
10 cents or fraction thereof paid for admission to any public performance for
profit at any cabaret or other similar entertainment to which the charge for
admission is wholly or in part included in the price paid for refreshment, serv-
ice, or merchandise; the amount paid for such admission to be computed under
rules prescribed by the Commissioner of Internal Revenue, with the approval
of the Secretary of the Treasury, such tax to be paid by the person paying for
such refreshment, service, or merchandise. In the case of persons having the
permanent use of boxes or seats in an opera house or any place of amusement
or a lease for the use of such box or seat in such opera house or place of
amusement there shall be levied, assessed, collected, and paid a tax equivalent
to ten per centum of the amount for which a similar box or seat is sold for
performance or exhibition at which the box or seat is used or reserved by or
for the lessee or holder. These taxes shall not be imposed in the case of a
place the maximum charge for admission to which is 5 cents, or in the case of
shows, rides, and other amusements (the maximum charge for admission to
which is 10 cents) within outdoor general amusement parks, or in the case of
admissions to such parks.
No tax shall be levied under this title in respect to any admissions all the
proceeds of which inure exclusively to the benefit of religious, educational, or
charitable institutions, societies, or organizations, or admissions to agricultural
fairs none of the profits of which are distributed to stockholders or members
of the association conducting the same.
The term “ admission ” as used in this title includes seats and tables, reserved
or otherwise, and other similar accommodations, and the charges made therefor.
Sec. 701. That from and after the first day of November, nineteen hundred
and seventeen, there shall be levied, assessed, collected, and paid, a tax equiva-
lent to ten per centum of any amount paid as dues or membership fees (includ-
ing initiation fees), to any social, athletic, or sporting club or organization,
where such dues or fees are in excess of $12 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 to a fra-
ternal beneficiary society, order, or association, operating under the lodge
system or for the exclusive benefit of the members of a fraternity itself operat-
ing under the lodge system, and providing for the payment of life, sick, accident,
or other benefits to the members of such society, order, or association or their
dependents.
Sec. 702. That every person, corporation, partnership, or association (a) re-
ceiving any payments for such admission, dues, or fees, shall collect the amount
of the tax imposed by section seven hundred or seven hundred and one from
the person making such payments, or (b) admitting any person free to any
place for admission to which a charge is made shall collect the amount of the
tax imposed by section seven hundred from the person so admitted, and (c) in
either case shall make returns and payments of the amount so collected, at the
same time and in the same manner as provided in section five hundred and
three of this act.
2 Repealed by sec. 1400 (a), Revenue Act of 1918, effective Apr. 1, 1919. See chapter 23.
