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The sales and use tax is imposed on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania. The tax is also imposed on certain services relating to such property and on the charge for specific business services. Major items exempt from the tax include food (not ready-to-eat); candy and gum; most clothing; textbooks; computer services; pharmaceutical drugs; sales for resale; and residential heating fuels such as oil, electricity, gas, coal and firewood. Club dues are not a taxable item for sales tax in PA.
Well you may wish to organize your club under the non-profit umbrella. Let me get you some more info on that. One minute
Organizations that may be exempt under Internal Revenue Code section 501(c)(7), if they meet the requirements for exemption, include--
To be exempt, a social club must meet the following requirements—
Although they are exempt from income taxation, social clubs are generally required to file annual returns of their income and expenses with the Internal Revenue Service. If a club has unrelated business income , it must file an unrelated business income tax return. In addition to filing an annual exempt organization return, social clubs may be required to file other returns and pay employment taxes. Some clubs may be required to file certain returns electronically. The club can have employees and they work a lot like a for profit business but have advantages. You will need to speak with an attorney in your area about organizing as a non profit club and then apply for your exempt status.
I know the above is alot to think about but you should be better prepared to speak with an attorney now since you know you have another option.