Content area
Full text
No new tax is ever popular, but country club members look at President Clinton's elimination of the deductibility of club dues like they look at a slice into a water hazard.
The Tax Act of 1993 eliminated the old 80 percent deductibility of club memberships, including country clubs, fraternal clubs, business clubs, athletic clubs and even airline travel clubs. Businesses who could give their employees club memberships to use for customers, then write off the dues as a business expense, cannot write off club expenses anymore.
But area country club managers say either their clubs haven't been affected by the deduction elimination, or the real effects of the elimination won't be apparent until 1995.
"We really haven't seen any change in membership usage out here," said Mike LaValley, manager of Oneida Golf & Riding Club in Green Bay. "We're somewhat anticipating some kind of change, but we haven't seen it yet."
"Members are concerned -- it's a topic of conversation from time to time," said Mike Evarts, manager of North Shore Golf Club in the town of Harrison. "I think we won't really feel the effect until '95. I think people will sit back and assess on how business will go."
Businesses formerly could deduct 80 percent of both business-related club dues and meals and entertainment. The meal/entertainment deduction has been decreased to 50 percent for either 1994 or corporations whose tax years begin after Dec. 31, 1993.
"It certainly has had somewhat of an impact," said Keith Spritz, senior tax manager at Schumaker Romenesko & Associates in Appleton. "If you're talking about the restaurant industry, it probably isn't that big a deal. Country clubs, I would think they would have more of an impact."
But, said Jack Richardson, manager of Oshkosh Country Club, "A lot of members have been discussing...