Article on the New KY Tax Law for Tournaments

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11-05-2018, 10:02 PM
bandchaser

Article on the New KY Tax Law for Tournaments

After reading Pab's (Austin) reply about the taxes on entry fees, I just had to look a little further into it. This also includes clubs and organizations one day events. That each of these will have to apply for a tax I.D. number and report all tax revenue.

New Kentucky Sales Tax to Include Tournament Entry Fees

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11-05-2018, 11:07 PM
GREENFISH

Uugghhh.....

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11-06-2018, 05:48 AM
wannabe fisherman

Hey SLAB !!! We need an ANGRY button !!!
11-06-2018, 09:32 AM
Super D

Funny how the article you linked mentions, "Bass tournaments" but not crappie tournaments, lol
11-06-2018, 09:59 AM
trypman1

Lets see now, if you pay $4500 plus tax-$270 to enter a big tournament and win your money back, you also get a 1090 form for the proceeds, and you pay taxes on that. And, and & and. Not to good for the average tournament fisherman.
11-06-2018, 08:03 PM
redearhoosier

Wow, our government is one greedy machine, it really is!! This is awful.
11-08-2018, 08:38 AM
cajun fryer

Quote:

Originally Posted by Super D

Funny how the article you linked mentions, "Bass tournaments" but not crappie tournaments, lol

The article might have only said Bass but it is everything. I was at the crappie USA meeting last weekend and they addressed it. There going to tax grass cutting there going to tax crappie and carp tournaments also.
11-08-2018, 06:36 PM
Clint

The way the law is written now it includes Non-Profit Organizations also. So if my church holds a concert and charges admission they have to collect tax on the tickets. When this fact was discovered there were some serious out-cries about that part. The State Reps said they would change that part in this upcoming session. If that happens all the tournament organizers have to do is make sure their organizations are chartered under Section 501 as Non-Profit, and it will not be subject to the tax. Now for the Big Tournament groups that may not be feasible, but for the little local clubs it is a fairly easy thing to do. My Ham Radio Club is a 501(c) organization and all it takes is a post card every year to keep our classification.
11-09-2018, 06:19 PM
perchjerker108

Clint, good post. Hope this helps with the fishing tournaments. Sad, but we truly have some idiots making laws in this state.
11-09-2018, 06:33 PM
CrappiePappy

Quote:

Originally Posted by perchjerker108

Clint, good post. Hope this helps with the fishing tournaments. Sad, but we truly have some idiots making laws in this state.

Maybe so, PJ ..... but, some of our lakes could use a few less Bass Tournaments. :twocents
11-10-2018, 07:02 AM
Wormin

Quote:

Originally Posted by CrappiePappy

Maybe so, PJ ..... but, some of our lakes could use a few less Bass Tournaments. :twocents

X2.
11-10-2018, 11:11 AM
perchjerker108

Crappiepappy, I agree we have a lot of tournaments, both for Bass, Crappie, & Catfish, but I guess if you have a pile of money in your boat, motor, truck pulling it and equipment. you need to compete and see what you can do. I know most Bass tournaments release the fish which is good. Don't know about the Crappie and Catfish tournaments, if they don't release the fish back to the lake, this is bad. My problem is with taxing the entrants to enter a tournament. If it's a 100% payback, then no one is making any money. Why would you tax this?. If it's not a 100% payback then the sponsor of the tournament should pay the tax on the profits, not the anglers.
11-10-2018, 12:53 PM
CrappiePappy

Quote:

Originally Posted by perchjerker108

Crappiepappy, I agree we have a lot of tournaments, both for Bass, Crappie, & Catfish, but I guess if you have a pile of money in your boat, motor, truck pulling it and equipment. you need to compete and see what you can do. I know most Bass tournaments release the fish which is good. Don't know about the Crappie and Catfish tournaments, if they don't release the fish back to the lake, this is bad. My problem is with taxing the entrants to enter a tournament. If it's a 100% payback, then no one is making any money. Why would you tax this?. If it's not a 100% payback then the sponsor of the tournament should pay the tax on the profits, not the anglers.

I think a organization with a tournament that has 100% payback should be considered a "non-profit" organization & therefore not subject to the tax. But, if taxes are to be collected for fishing tournaments, then those taxes should end up in the hands of the KDFWR and not the govt. coffers. But, that's just my :twocents on the matter.

This tax change took effect in July of this year, so I'm wondering if any of our "clubs", "fruit jar tournaments", or CUSA members have already been affected by this or even knew to comply with this law ?? :scratchhead
11-10-2018, 10:29 PM
ccollins

Quote:

Originally Posted by CrappiePappy

I think a organization with a tournament that has 100% payback should be considered a "non-profit" organization & therefore not subject to the tax. But, if taxes are to be collected for fishing tournaments, then those taxes should end up in the hands of the KDFWR and not the govt. coffers. But, that's just my :twocents on the matter.

This tax change took effect in July of this year, so I'm wondering if any of our "clubs", "fruit jar tournaments", or CUSA members have already been affected by this or even knew to comply with this law ?? :scratchhead

Cusa members has been affected, the Ky/ Barkley lake tourney they took the tax out of the winners proceeds. ( so I was told by another source).
11-11-2018, 09:38 AM
CrappiePappy

Quote:

Originally Posted by ccollins

Cusa members has been affected, the Ky/ Barkley lake tourney they took the tax out of the winners proceeds. ( so I was told by another source).

That's curious .... since the way I read it was the 6% "sales tax" was to be added to the Entry Fee, not the "winnings" (which should be considered as "income"). :dono
11-11-2018, 10:19 AM
pab1981

Quote:

Originally Posted by CrappiePappy

That's curious .... since the way I read it was the 6% "sales tax" was to be added to the Entry Fee, not the "winnings" (which should be considered as "income"). :dono

They can do the money however they want as long as they get six percent of total entry fees. Cusa decided to pull it out of their lower paying spots i.e 4th/5th rather than raise entry fees. They(tourney groups) also have to collect six percent on memberships now also. Crappie USA decided to eat that cost rather than pass on to members.

As mentioned then we get taxed again on what we win(income) if you are fortunate enough to do well.

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11-11-2018, 09:46 PM
ccollins

Quote:

Originally Posted by pab1981

They can do the money however they want as long as they get six percent of total entry fees. Cusa decided to pull it out of their lower paying spots i.e 4th/5th rather than raise entry fees. They(tourney groups) also have to collect six percent on memberships now also. Crappie USA decided to eat that cost rather than pass on to members.

As mentioned then we get taxed again on what we win(income) if you are fortunate enough to do well.

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Im no accountant but seems to me that if your taxed on your winnings ( and I know your to count it as income) what all could be used as deductions? This could be a plus as in a yrs time I'm sure there would be more deductions (loss) than winnings.