Senate panel passes bill to codify hunting/fishing club membership exemption, amid calls for clearer wording

The Senate Revenue & Tax Committee voted to pass House Bill 1627, which codifies a DFA practice exempting membership dues paid to groups that own land for the primary purpose of hunting or fishing.

Sen. Ricky Hill, sponsor, said the bill ‘‘codify[s] what DFA is already currently doing’’ and aims to protect small, owner‑operated hunting clubs from taxation of membership dues. Representative Jeremiah Moore, the House sponsor, told the committee his intent: membership dues charged by groups that jointly own land ‘‘for the primary purpose of hunting and fishing’’ should not be taxed; motel charges and other singular taxable items were never intended to be exempt.

Paul Gehring of the Department of Finance and Administration warned that existing Arkansas law treats a non‑taxable service combined with taxable goods or services as a taxable transaction unless those taxable components are separately stated. Gehring said the draft amendment would clarify that membership dues for common ownership remain nontaxable but any bundled taxable goods or services—lodging, prepared meals, sales of tangible items—should remain taxable and should be separately itemized on bills or receipts to avoid audit exposure.

Committee members raised similar concerns. Several said the bill’s repeated use of the phrase ‘‘access to land for the primary purpose of hunting and fishing’’ provides some protection but suggested statutory language could be clearer to avoid future audit risk, particularly for enterprises that charge large membership fees that include lodging or commercial services.

Representative Moore and the sponsor emphasized the bill does not intend to create wholesale exemptions for businesses offering taxable accommodations or food. After discussion, the committee passed the bill by voice vote; several members urged follow‑up statutory clarifications in a later session to prevent future taxpayer confusion or audit liabilities.

The bill’s passage will leave DFA and the General Assembly to monitor how invoices and business practices distinguish nontaxable membership fees from taxable goods and services.