SOVREN Sales Tax Fund

SOVREN and Washington State Sales Tax

In July of 2011, the Washington State Department of Revenue issued Excise Tax Advisory (ETA) 3167.2011. This ETA “clarified” the distinction between nontaxable and taxable charges often associated with sport activities and sporting events.   Specifically, it clarified the necessity to collect sales tax on entry fees.  SOVREN, along with just about every other organization in the state, missed this ETA and continued to not collect sales tax.

We became aware of this change in early 2014 and added sales tax to our entry fees at that time.  We also engaged a CPA who specializes in sales tax issues and performed a self audit under his direction.  The audit showed that we owe the state about $42,000.  Through our CPA we have negotiated a payment plan with the state to pay over a 10 month period.

As I mentioned at the Sunday morning Driver’s Meeting at the Spring Sprints, several club members have offered to go through their log books, see what races they ran in 2012 and 2013, and donate the amount they would have paid in sales tax to the club to help with this bill. Thank you club members who have done this already.  For myself, I took the easy approach as one member suggested by using $40.00 per race and $20.00 for the Hillclimb.

Later, several members asked for copies of the old entry forms to use for determining the taxes more accurately.  Rather than print and distribute them, my wife Pat put together this chart:

2012 AND 2013 Entry Fee Tax

Spring Sprints and Fall Finale

  Entry Fee 2 Day       42.75      

  Early Bird 2 Day       33.25                                                                  

  1 Day                      30.88                                                                   

  1 Day Early Bird       21.38                                                                   

  Novice Day              14.25                                                                  

  Test & Tune             11.88

  Transponder Rental    3.33

SPOKANE FESTIVAL OF SPEED

  Entry Fee 2 Day              39.15

  Early Bird 2 Day              30.45

  1 Day                             28.28

  1 Day Early Bird              19.58

  Transponder Rental           3.05

                                                                                             

Pacific Northwest Historics

  Entry Fee 3 Day        52.25

  Early Bird 3 Day        42.75

  Transponder Rental     3.33

 

Maryhill HillClimb

  Entry Fee              16.88

 

If you want to make a donation to help the club towards paying off this tax bill, send a check payable to SOVREN (US Funds) and note it is for the Sales Tax Fund to:

SOVREN

PO Box 1102

Woodinville, WA  98072

Or to pay by credit card. Hit the continue button below.

Thanks,

Jim Johnson

SOVREN President