Thread: Article on the New KY Tax Law for Tournaments

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.

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 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 ??

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 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 ??

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).

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").

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").

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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