41-2634. Rules and regulations; criteria for class A clubs.
41-2634
41-2634. Rules and regulations; criteria for class A clubs.(a) The secretary of revenue may adopt rules and regulations for theadministration and enforcement of article 26 of chapter 41 of KansasStatutes Annotated.
(b) The secretary of revenue shall adopt rules and regulationsestablishing criteria for determining whether an applicant or licenseeis a bona fide nonprofit social, fraternal or war veterans club, basedon the following standards:
(1) An applicant or licensee is a bona fide nonprofit social clubif:
(A) It is organized and operated exclusively for pleasure,recreation and other nonprofitable purposes; and
(B) no part of its net earnings inures to the benefit of any of itsprivate shareholders or members.
(2) An applicant or licensee is a bona fide nonprofit fraternal clubif:
(A) It is a fraternal beneficiary society, order or associationwhich operates under the lodge system, or for the exclusive benefit ofthe members of a fraternity itself operating under the lodge system; and
(B) such society, order or association provides for the payment oflife, sickness, accident or other benefits to its members or theirdependents.
(3) An applicant or licensee is a bona fide nonprofit war veteransclub if:
(A) It is a post or organization of war veterans or an auxiliaryunit or society of, or a trust or foundation for, any such post ororganization, organized in the United States or any of its possessions;
(B) not less than seventy-five percent (75%) of its members are warveterans and substantially all of its other members are veterans orwidows or widowers of veterans; and
(C) no part of its net earnings inures to the benefit of anyprivate shareholder or individual.
(c) Any rules and regulations adopted pursuant to subsection (d)shall be based on the same criteria and standards used to determine theright to exemption from federal income taxes pursuant to section501(c)(7), (8) and (19) of the internal revenue code of 1954, asamended.
History: L. 1965, ch. 316, § 34; L. 1972, ch. 342, § 60; L.1974, ch. 196, § 2; L. 1978, ch. 186, § 5;L. 1987, ch. 182, § 85; July 1.