IOWA STATE TRAPSHOOTING ASSOCIATION
Board Meeting
December 22, 2009

 

     The Directors of the Iowa State Trapshooting Assn. held a telephone conference on Tuesday, December 22, 2009 at 9:00 pm. Present were President Dave Wickman, Zone Directors Don Wickliff, Jon Peterson, Jim Cole, Barrie Swinbank, ATA Delegate Dan Wood and Secretary/Treasurer Debra Oelmann.

     Dave Wickman reported on the IRS non-profit audit for the tax year ending 2007. Overall the audit went very well. If a non-member shoots practice during the state shoot, we need to pay income tax on that income. Therefore we need to put a sign at the practice window so shooters will let us know if they are a non-member of the ISTA or ATA. This also pertains to vendors who are non-members. Finally, the rental income from Wendall Watson on the hay ground is subject to income tax. A suggestion was made to give him a life membership to the ISTA.

     After the Board voted to not replace the awning on the clubhouse, the Cedar Falls Gun Club has indicated that they wish to have the awning replaced on the clubhouse that blew off on July 9th. The Board reviewed their decision once again and it was unanimously decided not to replace this awning. The insurance check received, less the $1,000 deductible, was $7,278.05 plus $600 received from donations or $7,878.05. The Cedar Falls Gun Club will be reimbursed 40% of this amount or $3,151.22.

     Dave stated he talked to a CPA in Mason City who is willing to review the ISTA financial statements annually at a cost of $400 per year. All the Directors were in agreement to hiring this CPA to review the ISTA annual financial statements.

     The final item on the agenda was a discussion on the sales tax audit. An email has been received from the Department of Revenue as to their position on the sales tax audit issues as follows:

  • The purchase of targets will be taxable in the consumers use tax portion of the audit.
  • Trophies will remain taxable in the sales tax audit, but the purchase of trophies will be removed from the consumers use tax audit.
  • The daily fees collected by ISTA and then passed through dollar-for-dollar to ATA is a fee to participate in the shoot and is taxable.
  • That the ISTA does not qualify for the casual sale exemption. For example, the ISTA has been having 2 to 3 events per year for the past 30 years so is considered a recurring event.
  • That the ISTA does not qualify for an exemption as a charitable or educational institution, especially related to the annual event for high school students. Fees charged to the high school students for the participation in the trapshooting events will be included as taxable fees.
    •

         It was stated that many rumors are being spread on this sales tax audit. It was decided to send a letter to the membership regarding the sales tax and IRS audits and hopefully put to rest the rumors.

         The meeting adjourned at 10:00 pm.

     

    Debra Oelmann
    Secretary