Maybe.  Several WPA members that jointly own aircraft with other people have received a letter from the Department of Revenue stating that they are businesses that must collect sales tax on the revenue derived from aircraft use and dues collected from members.  Being your humble servant, I have set out to research this situation.

Not all flying clubs are created equal.  Many are commercial business’s that “hold themselves out to the public”.  These flying clubs often will lease aircraft and then rent them to pilots and students for travel and training.  Purchases such as the aircraft, fuel, avionics, maintenance, etc are tax exempt.  Sales tax is collected on the rental of the aircraft and dues collected from the users group that may call itself a flying club.  In this case the “club” brings added value and added revenue to the organization.  These clubs are professionally managed and have a place of business where the public can come and do business.