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Abstract

Taxes, State and local, as well as Federal, are not likely to be one of the more serious problems facing the proprietor of an outdoor recreational enterprise. However, such proprietors may face for the first time the necessity of collecting and paying taxes associated with the operation of a commercial business. It is important that they become adequately informed on tax matters and that these be handled in such a way as to both comply with the law and contribute to the success of the recreational enterprise. This report is not intended as a handbook to provide ready answers to tax questions which might come to the mind of a prospective proprietor of a recreation business. The tax laws of the Federal Government alone are highly complex. In addition, every State and numerous subdivisions of State governments -- cities, counties, townships, school districts – have their separate revenue systems. This paper describes the kinds of tax problems which the proprietor of a recreational business will have.

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