In American country clubs, there is a long tradition of discrimination against racial minorities and women. These clubs maintain that they are private and thus able to operate free from government sanction. In 2004, the Supreme Court of Kentucky ruled that the state’s Commission on Human Rights had the statutory authority to investigate private country clubs to determine if they discriminate in their membership practices. In Kentucky, if a club is found to discriminate, its members are disallowed certain tax deductions. While this is a step in the right direction to end discriminatory practices at country clubs, the Supreme Court of Kentucky still points out that private clubs have the right to discriminate without fear of legal liability. This Note evaluates other states’ reactions and statutes regarding discrimination at private clubs and contends that such approaches are more effective in eradicating discrimination in these clubs than tax consequences.