Are clubs such as the american legion and vfw who sell alcohol, tax exempt?

I live in a dry county, but we have an american legion that doubles as a bar that has a live band on the weekends, serves alcohol and charges a cover charge. I was just wondering if they have to pay sales tax or are they exempt because they are charitable organization?

They might be exempt, but YOU are not. In most cases, organizations such as the Legion and VFW are required to collect and render all relevant taxes from their sales. That includes food, beverage, sales and alcohol taxes as appropriate.