MEDIA ALERT: Working Out at the Gym Really Can be “Taxing” — Depending on Where You Live

With Many Looking to Shape-up for Summer, Wolters Kluwer Tax & Accounting US Shows Where Taxes Are Imposed on Gym, Health, Fitness and Athletic Club Memberships

RIVERWOODS, Ill.--()--Your body isn’t the only thing that can slim down after joining the gym — your wallet can, too, with the added sales taxes imposed on these memberships. Wolters Kluwer Tax & Accounting US recently examined which states impose sales taxes on memberships — and the results are split.

“While many base gym memberships on factors such as facility equipment and location, it may be worth asking how much of your total fees include sales taxes.”

Nearly half of all states impose taxes on gym memberships while the rest either exempt memberships or don’t have state sales taxes at all.

Here’s the breakdown:

  • Texas, Florida and New Jersey are among 24 states, along with the District of Columbia, that currently impose sales taxes on membership fees.
  • States that do not impose sales taxes on membership fees include California, Illinois and New York.
  • Arkansas, Delaware, Montana, New Hampshire and Oregon do not impose statewide sales or use taxes.
  • In North Dakota, sales taxes are imposed on amusement, entertainment and athletic club fees, but memberships to nonprofit clubs operated solely by non-salaried officers and staff are exempt.

The accompanying map & info graphic showing which states do and don’t impose taxes on gym, health, fitness and athletic club memberships is available by clicking here.

“Some states that impose sales tax on fees for gym, health, fitness and athletic club memberships have carved out exemptions, such as membership fees paid to nonprofit civic organizations like the YMCA,” said Carol Kokinis-Graves, Senior State Tax Analyst for Wolters Kluwer Tax & Accounting US. “While many base gym memberships on factors such as facility equipment and location, it may be worth asking how much of your total fees include sales taxes.”

Ms. Kokinis-Graves is available for interviews to discuss specific state sales tax rates imposed on gym memberships and other state sales and use tax issues.

To arrange interviews with Ms. Kokinis-Graves or other state and federal tax experts from Wolters Kluwer Tax & Accounting US, please contact:

Contacts

Wolters Kluwer Tax & Accounting US
Laura Gingiss, 847-267-2213
Laura.Gingiss@wolterskluwer.com
or
Eric Scott, 847-267-2179
Eric.Scott@wolterskluwer.com

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