Tennessee’s Department of Revenue announces sales tax exemptions to dues and fees paid to physical fitness facilities.
Tennessee’s Department of Revenue announced exemptions to many dues and fees paid to physical fitness facilities from a 10% state sales and use tax.
According to the notice, the tax exemption applies to admissions costs to “any person principally engaged in offering services or facilities for the development or preservation of physical fitness.” Fitness centers include gyms, Pilates, and yoga studios.
The exemption is a result of new legislation passed earlier this year. The law specifically applies to gyms under 15,000 square feet, which were required to pay what was codified as an “amusement tax” under state law.
“Whenever we eliminate taxes on businesses, we create jobs,” said Tennessee Gov. Bill Lee at the bill signing ceremony. “Repealing the gym tax is an important step in reducing the burdens on small businesses in our state.”
The NFIB led the opposition to the tax in Tennessee.
“Thanks to Governor Bill Lee and great leadership from members of the Tennessee General Assembly, tax fairness for small gym owners and their customers is now a reality,” said NFIB State Director Jim Brown. “NFIB also thanks the 5,500 Tennesseans who made personal visits and calls to their elected officials and sent 50,000 emails to legislators to ‘Toss the Tax.’ It was a tremendous grassroots effort that will have a positive impact.”
Fitness facilities aren’t entirely off the hook for sales taxes, however. The notice clarifies that any retail items, such as sports drinks and clothes, are not exempt from sales taxes. Additionally, country clubs, golf courses, and boat clubs did not receive an exemption.
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