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Sales Tax and Memberships: Understanding the Complexities and Variances by State

  • The rise of online memberships has raised questions about whether they incur sales tax.
  • Different states have different rules regarding sales tax on health and fitness club memberships.
  • In Texas, memberships are taxable unless purchased under a written prescription for health maintenance.
  • In Missouri, sales tax depends on what members receive for their money.
  • In New York, sales tax is imposed on dues and membership fees paid to athletic clubs.
  • In South Carolina, membership fees to for-profit gyms can be exempt under certain conditions.
  • Discussions in Alaska have considered taxing gym memberships as a service.
  • IHRSA, the Global Health & Fitness Association, opposes sales tax on fitness and health club memberships.
  • Sales tax on retail memberships also varies by state.

Source: taxconnex.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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