Health Club Tax in New York?

by Ryan Halvorson

Making News:

New York City residents may be forced to endure an increase in fitness facility membership fees if a proposal by New York Governor David Paterson is passed. As stated on the New York State website for the 2009–2010 Executive Budget, Paterson has proposed “personal and credit services” and “entertainment-related spending” sales taxes—among many others—to help reduce the current $13.7 billion budget deficit by about 22%. Personal services such as beauty, barbering, health salon and gymnasium services and more will all see an increase in tax. Fitness facilities also fall under the “entertainment-related spending” category, alongside movie theaters and sporting events. “The vast majority of my plan focuses on recurring reductions across every area of state spending,” stated Paterson in a press release. “In order to protect core services, however, it also contains targeted increases in revenue. Given the magnitude of our current crisis, the only way we are going to overcome our budget problems is by acting comprehensively through shared sacrifice.”

Not everyone is thrilled about the tax increase. The International Health, Racquet & Sportsclub Association (IHRSA) fears that it may result in reduced membership purchases, dampened sales and hindered healthy consumer behaviors. IHRSA “opposes any effort by the government to tax health club membership dues and services. Fitness facilities help citizens across New York State lead healthy lifestyles that result in significant health and economic benefits.” On its website, IHRSA has initiated a “call to action” where professionals can voice concerns to Gov. Paterson. Visit www.ihrsa.org to learn more.