The state of NJ wants to call my studio a Health Club. All of my clients come in for instruction. They do not come in and just work on machines.
I have a small studio about 2, 000 square feet with one Multi station, Smith machine, couple of treadmills and bikes. (which we use for Personal Training sessions” . The tax lady said because I had sign for “grab & go” $1.00 for powerbars I am to collect tax on it! (I lose money on that $ by the way) ( the sign was there but there was no product” We had no powerbars or any items. We just forgot to put away the sign. Help!
I believe that you made an honest mistake but it is appearances that count, and that’s what the tax representative was reacting to. Your mentioning that you forgot to put the sign away suggested to her that there may be other things that you want to hide.
I would bite the bullet and talk with a business lawyer to get his advice.
It’s a gray area in that you have similar equipment that a gym or health club have.
I would comply in that it’s on a matter of logistics, does it really matter if you’re classified as a Health Club? Where will it make the difference? Your clients know what you do.
If you had no power bars, why is she questioning you?
Talk to your lawyer
I agree with Susan. However when the Gov. gets involved in a business it is usually to increase their revenue. If this is the case, you must decide what will cost you more. You must calculate the cost of compliance with that of an attorney. Take the least expensive route. I do not think this will affect your clients. Good luck, Brian Rozzi. I FORGOT, IF YOUR STATUS DOES CHANGE, MAKE SURE YOUR INSURANCE COMPANY KNOWS!