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California Sales Tax: Won the Battle, Not the War

The proposal to charge sales tax on personal training services in California will likely die in the state’s legislature this week, relieving some of the health club industry’s anxiety over a sales tax imposition in response to the state’s fiscal crisis.

IHRSA alerted members to the tax proposal on April 18th, which led to over 500 emails being sent to members of the California Assembly asking them to oppose any tax on healthy lifestyles. IHRSA would like to recognize those members who spoke up to protect our industry and defeat harmful disincentives for exercise.

Assembly Bill 2540 sought to impose the state’s gross receipts tax on various services, including personal training. If AB 2540 is not heard in a committee before Friday, April 27—and it is likely that it won’t—it will be dead. 

However, this success remains overshadowed by California’s significant debt. “This will not be the last time the sales tax issue crops up,” said Tim Sullivan, IHRSA’s Senior Legislative Analyst. “States will continue to grapple with large deficits for the foreseeable future, which means a sales tax is always a possibility, even if it’s been defeated before.” Sullivan urges all clubs, in California and across the country, to stay on alert for sales tax proposals.

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