Hiyah! Washington to Tax Martial Arts
- Oct 21, 2015 | Gail Cole
In order to simplify the taxation of amusement, recreation, and physical fitness services, sales tax will soon be extended to several currently exempt services in the state of Washington.
Effective January 1, 2016, martial arts training facilities must collect and remit retail sales tax on charges to customers. As explained by the Washington Department of Revenue, sales tax applies to income "received by martial arts facilities from customers who attend instructional classes, training, competitions, etc. occurring at these facilities.” Retailing B&O tax also applies.
Sales tax is also extended to charges for indoor or outdoor facilities used primarily for boxing, kickboxing, wrestling, and mixed martial arts. Martial arts and mixed martial arts include, but are not limited to, the following:
- Brazilian Jiu-Jitsu
- Kung Fu
- Muay Thai
Additional details are available in House Bill 1150, Chapter 169, Laws of 2015.
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