Head’s up everybody: Effective January 1, 2016, we will be forced to raise everyone’s tuition by 10% to accommodate the new tax laws detailed below in a post by GB Seattle. You won’t have to do anything to make the changes. We will take care of that. See the front desk if you have any questions. We apologize for the inconvenience:
“Big Change starting in January 2016:
During the 2015 regular legislative session, the legislature passed House Bill (HB) 1550. This bill provides that charges for the use of an “athletic or fitness facility” are retail sales, subject to retail sales tax and retailing business and occupation (B&O) tax. This includes all charges for any associated services or amenities taking place at such a facility, including instruction, lessons, etc. Martial arts and mixed martial arts facilities are specifically defined as athletic and fitness facilities in the bill.
Why the charge?
HB 1550 was the result of a collaborative effort, dating back to 2010, between the legislature, stakeholders, and the Department of Revenue. Taxpayer uncertainty as to when such services are retail in nature, and other ambiguities in the statute, resulted in numerous controversies.
The bill was passed to eliminate widespread confusion and provide a solid framework where business and consumers are taxed in an express and consistent manner. Specifically, the legislative wanted to provide equal tax treatment to similarly situated taxpayers.”