POlicy letter; TAXATION OF SERVICES June 28, 1991
Topic Code: T096Taxing the User of Services (ST) Document Reference:
POlicy letter; TAXATION OF SERVICES June 28, 1991
The Department of Revenue and Finance has received your letter dated June 21, 1991. In the letter you state you are a certified personal trainer who assesses clients health and fitness and design a workout program to meet the client's personal health and fitness goals. You also monitor the progress of the client during their fitness program. You want to know if this service is taxable under Iowa state sales and use tax. Iowa Code ยง 422.43(11) lists certain services which are subject to the 4% sales tax. There is no specific listing of "fitness trainer". The only activity of some comparability is "reducing salons." However, IAC 701-47(422) states that " reducing salons. means "any type of establishment which offers facilities or a program of activities for the purpose of weight reduction." I cannot determine from your letter whether your training is for weight reduction only. Some people may simply wish to maintain a physically fit body and in no way be concerned with weight loss. If this is the case, and that is your main objective, fitness and not weight loss, then I believe you are not subject to sales tax. However, if part of your program is for weight reduction, then this may be subject to sales tax. I caution you as to the above because the activities you describe could easily be viewed as taxable as a weight reduction business. If you will be providing weight reduction and fitness training, you should make sure you make note of the difference and impose tax accordingly. I hope this helps you. Obviously this is not a black and white issue and based on the information, I cannot with certainty, determine whether or not tax is applicable. Please note this is an informal opinion of the Department and is not necessarily binding in future proceeding actions. Sincerely, Susan E. Voss Policy Section Technical Services Division