Photo by mosley.brianAs Martin noted in this morning’s roundup, D.C. Council members were bombarded with literally thousands of emails on Thursday after local gym and yoga studio owners organized their customers to speak out against a possible tax on fitness memberships and classes. No member of the D.C. Council has actually proposed such a tax, but the legislative body is grappling with a $550 million budget problem, and interest groups are currently floating a number of dramatic revenue generating ideas. The council won’t take a vote on the budget until later this month, but the committee of the whole is spending this morning discussing some of those proposals.
The concept of a gym tax comes from the Fair Budget Coalition, an umbrella group comprised of dozens of local advocacy and nonprofit organizations. The coalition has proposed extending a sales tax to a variety of services, including gym memberships, but also things like cleaning services, pet grooming, day spas, tanning salons, even tennis lessons. The idea, as explained on the D.C. Fiscal Policy Institute’s blog by Katie Kerstetter, is that we all pay sales taxes when we buy goods, but not when we purchase services. The assumption here is that wealthier residents avail themselves of such services to a greater extent, and can therefore afford to pay a 6 percent sales tax on those transactions. “You pay tax on your yoga mat, your leggings, your water bottle — even a yoga DVD. Why do you not pay a tax on a yoga class?” Kerstetter writes.
Following Thursday’s emails, council members do appear to be balking at the concept.
“I don’t want another 4,000 e-mails about yoga,” Kwame Brown (D-At-large) said at today’s hearing.
A list of the services the Fair Budget Coalition is proposing should be taxed is below the jump. You can tune in to the rest of the hearing on Channel 13.