Comments on: Yoga Tax is Untimely and Debatable http://blog.teachstreet.com/homepage/yoga-tax-is-untimely-and-debatable/ Find Local Teachers. Learn New Things. Fri, 20 Nov 2009 03:27:57 -0500 http://wordpress.org/?v=2.8.3 hourly 1 By: Salar http://blog.teachstreet.com/homepage/yoga-tax-is-untimely-and-debatable/comment-page-1/#comment-873 Salar Tue, 04 Nov 2008 17:56:59 +0000 http://blog.teachstreet.com/?p=753#comment-873 Many people at the Department of Revenue are not certain either. The controversy about this subject rises from the Washington Administrative Code I referenced in the post. The debate is based on whether or not yoga studios or instructors should be placed in the category of physical fitness or instructional lessons, the latter being tax exempt. The state is acting inconsistently in its discrimination of one studio versus another and there needs to be some standards put in place. The audits that are currently conducted uncover whether the yoga studio or class is offering more than just instructional lessons on yoga, which many claim is mental rather than physical fitness. If the audit concludes that the studio is combining yoga with other activities and offerings that are borderline physical fitness the Department of Revenue may try to collect the tax. In some cases, the audits uncover that the studio is instructing yoga and nothing more, and in these cases the Department of Revenue forgives the tax. The frustration for many yoga studios and instructors is that the law does not clearly define the gray area they are operating in. The Department of Revenue has suggested that if the studio or class is unclear about whether or not they need to charge a sales tax, they'd better do it anyway to be safe. If you are a yoga instructor or own a yoga studio, I think it would be a good time to consult with a CPA that specializes in tax matters, if you haven't already. Here is a great Puget Sound Business Journal article: http://www.bizjournals.com/seattle/stories/2008/09/01/editorial1.html?b=1220241600^1692880 Many people at the Department of Revenue are not certain either. The controversy about this subject rises from the Washington Administrative Code I referenced in the post. The debate is based on whether or not yoga studios or instructors should be placed in the category of physical fitness or instructional lessons, the latter being tax exempt. The state is acting inconsistently in its discrimination of one studio versus another and there needs to be some standards put in place.

The audits that are currently conducted uncover whether the yoga studio or class is offering more than just instructional lessons on yoga, which many claim is mental rather than physical fitness. If the audit concludes that the studio is combining yoga with other activities and offerings that are borderline physical fitness the Department of Revenue may try to collect the tax. In some cases, the audits uncover that the studio is instructing yoga and nothing more, and in these cases the Department of Revenue forgives the tax.

The frustration for many yoga studios and instructors is that the law does not clearly define the gray area they are operating in. The Department of Revenue has suggested that if the studio or class is unclear about whether or not they need to charge a sales tax, they’d better do it anyway to be safe.

If you are a yoga instructor or own a yoga studio, I think it would be a good time to consult with a CPA that specializes in tax matters, if you haven’t already.

Here is a great Puget Sound Business Journal article: http://www.bizjournals.com/seattle/stories/2008/09/01/editorial1.html?b=1220241600^1692880

]]> By: katie http://blog.teachstreet.com/homepage/yoga-tax-is-untimely-and-debatable/comment-page-1/#comment-871 katie Tue, 04 Nov 2008 16:52:01 +0000 http://blog.teachstreet.com/?p=753#comment-871 So... I don't understand. If yoga studios are exempt, then why are they being audited? Is it because they also teach other exercise classes? Or is it because people go to yoga now mainly for exercise (rather than instruction). Thoughts? So… I don’t understand. If yoga studios are exempt, then why are they being audited? Is it because they also teach other exercise classes? Or is it because people go to yoga now mainly for exercise (rather than instruction).

Thoughts?

]]> By: Tony http://blog.teachstreet.com/homepage/yoga-tax-is-untimely-and-debatable/comment-page-1/#comment-870 Tony Mon, 03 Nov 2008 22:26:15 +0000 http://blog.teachstreet.com/?p=753#comment-870 Couldnt agree more. This is not what is needed right now, plus the WAC seems pretty clear in its definition of yoga. Maybe TeachStreet could act as a place for yoga professionals to connect to form a class action lawsuit against the state...... Couldnt agree more. This is not what is needed right now, plus the WAC seems pretty clear in its definition of yoga. Maybe TeachStreet could act as a place for yoga professionals to connect to form a class action lawsuit against the state……

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