Hiyah! Washington to Tax Martial Arts

Oct 21, 2015 | Gail Cole

Martial arts classes soon to be subject to sales tax in Washington.

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:

Akido
Brazilian Jiu-Jitsu
Capoeira
Hapkido
Judo
Jujutso
Karate
Kung Fu
Muay Thai
Sambo
Sanshou
Savate
Sumo
Taekwondo

Additional details are available in House Bill 1150, Chapter 169, Laws of 2015.

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Avalara Author

Gail Cole

Avalara Author Gail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.