Sales Tax on Gym Memberships

Gym memberships are usually considered taxable services, but there are instances when they can be exempt from sales tax.

Section 151.0028 of the Tax Code states that memberships in health and fitness clubs are taxable as amusement services.  However, Rule 3.98 (g)(7) of the Texas Administrative Code provides a sales tax exemption if the membership is purchased under a written prescription of a licensed practitioner for the primary purpose of health maintenance or improvement. The prescription must be dated on or before the sale date and specify the type of health treatment required as well.  Prescriptions written after the sale of the membership fail to qualify for the exemption.  This applies to new and renewed memberships only and a new prescription is required for each membership renewal. 

To read a hearing about sales tax and gym memberships click here or to read the Texas Administrative Code concerning Amusement Services click here.