Missouri Taxes Yoga
Here's an excerpt from the article:
"At issue is a Missouri statute that mandates a 4 percent tax on fees charged for athletic events like Cardinals games, fitness club memberships and other entertainment, amusement or recreation businesses.
Yoga teachers say the service they provide is not recreation, but a form of physical preparation for meditation, based on ancient Hindu texts, with the ultimate goal of spiritual enlightenment.
But even yogis concede the American interpretation of yoga that has blossomed, especially in the last 30 years or so, has become popular for its stress-reducing properties and physical health benefits."
It's a debate we've been having in the yoga community for ages, and both sides have compelling arguments. Do you think yoga classes should be subject to state sales taxes?



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Comments
Yikes, hope they don't pass that law in Wisconsin. I've normally seen sales tax as a tax on a tangible piece of property, so books, food and such things are included. But I guess it is fair since events/membership are being taxed then yoga, whether for fitness or enlightenment, still falls under the event/membership umbrella. The studios/teachers can (and probably will) pass this tax directly onto the consumer, as is seen with books, food and such things. It will require more paperwork on the side of the studio, which isn't good. The article talks about the counter argument that yoga is not exercise, but a spiritual practice. As long as the state taxes all paid events/memberships then I don't see this as a valid argument. I couldn't tell from the write-up, but if the tax is specifically to fitness based events/memberships, then I think that the enforcement of taxes is on a little more shaky ground.
Posted by: David Turner | November 4, 2009 4:13 PM
This is a fascinating scenario. Yes, I believe that yoga classes should be taxed as other fitness classes. This is an area that will require some serious "soul" searching of American yogis. There are examples of yoga being banned from schools because non-practicing, often Christian, taxpayers claim that it is a religious practice. In that circumstance, yogis argue that it ISN'T a spiritual practice but a physical (and mental) exercise. Can we have it both ways?
If a yoga studio is able and willing to define themselves as more spiritual than physical in their mission statement, then there should be room for not being taxed. Having left hard-core Christianity behind, I am not comfortable practicing yoga in the spiritual sense. I suspect that most understandings of the spiritual are actually our lack of knowledge of the physical. Meditation is not necessarily a spiritual practice.
Tip of the iceberg. I'm digging into the Establishment Clause right now, so this caught my eye. Thank you for blogging about this!
Posted by: Christine | November 4, 2009 4:16 PM
I think yoga should be treated the same way as fitness classes for tax purposes.
The bigger question is why would fitness be taxed at all?
If our society is trying to motivate people to partake in activities that will fight disease while enhancing and prolonging life, why on earth would a government put a tax on it?
The idea of taxing someone for wanting to be healthy makes no sense.
Posted by: David Rothstein | November 4, 2009 5:51 PM
*****
The problem is that the word "Yoga" is used for everything from pure fitness to pure spirituality and everything in between, and every combination of everything in between.
I personally embrace this diversity, but just try to imagine how confusing it is to an outsider looking it.
Bob W. http://YogaDemystified.com
Posted by: Bob Weisenberg | November 4, 2009 8:21 PM
This is nothing new. A few years ago, Connecticut add 6% state tax on everything fitness category. Gyms, health clubs, kung-fu studios and even yoga must pay this tax.
States are looking for Money anywhere they can find it. Yes People will still go to fitness places for their heath, and pay few dollars more to use it.
Posted by: Renee | November 5, 2009 7:25 AM
It's only fair to tax the classes. I do believe that yoga is a spiritual endeavor. However, admission to church is free, and therefore not taxed likely because of that. When they start charging admission to hear a preacher, churches will be taxed just like everyone else. This is a fair practice because it's across the board.
Posted by: Sara | November 5, 2009 8:08 AM
America' s tax system is actually unconstitutional but that is another discussion. Like someone said, you can't have it both ways. The majority of yoga classes in the west are completly physical. Whether I Agree or not, it makes since for our tax obssessed government to make studios pay too.
Posted by: Shanna | November 5, 2009 8:16 AM
Pragmatically speaking, a good indicator of whether a particular activity or organization should be exempt from taxation is whether it is engaged in for profit or not for profit activities. Most yoga studios are engaged in commercial operations designed to make a profit. Many sell apparel and accessories. The fees they charge are in excess of their operating costs. The students who pay these fees are not allowed to deduct them as charitable donations from their tax returns. It makes sense to tax these kinds of entities.
In contrast, look at a zen center. I was a member at a very organized zen center. I paid $75 a month in membership fees to go towards overhead and instruction costs. These fees were waived or reduced for individuals who could not afford to pay them. The zen center sold zafus and zabutrons made by one of the teachers. The zen center was not set up to turn a profit and it did not turn a profit. It depended on donations and we were allowed to deduct them from our tax returns.
So really the deciding factor in whether yoga should be taxed as a fitness activity is whether it is for profit or not for profit.
Posted by: abby | November 5, 2009 10:29 AM
Where there is money there are taxes.
Posted by: Patrick Holiman | November 5, 2009 11:03 AM
Isn't taxing yoga sort of like taxing jogging? How do tax something like that?
Posted by: Britney Bennett | November 5, 2009 1:15 PM
The question isn't whether Yoga is spiritual or not. The question is whether it is a religion. If it was an organized religion, it would be exempt from taxes. If a yoga organization incorporated as a religion the members of the congregation could do all the yoga they wanted and it wouldn't be taxed. Do you do religious or secular Yoga? Oh, which denomination of Yoga do you belong to? Do you use the missionary position?
Posted by: Scott | November 5, 2009 6:48 PM
I'm only against the yoga sales tax b/c I know it's going to end up on the bill of the student (which is what I am) (and yoga classes are pricey as it is), HOWEVER, I think yoga studios should consider the fact that other religious institutions/organizations do not charge for the services that they provide. They are non-for-profits whereas yoga studios are not and, therefore, should be taxed.
But I'll fight against it so I don't have to pay for it. I think my post-income tax income is taxed enough will sales taxes as it is.
Posted by: AdriB | November 8, 2009 2:34 PM