| WAC183 |
Amusement,
recreation, and physical fitness services. |
| SOURCE |
DOCUMENT |
DETER. NO |
DATE OF ISSUE |
DESCRIPTION |
| WAC: |
458-20-183 |
|
11/01/1995 |
Amusement, recreation, and
physical fitness services.Effective 12/2/95 |
| RCW: | 82.04.050(3) |
|
2004 |
"Sale at retail,"
"retail sale" |
| |
82.04.250 |
|
1993 |
Tax on Retailers |
| |
82.04.290 |
|
1993 |
Tax on international investment
management services or other business or service activities. |
| |
82.04.419 |
|
1983 |
Exemptions--County, city, town,
school district, or fire district activity. |
| |
82.04.4271 |
|
1981 |
Deductions -- Membership fees and certain service fees by
nonprofit youth organization. |
| |
82.04.4282 |
|
1994 |
Deductions -- Fees, dues,
charges |
| |
82.08.020 |
|
1992 |
Tax imposed -- Retail sales --
Retail car rental. |
| |
82.08.0291 |
|
1994 |
Exemptions Sales of amusement
and recreation services or personal services by nonprofit youth organization
Local government physical fitness classes. |
| |
82.12.020 |
|
1998 |
Use tax imposed. |
| ETA: | |
|
|
| |
3167.2011 |
|
07/01/2011 |
Taxability of Fees Charged for Amusement and Recreation Services The Department of Revenue has issued the following Excise Tax Advisory (ETA):
ETA 3167.2011 Taxability of Fees Charged for Amusement and Recreation Services Charges for amusement and recreation services provided to a consumer are subject to retail sales tax under RCW 82.04.050. This Excise Tax Advisory (ETA) clarifies the distinction between nontaxable charges and taxable charges often associated with sport activities and sporting events, such as:
Basketball, football, hockey, and soccer leagues;
Cycling, running, swimming, and triathlon events; and
Baseball, golf, softball, and tennis tournaments |
| |
3003.2009 |
|
2/2/09 |
Taxability of Yoga, Tai Chi, and Qi Gong |
| |
3015.2009 |
|
2/2/09 |
Camping Clubs Receiving Initiation Fees and Dues Income |
| |
3080.2009 |
|
2/2/09 |
Use of market comparisons by golf businesses reporting on the "actual records of facilities usage" method |
| |
3098.2009 |
|
2/2/09 |
Health and physical fitness clubs receiving initiation fees and dues income |
| |
3104.2009 |
|
2/2/09 |
Physical fitness services – specialized exercise and conditioning activities |
| |
2010.04.08.183 |
|
10/1/02 |
Health & Physical Fitness Clubs Receiving Initiation Fees & Dues Income Revised 2/2/09 See ETA 3098.2009 |
| |
2023.08.183 |
|
4/21/05 |
Physical Fitness Services - Specialized Exercise and Conditioning Activities Revised 12/1/08 |
| |
2023.08.183R1 |
|
12/1/08 |
Physical Fitness Services - Specialized Exercise and Conditioning Activities - This advisory clarifies the distinction between physical fitness services, which are retail sales subject to retailing B&O and retail sales taxes, and therapeutic activities and instructional lessons in physical fitness, which are subject to the service and other B&O tax. This ETA has been revised to recognize that a new ETA 2034.08.183 addresses the taxability of Yoga, Tai Chi, and Qi Gong classes. Revised 2/2/09 See ETA 3104.2009
|
| |
2031.04.183 |
|
4/28/06 |
Camping Clubs Receiving Initiation Fees and Dues Income Revised 3/6/08 |
| |
2031.04.183 |
|
3/6/08 |
Camping Clubs Receiving Initiation Fees and Dues Income (First Revision) ETA 2031 explains the tax-reporting responsibilities of camping clubs that charge initiation fees and dues for membership in the camping club. The ETA has been revised to explain how income received by camping clubs, whether from the sale of a membership, an annual periodic fee, or other charge, is sourced for retail sales tax purposes. Revised 2/2/09 See ETA 3015.2009 |
| |
2034.08-183 |
|
12/1/08 |
Taxability of Yoga, Tai Chi, and Qi Gong - This advisory is to explain the tax reporting responsibilities of persons providing Yoga, Tai Chi, and Qi Gong classes. Revised 2/2/09 See ETA 3003.2009
|
| INDUSTRY GUIDES: |
|
06/17/2005 |
Pilates &
Other Physical Fitness Services Guide |
| | |
|
Nonprofit
Organizations |
| SPECIAL
NOTICES: |
|
|
|
| Subject
Title Reference: |
|
|
|
| Tanning |
|
|
03/02/2011 |
Sunless Tanning is a Retail Sale |
| | |
01/10/2002 |
Use Tax Obligations of Amusement and Recreation Businesses |
| | |
04/21/2005 |
Physical Fitness Services - Specialized Exercise and
Conditioning Activities |
| DIRECTIVE: | |
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| RPM: |
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| WTD: |
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| |
2 WTD 243 |
85-306A |
|
SALES
TAX -- AMUSEMENT AND RECREATION -- DANCING -- COVER CHARGES -- ALLOCATION OF
INCOME. Where service activities consisting of both retail sales taxable
amusement services (dancing) and non-sales taxable services are provided at
the same place of business, admission to which is charged by a fee, the
physical segregation of the facility serves to automatically allocate and
apportion the admissions income between sales and services.Technically precise allocation by measuring
the respective areas is neither required nor generally practicable. |
| |
4 WTD 281 |
87-348 |
|
B
& O AND RETAIL SALES TAX -- AMUSEMENT AND RECREATION BUSINESS -- TENNIS
-- ETB 503 -- HEALTH AND FITNESS. Tennis is the type of participatory
recreational activity intended to be taxed under the retail sales tax
classification.The fact that a
recreational activity may be pursued for health and fitness reasons does not
remove the activity from the retail sales classification. |
| |
4 WTD 281 |
87-348 |
|
RETAIL
SALES TAX -- MEASURE OF TAX"SELLING PRICE " -- COSTS INCLUDED.The taxpayer's purchases which it uses in
providing recreational activities are not purchases for re-sale, but are
non-deductible costs of providing the business activity. |
| |
6 WTD 105 |
88-247 |
|
B&O
TAX -- RETAIL SALES TAX -- GOLFING -- GOLF CART PATH USAGE FEES.Fees collected for the privilege of using
golf cart paths are taxable under the retailing classification of the
business and occupation tax and the retail sales tax, since, under Rule 183,
they are "charges for . . . the use of facilities by persons engaged in
the . . . recreation activit[y]. . ." of golf. |
| |
9 WTD 286-13 |
90-146 |
|
SALES
TAX -- B&O TAX -- AMUSEMENT AND RECREATION ACTIVITIES -- SWIMMING.Lap swimming and open swimming are retail
activities whereas swim team activities are of an instructional nature and,
thus, non-retail subject to Service B&O tax. |
| |
11 WTD 459 |
91-265 |
|
B&O
& RETAIL SALES TAX -- CARD ROOM FEES.An hourly fee that is charged to players for using a "public card
room" is taxable under the Service and Other Business Activities Tax
classification. |
| |
12 WTD 139 |
92-107 |
|
B&O TAX -- BOAT -- CHARTER
OF --DIVERS -- TRANSPORTATION
OF.The transportation of divers via a
charterer-operated boat to a diving site at which the activities of the divers
are controlled by a third-party diving school or group is not a retail sale. |
| |
16 WTD 11 |
94-118 |
|
RECREATION
AND AMUSEMENT ACTIVITIES.Fishing
guide services include the provision of a boat, fishing tackle, poles, and
bait under circumstances where the customers do the fishing.Fishing guide services are amusement
activities. Amusement activities that require active participation by the
customer are retail sales.Therefore,
the provision of fishing guide services as described is a retail sale. |
| |
16 WTD 194 |
96-119 |
|
RETAILING
B&O TAX -- RETAIL SALES TAX -- COIN-OPERATED POOL TABLE.The gross receipts from a coin-operated
pool table (and other pool tables) are subject to the Retailing B&O tax
and retail sales tax. |
| |
17 WTD 133 |
97-146R |
|
HEALTH AND FITNESS CLUBS --
INITIATION FEES -- RETAIL SALES TAX -- RETAILING B&O TAX.Payments by new members to join health and
fitness clubs were not deductible as bona fide initiation fees because the
payments were in exchange for the use of exercise facilities and services. |
| |
17 WTD 133 |
97-146R |
|
HEALTH AND FITNESS CLUBS --
INITIATION FEES --INSTRUCTIONAL LESSONS -- SERVICE B&O TAX.The portions of initiation fees received by
health and fitness clubs that pertain to instructional lessons are subject to
service business and occupation tax. |
| |
17 WTD 202 |
98-060 |
|
RETAIL SALE -- BOAT CHARTERS --
DAY TRIPS FOR SIGHTSEEING PURPOSES.The chartering of boats with a skipper for weddings, funerals, office
meetings or corporate social gatherings does not constitute "day trips for
sightseeing purposes" which would make such trips subject to retailing
B&O and require the charter operator to collect sales tax. |
| |
17 WTD 202 |
98-060 |
|
RETAIL SALE -- BOAT CHARTERS --
AMUSEMENT AND RECREATION SERVICES.The
chartering of boats with a skipper for weddings, funerals, office meetings,
or corporate social gatherings is not an amusement and recreation service. |
| |
18 WTD 70 |
98-167 |
|
B&O TAX SALES TAX USE
TAX RESALE EXEMPTION -- GOLF COURSE DRIVING RANGE GOLF BALLS.A driving range at a golf course is part of
the retail taxable amusement and recreation service of golf.Golf balls purchased by the course for use
at the range are not exempt of sales/use tax because they are not actually
resold to the driving range patron. |
| |
18 WTD 333 |
98-141 |
|
SALES TAX -- KARAOKE.A karaoke business receipts were taxable
under the retailing classification for amusement and recreation services
regardless of the taxpayers designation as room charges or equipment
rentals. |
| |
18 WTD 333 |
98-141 |
|
USE
TAX KARAOKE EQUIPMENT.Use of
Karaoke equipment for karaoke, an amusement or recreation service defined as
a retail sale in RCW 82.04.050(3)(a), is subject to use tax. |
| |
19 WTD 136 |
99-080 |
|
RETAIL SALES WILDLIFE TOURS -
DAY TRIPS FOR SIGHTSEEING PURPOSES.A
boat trip to view wildlife is still a day trip for sightseeing purposes,
despite an optional lecture held off vessel during the week before the tour. |
| |
19 WTD 136 |
99-080 |
|
RETAIL SALES WILDLIFE TOURS -
DAY TRIPS FOR SIGHTSEEING PURPOSES VERSUS EDUCATIONAL ACTIVITIES.To determine whether the paramount purpose
of a trip is educational or sightseeing, a variety of factors must be examined:
Whether instruction is a substantial part of the trip; whether the
sightseeing is incidental to the primary purpose of the trip; whether the
trip is in essence a continuation or enhancement of an existing curriculum;
whether credit or certification is given; whether established places of
interest are visited; and the manner in which the trip is advertised and sold
to the public.Rule 256 exempts
professional organizations from B&O tax on educational seminars. Whether
a tour is closed to the general public is not relevant to whether the trip is
a retail sale. |
| |
19 WTD 136 |
99-080 |
|
RETAIL SALES WILDLIFE TOURS -
DAY TRIPS FOR SIGHTSEEING PURPOSES - MUNICIPAL ENTERPRISE ACTIVITIES: A
municipal program that is subsidized by more than 50% of its costs is not
enterprise activity.Non-enterprise activities
are exempt from B&O tax, but not from retail sales tax. |
| |
19 WTD 172 |
99-174 |
|
B&O
TAX RETAIL SALES TAX ATHLETIC CLUB PERSONAL TRAINER.A personal trainer at an athletic club
evaluates a members physical fitness needs and designs a workout program
intended to meet those needs.His/her
services are physical fitness services, taxable since July 1, 1993 as
retail sales. |
| |
19 WTD 319 |
98-186R |
|
B&O TAX -- EXCLUSIVE DINING
CLUBS -- INITIATION FEES MEMBERSHIP DUES.The deduction under RCW 82.04.4282 for bona fide initiation fees and
dues is available to an entity to the extent it can show the fees and dues
are not in exchange for goods and services it renders.There is no requirement under the statute
or Rule 183 that membership entitle a member to a proprietary interest or a
voice in the operational control of the taxpayer, or that the taxpayer fit a
particular profile. |
| |
19 WTD 319 |
98-186R |
|
B&O AND RETAIL SALES TAX --
TENNIS/FITNESS CLUBS -- INITIATION FEES MEMBERSHIP DUES -- RETAIL SALES
TAX.An exclusive private dining club,
in which membership has value beyond the opportunity to purchase food and
drink, may deduct membership fees and dues that are not in exchange for the
goods and services it renders. |
| |
19 WTD 710 |
00-024 |
|
BARE BOAT CHARTER -- LEASE WITH
OPERATOR -- USE TAX -- INTERVENING USE.If a taxpayer purchases and uses a boat solely for the purpose of
chartering it to consumers under bare boar charters, no retail or use tax is due.Retail or use tax is due when the boat is
chartered with the owner as the operator, because the owner has not
relinquished dominion and control over the vessel.Under such circumstances the owner uses the
boat in operating the business and use tax is due measured by the full
purchase price. |
| |
21 WTD 318 |
02-0039 |
|
RCW 82.04.050(3)(g): SALES TAX
PHYSICAL FITNESS SERVICES -- WEIGHT TRAINING INSTRUCTIONAL.Members who participated in a health clubs
personal strength program primarily to enhance fitness, strength, or improve
their health, paid for physical fitness services.Instructional benefits were secondary. |
| |
21 WTD 318 |
02-0039 |
|
RCW 82.08.0281, RCW 82.04.4289:
SALES TAX -- PRESCRIPTION PHYSICAL FITNESS SERVICES.Charges for exercise prescribed by
physicians were subject to retail sales tax.The prescription drug exemption applies to drugs and substances, not
services. |
| |
22 WTD 253 |
02-0087E |
|
BONA FIDE DUES AND FEES - AIRPORT LOUNGE --TAXPAYER RECORDS -
REQUIREMENT TO DOCUMENT CLAIM FOR DEDUCTION.Exemptions and deductions are narrowly construed.Consequently, taxpayers claiming a
deduction from gross receipts for amounts received as bona fide dues or
fees must keep business records that substantiate the portion attributable
to the privilege of membership in order to claim this deduction. |
| |
23 WTD 28 |
03-0290 |
|
B&O
TAX -- VALUE OF GOODS AND SERVICES PROVIDED.For the purposes of determining the portion of dues that are subject
to the B&O and retail sales taxes, the taxpayer may use either an
allocation of a reasonable charge for the specific goods or services or a
market comparison.ETA 548 states how
a market comparison will be performed for golf courses. |
| |
23 WTD 28 |
03-0290 |
|
B&O
TAX -- VALUE OF GOODS AND SERVICES PROVIDED.When a golf course is owned by property owners of a development and
the property owners pay a monthly fee which is used for maintaining the golf
course and other uses unrelated to the golf course and the golf course is
equally available to the public for a fee, the a reasonable allocation may be
determined by reference to the amounts charged the public and number of
rounds played by the public. |
| |
23 WTD 171 |
98-037 |
|
RETAILING B&O TAX -- RETAIL SALES TAX -- DEDUCTION -- GOLF
AND COUNTRY CLUB -- BONA FIDE INITIATION FEES AND DUES.From total amounts paid by its members, a
country club may deduct the portions allocated for proprietary interests the
members have in the club and the amount of membership fees they paid for the
privilege of belonging to the club.The balance was payment in exchange for a service, the privilege to
play golf, and was subject to retail sales tax and retailing B&O tax. |
| |
23 WTD 223 |
03-0252 |
|
B&O TAX -- HEALTH CLUB INITIATION FEES AND DUES --
DEDUCTIBILITY.No deduction is allowed
for initiation fees or dues unless a taxpayer shows that the revenue is only
received for the privilege of membership. |
| |
24 WTD 265 |
04-0239E |
|
RETAIL SALE PHYSICAL FITNESS SERVICES PILATES.The term sale at retail includes the sale
of physical fitness services.Pilates is a physical fitness
service. |
| |
26 WTD 169 |
06-0280 |
|
RCW 82.04.050: RETAIL SALES TAX
DATING SERVICE.Taxpayer that charges
a fee for bringing together strangers seeking romantic partners is operating
a dating service, and its charges are subject to retail sales tax. |
| |
26 WTD 250 |
07-0113 |
|
RULE
183; RCW 82.04.050; ETA 2023 -- RETAIL SALES TAX -- RETAIL SALE -- PHYSICAL
FITNESS SERVICES - MOVEMENT THERAPY.Because the primary purpose ofmovement therapy is to improve the motion of clients neuromuscular
skeletal systems in order to enhance their general fitness, strength,
flexibility, conditioning, and/or health,its individual instruction is classified as physical fitness under
RCW 82.04.050(3)(g) and taxable as a retail sale. |
| |
30 WTD 1 |
09-0311 |
03/30/11 |
RULE 183; RCW 82.04.050(3): RETAIL SALES – AMUSEMENT AND RECREATION SERVICES – CHARGES MADE FOR PROVIDING THE OPPORTUNITY TO DANCE. When a nightclub provides a dance floor along with music, it is clearly providing patrons with “the opportunity to dance.” Therefore, the cover charge for admission is subject to retail sales tax and retailing B&O tax. |
| |
30 WTD 15 |
06-0048R |
10/12/11 |
Rule 183(2)(b), (m); RCW 82.04.050(3)(a): RETAIL TAXABLE AMUSE-MENT AND RECREATION ACTIVITIES -- INFLATABLES. Sales of activities, such as inflatable bouncy houses, mechanical bull rides, trampolines, speed pitch, pool, and air hockey, and similar activities that are participatory in nature are retail-taxable, unless access to those activities is purchased at a central ticket location in a manner similar to a carnival. |
| |
30 WTD 70 |
10-0231 |
11/30/2011 |
RCW 82.08.190; 82.08.195: STREAMLINED SALES AND USE TAX
AGREEMENT – BUNDLED TRANSACTIONS – RETAIL SALES TAX. For periods after July 1, 2008, a seller of sports program materials along with support services provides them in a “bundled transaction” under RCW 82.08.190(1)(a) when the products are “distinct and Identifiable” and “sold for one nonitemized price.” As a bundled transaction, selling tangible personal property along with related services is subject to retail sales tax under RCW 82.08.195(1). |
| |
30 WTD 70 |
10-0231 |
11/30/2011 |
RCW 82.04.050(1)(a); 82.12.010(6)(a): RETAIL SALES TAX – SALES FOR
RESALE – INTERVENING USE. Retail sales made to event organizers are not sales for resale when the event organizers use or consume the materials in putting on youth sports leagues, even though some of the items are resold to the league participants.
|
| |
30 WTD 70 |
10-0231 |
11/30/2011 |
RCW 82.04.4271: BUSINESS AND OCCUPATION TAX – EXEMPTION FOR
NONPROFIT YOUTH ORGANIZATIONS. A nonprofit corporation is not entitled to the B&O tax exemption in RCW 82.04.4271 when the third parties it sells to, not the nonprofit corporation, provide the camping and recreational services on property exempt from property tax under RCW 84.36.030(2), and the league participates do not become members of the nonprofit corporation. |
| |
31 WTD 90 |
11-0313 |
11/07/2012 |
RULE 183; RCW 82.04.050; RCW 82.08.020: RETAIL SALES TAX – AMUSEMENT AND RECREATION SERVICES - PURCHASE OF BAIT - NOT A PURCHASE FOR RESALE. The purchase of bait by a charter fishing boat business is subject to retail sales tax even though the business charges its customers retail sales tax on a flat fee for the fishing excursion, the use of fishing gear, and the provision of bait. The purchase of the bait by the business is not a purchase for resale in the regular course of business without intervening use. |
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