In general, charges for the use of an “athletic or fitness facility” (AFF) are subject to retail sales tax and Retailing business and occupation (B&O) tax. An AFF is defined as:

“An indoor or outdoor facility or portion of a facility that is primarily used for: exercise classes; strength and conditioning programs; personal training services; tennis; racquetball; handball; squash; or pickle ball; or other activities requiring the use of exercise or strength training equipment, such as treadmills, elliptical machines, stair climbers, stationary cycles, rowing machines, Pilates equipment, balls, climbing ropes, jump ropes and weightlifting equipment.”

An entire facility is an AFF if it is primarily (more than 50%) used for AFF activities.

If an entire facility is not considered an AFF, then you must determine whether any portion of the facility is an AFF. Typically, this test must be performed whenever there is a significant change in activities that could cause a portion of a facility to become an AFF.

What types of facilities are included in the definition?

Facilities that meet the definition of an AFF come in many shapes and sizes. Some common terms for these facilities include, but are not limited to:

• Fitness centers.
• Workout clubs.
• Cross-fit centers.
• Facilities that offer Les Mills programs such as:
  • Body Pump.
  • Body Step.
  • Body Flow.
  • Attack.
• Pilates facilities.
• Tennis centers.
• Pickleball facilities.

Are there fitness facilities not included in the definition of retail sales?

Certain organizations that provide access to an AFF are not considered to be making retail sales. Instead, charges for these facilities are subject to B&O tax under the Service and Other Activities classification. They are:

• Educational institutions that provide access to an AFF to their staff and students.
  • Note: Charges to alumni or other members of the public are considered a retail sale.
• Facilities that exclusively provide:
  • Yoga, tai chi or chi gong classes.
  • Martial arts classes, training, or events.

Other organizations that provide access to an AFF that are not considered to be making a retail sale but are exempt from B&O tax include:

• Rent or association fees charged by a landlord or residential association that provides access to an AFF – unless the rent or charges vary depending on whether the tenant or owner has access to the facility.
• AFFs provided by an employer to its employees or family members but only when the employer does not charge for their use.

Are any uses of an AFF not considered retail sales?

Yes, in some circumstances, the charge for using an AFF, or portion of an AFF, is not considered a retail sale. Examples include separately stated charges for:

• The use of an AFF primarily for a purpose other than engaging or receiving instruction in a physical fitness activity. For example, if a couple wants to get married at an AFF, the charge for the use of the facility would not be a retail sale.
• The use of a discrete portion of an AFF, other than a pool, that does not by itself meet the definition of an AFF. For example, a beauty spa that is inside of an AFF is considered a discrete portion not meeting the definition of an AFF.
• Services such as advertising, massage, or nutritional consulting that do not require the customer to engage in physical fitness activities to receive the service.
  • Note: This does not include personal training services or instruction in a physical fitness activity.
• Physical therapy provided by a physical therapist when performed pursuant to a referral from an authorized health care practitioner.

What about lessons offered at an AFF?

All instructional lessons provided at an AFF, including swimming lessons, are considered retail sales. There are no exceptions to this provision in the law.

What about league play offered at an AFF?

League play, such as tennis, basketball or other adult or children league play offered by an AFF is a retail sale because it occurs at an AFF. 

This section of the guide is intended to provide guidance on the taxability of fitness and recreational activities that occur at facilities operated by municipal corporations such as a city, county, town, or other local government entity. These facilities are often referred to as community centers.

The taxability of a community center facility is largely based on whether:

• The entire facility is an AFF – all charges are subject to retail sales tax.
• A portion of the facility is an AFF – charges for the area of the facility that is an AFF are subject to retail sales tax.
• No portion of the facility is an AFF – charges are not subject to retail sales tax.

The entire facility is an AFF

An entire community center facility is an AFF if it is primarily (more than 50%) used for AFF activities.

The department will presume that the entire facility is an AFF when more than 50% of the revenues received by the facility are from activities listed in the definition of an AFF. Typically, this would occur when a facility contains a substantial fitness center and/or racquet center.

Only revenues from customers/users of the facility are used to determine if the facility is primarily an AFF. Other funding sources, such as tax revenues and grants that are used to subsidize the cost of operating the facility, are not used in the determination.

A portion of the facility is an AFF

If an entire facility is not considered an AFF, then you must determine whether any portion of the facility is an AFF. Typically, this test must be performed whenever there is a significant change in activities that could cause a portion of a facility to become an AFF. To determine if any portion of the facility is an AFF, answer the following questions:

1. Is there a separate area (e.g., a room) that is primarily used for any of the AFF activities listed in the definition of an AFF?
   • If yes, then go to Question 2.
   •  If no, then the facility (or portion of the facility) is not considered an AFF.
2. Is there a separate charge for using this (room) area?
   • If yes, then the separate area is considered an AFF, and any charges to use the area are subject to retail sales tax.
   • If no, then the portion of the facility is not an AFF.

The department makes the following presumptions in determining if a room/area is an AFF:

1. In buildings, we will look at the entire room or area to determine if it should be considered an AFF; we will not split up rooms.
   
   Example: City A has a neighborhood community center that is not an AFF as a whole. One room in the community center has a couple of stationary bicycles in a corner. There is no charge for the use of the stationary bikes. The remainder of the room has no exercise equipment and is primarily used for dance classes and meetings. The department will not view this room as an AFF.
2. For outdoor areas, we will look at the primary activity performed to determine if the area qualifies as an AFF.
   
   Example: City X has a community center with an outdoor tennis court, an outdoor basketball court, and a softball field that are side by side. The use of any of the outdoor areas requires payment of a fee. In this situation, each court/field is a distinct area, and the determination is made separately. The tennis court is an AFF, while the softball field and the basketball court are not AFFs.
3. The department presumes the following rooms within a facility are not AFFs when the facility as a whole is not an AFF:
   • Gymnasiums.
   • Multi-purpose rooms.
   • Classrooms.
   • Meeting rooms.
   • Pools.
   • Outdoor basketball courts.
   • Outdoor ball fields (soccer, football, baseball, etc.).
   • The local government is not required to retain records showing that these rooms are used 50% or less in AFF activities.
4. The schedule of room use for a charge will determine whether a room or area it is primarily used as an AFF. Idle or unscheduled time will not be part of the calculation.

Application of sales tax when a portion of a facility is an AFF

When a room or area at a facility is determined to be an AFF, then any charges to engage in or receive instruction in physical fitness activities in that room or area are retail sales. See below for information on uses of such spaces that are excluded from retail sales when separately stated.

“Physical fitness activities” means activities that involve physical exertion for the purpose of improving or maintaining the general fitness, strength, flexibility, conditioning, or health of the participant.

Examples of physical fitness activities include, but are not limited to:

• Exercise classes.
• Strength and conditioning programs.
• Personal training services.

No Portion of the facility is an AFF

When no portion of the facility is an AFF:

• Charges by the facility to participate in retail recreational services are subject to retail sales tax, and Retailing business and occupation (B&O) tax.
• Charges to participate in non-retail recreational services are subject to B&O tax under the Service and Other Activities classification. This includes charges for activities that would otherwise be considered physical fitness activities.

Exclusions from retail sales

Separately stated charges for the following activities that take place within an AFF or a portion of the facility that is an AFF are subject to B&O tax under the Service and Other Activities classification and are not retail sales:

• Use of an AFF for a purpose other than engaging or receiving instruction in a physical fitness activity. For example, a couple holds their wedding at the facility.
• Use of a discrete portion of an AFF, other than a pool, that does not by itself meet the definition of an athletic or fitness facility. Examples include kitchens, auditoriums, theaters, meeting areas, etc.
• Use of an AFF for advertising, massage, or nutritional consulting that does not require the customer to engage in physical fitness activities to receive the service.
  • Note: This does not include personal training services or instruction in a physical fitness activity.
• Physical therapy provided by a licensed physical therapist when prescribed by an authorized health care practitioner.
• Cover charges for dances. For example, a middle school holds a dance where there is a charge to attend.

Exemption from retail sales tax (physical fitness classes)

In general, charges by local governments to customers for the use of an AFF are retail sales subject to retail sales tax. However, charges for physical fitness classes provided by local governments are exempt from retail sales tax.

Characteristics of a physical fitness class include:

• Group exercise (not one-on-one).
• Group instructor or leader provided.
• Set days and times.
• Limited number of participants.
• Registration is in advance or before beginning class.

Examples of activities that are not exempt physical fitness classes include, but are not limited to:

• General use of pool (open swim).
• Athletic competitions.
• Drop-in basketball or volleyball.
• League fees.
• Use of exercise and strength training equipment.
• Personal training services.
• General use of gymnasium.
• Use of running track.

Retail sales tax applies to the non-exempt physical fitness activities listed above when provided at an athletic or fitness facility.

Classes that are not related to physical fitness are not considered retail sales. Such classes are subject to B&O tax under the Service and Other Activities classification. Examples include, but are not limited to:

• Art classes
• Dog obedience classes

Rental of rooms and facilities to third-party contractors

When a facility or a portion of a facility is an AFF, municipalities must collect retail sales tax from third-party contractors who rent the AFF to provide physical fitness activities to their clients.

The following examples assume that the entire facility is considered an AFF, and a separate charge is imposed for the rental of the area used for the activity.

• Example 1: A rock-climbing instructor not employed by the municipality reserves two hours each week on the facility’s climbing wall to teach a class on climbing techniques. The municipality must collect retail sales tax from the instructor because the class is considered a physical fitness activity.
• Example 2: An art instructor rents a room at a community center to hold an art class. The municipality does not have to collect sales tax from the instructor because the rental of the room is for a purpose other than engaging in or receiving instruction in a physical fitness activity.
• Example 3: A volleyball instructor rents the gymnasium at a community center for a volleyball class. The municipality must collect retail sales tax from the instructor because the class is considered a physical fitness activity.

When a third party rents a room that is not an AFF, the community center does not have to collect sales tax. In this case, the income received by the community center is subject to B&O tax under the Service and Other Activities classification.

The following examples assume that the room or facility rented is not an AFF and a separate charge is imposed for rental of the area used for the activity.

• Example 4: A rock-climbing instructor reserves two hours each week on the community center’s climbing wall to teach a class on climbing techniques. The municipality does not have to collect retail sales tax from the instructor because the facility is not an AFF.
  • Note: In this case the instructor must collect retail sales tax from their students because the instructor is providing a retail recreational service.
• Example 5: A dance instructor rents the gymnasium at a community center for a ballroom dance class. The community center does not have to collect retail sales tax from the instructor because the gymnasium is not an AFF.

Certain nonprofit youth organizations are exempt from business and occupation (B&O) tax and do not have to collect sales tax on membership fees or dues for recreational services provided to their members.

To qualify for these exemptions, the nonprofit youth organization must be both:

• A nonprofit organization engaged in the character building of youth (“character building” is defined as “activities for children under eighteen years of age that are for the general public's good. The activities may build, improve, or enhance a child's moral constitution by developing moral or ethical strength, leadership, integrity, self-discipline, fortitude, self-esteem, and reputation).
• An organization that is exempt or eligible to be exempt from property tax under RCW 84.36.030.

If the nonprofit youth organization does not meet the eligibility requirements, the income is taxable.

Sports complexes encompass a wide range of athletics. These facilities provide areas to play, compete, train, practice, receive coaching, and other activities that support the athlete.

The following sports are frequently found at a sports complex:

• Baseball/softball.
• Soccer.
• Hockey.
• Basketball.
• Volleyball.
• Gymnastics.
• Martial arts.

These sports and activities are not within the definition of an athletic or fitness facility (AFF). Therefore, most sports complexes are not generally considered an AFF as a whole. Other sports defined as AFF activities or recreational activities, are discussed elsewhere in this guide.

The following information is intended to provide guidance on the taxability of activities that occur at sports complexes.

Sports complexes – general taxability

The taxability of a sports complex is largely based on whether:

• The entire sports complex is an AFF – all charges are subject to retail sales tax.
• A portion of the sports complex is an AFF – charges for the area of the sports complex that is an AFF are subject to retail sales tax.
• No portion of the sports complex is an AFF – charges are not subject to retail sales tax, unless they are retail recreational services.

Entire sports complex is an AFF

An entire sports complex is an AFF if it is primarily (more than 50%) used for AFF activities.

The department will presume that the entire facility is an AFF when more than 50% of the revenues received by the facility are from activities listed in the definition for an AFF. Typically, this would occur when a facility contains a substantial fitness center and/or racquet center.

When the entire sports complex is an AFF, all charges for activities listed within the definition for an AFF and physical fitness activities are subject to sales tax.

Note: A sports complex is not considered an AFF based on the availability of a ball used to participate in sports, such as soccer, baseball, softball, volleyball, football, or basketball.

A portion of the sports complex is an AFF

If an entire sports complex is not considered an AFF, then you must determine whether any portion of the facility is an AFF. Typically, this test must be performed whenever there is a significant change in activities that could cause a portion of a facility to become an AFF.

To determine if any portion of the facility is an AFF, answer the following questions:

1. Is there a separate area or room that is primarily used for activities included in the definition of an AFF?

• If yes, then go to Question 2.
• If no, then the facility or portion of the facility is not considered an AFF.

2. Is there a separate charge for using the room or area?

• If yes, then the separate area is considered an AFF, and any charges to use the area are subject to retail sales tax.
• If no, then the separate area is not an AFF.

The department makes the following presumptions in determining if a room/area is an AFF:

1. In buildings, we will look at the entire room or area to determine if it should be considered an AFF, and we will not split up rooms.

Example 1: Galaxy Martial Arts is not an AFF as a whole. One room in the facility has a few free weights in a corner. There is no charge for the use of the free weights. The remainder of the room has no exercise equipment and is primarily used for martial arts lessons and training. The department will not view this room as an AFF when there is no separate charge for using the exercise equipment.

Example 2: Super Gymnastics House is not an AFF as a whole. It has a multipurpose room that is used as a break/lunchroom for staff during the week and for birthday parties on weekends. Super Gymnastics House charges a flat $150 fee to hold birthday parties for up to 15 kids. Super Gymnastics House provides the following for the fee:

• Use of the tumbling mats, ball pit, a low-level balance beam, and some group activities on the tumbling mats.
• Use of the multipurpose room for the party room for birthday cake, games, and presents, provided by the customer.

The multipurpose room is not an AFF. The activities that take place in the room are not AFF activities. Although the activities taking place at the sports complex may be physical fitness activities, they do not occur at an AFF. Thus, the birthday party is subject to B&O tax under the Service and Other Activities classification. Retail sales tax does not apply.

For outdoor areas, the department will look at the primary activity performed to determine if the area qualifies as an AFF.

Example 3: Super Soccer Sports has multiple soccer fields, an outdoor pickleball court, and an outdoor basketball court. The use of any of the outdoor areas requires payment of a fee. In this situation, each court/field is a distinct area, and the determination is made separately. The pickleball court is an AFF because it is within the definition of an AFF, while the basketball court and soccer fields are not.

2. The department presumes the following rooms within a sports complex are not AFFs when the sports complex as a whole is not an AFF:

• Gymnasiums.
• Multi-purpose rooms.
• Practice areas.
• Meeting rooms.
• Pools.
• Outdoor basketball courts.
• Outdoor ball fields (soccer, football, baseball, etc.).

The sports complex is not required to retain records showing that these rooms are used 50% or less in AFF activities.

3. To determine if a room or area is primarily used as an AFF, the schedule of room use for a charge will determine whether a room or area is primarily used as an AFF. Idle or unscheduled time will not be part of the calculation.

Application of sales tax when a portion of a sports complex is an AFF

When a room or area at a facility is determined to be an AFF then any charges to engage in or receive instruction in physical fitness activities in that room or area are retail sales. See below for information on uses of such spaces that are excluded from retail sales when separately stated.

“Physical fitness activities” means activities that involve physical exertion for the purpose of improving or maintaining the general fitness, strength, flexibility, conditioning, or health of the participant. Examples of physical fitness activities include, but are not limited to:

• Exercise classes.
• Strength and conditioning programs.
• Personal training services.

No Portion of the sports complex is an AFF

When no portion of the facility is an AFF:

• Charges by the sports complex for retail recreational services are subject to retail sales tax, and the income from such charges is subject to business and occupation (B&O) tax under the Retailing classification.
• Income received by the sports complex for non-retail recreational services is subject to B&O tax under the Service and Other Activities classification and retail sales tax does not apply. This includes charges for activities that would otherwise be considered physical fitness activities.

Exclusions from retail sales

Separately stated charges for the following activities that take place within an AFF or a portion of the facility that is an AFF are subject to B&O tax under the Service and Other Activities classification and are not retail sales:

• Use of an AFF for advertising, massage, or nutritional consulting that does not require the customer to engage in physical fitness activities to receive the service.
  • Note: This does not include personal training services or instruction in a physical fitness activity.
• Physical therapy provided by a licensed physical therapist when prescribed by an authorized health care practitioner.

Rental of rooms and facilities to third-party contractors

When a sports complex or a portion of a sports complex is an AFF, they must collect retail sales tax from a third-party contractor who rents the room or portion of the facility to provide physical fitness activities to their clients.

The following examples assume that the entire sports complex is an AFF.

• Example 1: A tennis coach not employed by the sports complex reserves three hours each day on the tennis courts for practice. The sports complex is required to collect retail sales tax from the coach because tennis is a physical fitness activity and is taking place at an AFF.
• Example 2: A pitching coach not employed by the sports complex reserves two hours each week at the facility to teach students about pitching. The sports complex is required to collect retail sales tax from the coach because pitching is considered a physical fitness activity and is taking place at an AFF.

When a third-party rents a room or facility that is not an AFF, the sports complex does not have to collect sales tax unless it is providing a retail recreational service.

The following examples assume that the room or facility rented is not an AFF and a separate charge is imposed for rental of the area used for the activity:

• Example 3: A pitching coach not employed by the sports complex reserves two hours each week at the facility to teach students about pitching. The sports complex is not required to collect retail sales tax from the coach, even though the class is considered a physical fitness activity, since the part of the facility used is not an AFF.
• Example 4: A volleyball coach rents a volleyball court from a sports complex for team practice. The sports complex is not required to collect retail sales tax from the coach because volleyball is not a retail recreation service and the court is not an AFF.
• Example 5: A wrestling coach reserves two hours each week on the sports complex’s climbing wall for wrestlers to work on strength. The sports complex’s climbing wall is not an AFF. However, climbing walls are considered a retail recreation service. Therefore, the sports complex must collect retail sales tax from the wrestling coach.

Recreational services fall into two general categories:

• Retail recreational services.
• Other (nonretail) recreational services.

Retail recreational services

Retail recreational services include activities that are either:

• Specifically defined as retail sales by statute.
• Included in the definition of an athletic or fitness facility (AFF) and occur at an AFF.

Income from providing recreational services specifically defined as retail sales is subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax. This is true no matter where the activity occurs.

However, income from recreational services that are merely included in the definition of an athletic or fitness facility is only subject to sales tax when the activity occurs at an AFF.

Other (nonretail) recreational services

Income from providing nonretail recreational services is generally subject to B&O tax under the Service and Other Activities classification. This includes activities that are any of the following:

• Not specifically defined as retail sales.
• Specifically excluded from the definition of retail sales.
• Included in the definition of AFFs, but do not occur at an AFF.

For more information about specific recreational services, please see other sections of this guide.

If you do not see your activity listed, or it is listed but you are still unsure, email us at Rulings@dor.wa.gov with a detailed explanation of the activities your business provides. We will respond to you with a written ruling explaining how your activities are taxable.

Charges for the following activities, including lessons, are generally subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax:

• Ballooning.
• Hang gliding.
• Indoor or outdoor sky diving.
• Paragliding, parasailing, and similar activities.

Exemption

Skydiving or ballooning activities that take place in federal airways are exempt from retail sales tax and B&O tax. You can use tools such as http://vfrmap.com/ to determine if any of your business activities take place in a federal airway.

Charges for admission or access to an amusement park, theme park, or water park facility are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax. Charges for lockers, cabanas, or similar rentals at such facilities are also retail sales.

Note: The definition of amusement park, theme park, and water park does not include fairs, carnivals, and festivals which are events that do not exceed twenty-one days and in which a majority of the amusement rides, if any, are not affixed to real property.

Non-retail sales

Income received for the following is subject to B&O tax under the Service and Other Activities classification:

• Discrete charges for rides, other attractions, or entertainment that are in addition to the charge for admission to the amusement park, theme park, or water park facility.
• Charges for admission or access to a park or zoo for which the primary purpose is the exhibition of wildlife.
• Charges for admission to fairs, carnivals, and festivals.

Charges for participating in any of the following are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax:

• Air hockey.
• Billiards.
• Pool.
• Foosball.
• Darts.
• Shuffleboard.
• Ping pong.
• Axe throwing.

Charges for the using batting cages are subject to subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax. This includes charges for lessons that take place within the batting cages.

Charges for the following are subject to subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax:

• Access to bowling.
• Bowling lessons.
• Amounts paid by competitive event participants to bowling alley operators.
• Amounts paid by competitive bowling event organizers to bowling alley operators, if such amounts vary based on the number of event participants.
• Rentals of shoes, balls, or other bowling equipment.

Non-retail sales

Amounts charged by competitive event organizers other than a bowling alley operator to participate in events are subject to B&O tax under the Service and Other Activities classification. The independent event organizer does not have to collect sales tax from the participants.

Charges for the following activities, including lessons, are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax:

• Bungee jumping.
• Zip lining.
• Riding inside a ball, whether the ball is inflatable or otherwise.

Charges for the following are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax:

• Amounts paid to climb/use an indoor or outdoor artificial climbing structure.
• Lessons provided on artificial climbing structures.
• Rentals of climbing gear.

Charges for day trips (less than 24 hours) for sightseeing purposes are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax. Examples include:

• Wine tours.
• Scenic tours.
• Culinary tours.
• Educational tours.
• Nature-related tours.
• Cultural tours.

However, charges for multi-day sightseeing trips are not considered retail sales.

Note: If an activity is otherwise identified as a retail sale (e.g., river rafting), the charge for that activity is a retail sale regardless of the number of days over which that activity is provided.

Charges for the following are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax:

• Amounts charged to engage in fishing.
• Guided fishing.
• Charter fishing.
• Access to private fishing areas.
• Fishing lessons.

Non-retail sales

Charges for the following are subject to B&O tax under the Service and Other Activities classification:

• Participation in fishing contests.
• Fishing licenses/fees imposed by a government entity.

The following are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax:

• Amounts charged to play golf, or any variant in which either a golf club or golf ball is used, such as miniature golf.
• Golf driving range.
• Golf simulators.
• Golf cart rentals.
• Golf cart fees.
• Amounts paid by participants of competitive golf events to the golf facility operator.
• Amounts paid by the organizer of competitive golf events to the golf facility operator, if such amounts vary based on the number of event participants.

Non-retail sales

The following are subject to B&O tax under the Service and Other Activities classification:

• Charges for golf lessons that are stated separately from the green fees/golf facility charges.
• Fees charged to participate in or conduct competitive golf events or tournaments.

Generally, amounts charged to the public for horseback riding, including guided rides, where the seller furnishes the horse to the buyer are subject to business and occupation (B&O) tax under the Retailing classification and the seller must collect retail sales tax.

Non-retail sales

The amounts received for the following are subject to B&O tax under the Service and Other Activities classification:

• Horseback riding, where the primary focus is on providing instruction.
• Therapeutic horseback riding provided by an instructor certified by a nonprofit organization that offers national or international certification for therapeutic riding instructors.
• Charges for riding horses where the rider has little to no control over the horse, such as a children’s pony ride.

Charges for the following are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax:

• Guided hunting.
• Hunting at game farms and shooting preserves.
• Hunting lessons.

Non-retail sales

The amounts received for the following are subject to B&O tax under the Service and Other Activities classification:

• Hunting contests.
• Hunting license fees imposed by a government entity.

Charges for the following activities, including lessons, are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax:

• Go-karting.
• Bumper cars.
• Snowmobiles.
• All-terrain vehicles.
• Rentals of helmets or other gear.

Note: If the seller provides the vehicle, but not the premises to operate it, it is considered a rental and is still taxable as a retail sale.

Amounts charged for paintball and airsoft activities, including lessons, are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect retail sales tax.

Generally, charges for personal training (e.g. exercise training, conditioning training, strength training, fitness training, sports training, etc.) conducted at an athletic or fitness facility (AFF) are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax.

Non-retail sales

The amounts received for the following are subject to B&O tax under the Service and Other Activities classification:

• Charges to provide personal training at any location other than an AFF operated by the personal trainer.
• Separately stated charges for nutritional consulting or body composition testing.

Note: Personal trainers who provide their services at an AFF operated by another party must pay retail sales tax to the AFF on the charges for the use of the AFF.

Amounts charged for indoor or outdoor playground activities are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax. Examples include, but are not limited to:

• Inflatable bounce structures or other inflatables.
• Mazes.
• Trampolines.
• Slides.
• Ball pits.
• Laser tag, soft-dart tag, or other games of tag.
• Human gyroscope rides.

Note: These activities are retail sales, regardless of whether such activities occur at the seller's place of business.

Non-retail sales

Playground activities provided for children by a licensed child day care center or licensed family day care provider, as those terms are defined in RCW 43.216.010.

Separately stated charges to members, and amounts charged to non-members to engage in the following activities are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax:

• Target shooting.
• Skeet.
• Trap.
• Sporting clays.
• “5” stand.
• Archery.

Note: Businesses providing targets for shooting are the consumers of targets, whether the business separately itemizes a charge for the targets or not. Therefore, businesses providing targets for shooting must pay sales or use tax on the targets.

Non-retail sales

The following are subject to B&O tax under the Service and Other Activities classification:

• Fees to enter competitive shooting events.
• Shooting instruction that is entirely or predominantly (more than 50%) classroom-based.
• Membership fees at shooting clubs, shooting ranges, and other shooting facilities.

Generally, amounts charged to members of the public for skating, such as ice skating, roller skating, and inline skating are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax.

Non-retail sales

Income from the following is subject to B&O tax under the Service and Other Activities classification:

• Skating lessons.
• Skating team activities.
• Competitive skating events.
• Hockey league fees.
• Fees to join or renew a membership at a skating facility, club, or other skating organization.

Discrete charges to the public for the use of land or facilities to engage in nonmotorized snow sports activities are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax.

This is true whether outdoors or in an indoor facility with or without snow and includes fees, however labeled, for the use of ski lifts and tows and daily or seasonal passes for access to trails or other areas where nonmotorized snow sports are conducted.

Examples of snow sports and activities include:

• Downhill skiing.
• Cross-country skiing.
• Snowboarding.
• Ski jumping.
• Sledding.
• Snow tubing.
• Snowshoeing.
• Gear rentals.

Non-retail sales

Charges for the following are subject to B&O tax under the Service and Other Activities classification:

• Instructional lessons in nonmotorized snow sports and activities.
• Permits issued by a government entity to park vehicles on or to access public lands.
• Permits or leases granted by an owner of private timberland for recreational access to areas used primarily for growing and harvesting timber.
• Fees to access land or ski lift fees outside of the snow sports season.

All charges to members of the public for recreational or fitness swimming are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax. Examples include:

• Open swim.
• Lap swimming.
• Special pool events like "kids/parent night out."
• Pool parties during open swim time.
• Pool parties for private events such as birthdays, family gatherings, and employee outings.
• Swimming lessons provided at an athletic or fitness facility (AFF).

Non-retail sales

Charges for the following are subject to B&O tax under the Service and Other Activities classification:

• Swimming lessons not provided at an AFF.
• Fees charged to participate in swim meets and other swim competitions.
• Fees charged to join a swim team, swim club, or aquatic facility.

Generally, charges to participate in tennis, racquetball, handball, squash, and pickleball provided by an operator of an athletic or fitness facility (AFF) are subject to business and occupation (B&O) tax under the Retailing classification, and the AFF must collect sales tax.

Non-retail sales

Amounts charged to participate in tennis, racquetball, handball, squash, and pickleball, where the activity is not provided by the operator of an AFF, are subject to B&O tax under the Service and Other Activities classification.

Note: Tennis, racquetball, handball, squash, and pickleball, are defined as activities of an AFF. The department will presume that these facilities are primarily used for AFF-related activities. It is up to the business to show otherwise.

Generally, charges for participating in water sports and activities are subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax. Examples of water sports and activities, and related retail sales include:

• Scuba diving.
• Snorkeling.
• River rafting.
• Kayaking.
• Canoeing.
• Longboarding.
• Surfing.
• Kiteboarding.
• Flyboarding.
• Water slides.
• Inflatable water pillows.
• Water trampolines.
• Water rollers.
• Equipment rentals.

Note: Lessons for these activities are generally considered retail sales. See exception below.

Non-retail sales

The following are subject to B&O tax under the Service and Other Activities classification:

• Charges made by a vocational school for commercial diver training that is licensed by the workforce training and education coordinating board under chapter 28C.10 RCW.
• Fees charged to participate in sailing (excluding day trips for sightseeing) and recreational and competitive rowing activities using a racing shell or scull where the oars are held in place by oarlocks, often in a team sport or competitive nature (e.g., crew).
• Membership dues and classes provided by a sailing or rowing organization.

Generally, charges for dance classes, competitions, or the opportunity to dance are subject to business and occupation (B&O) tax under the Service and Other Activities classification. Retail sales tax does not apply.

Retail sales

Dance classes, competitions, or the opportunity to dance provided by the operator of an athletic or fitness facility (AFF) are subject to B&O tax under the Retailing classification, and the AFF must collect sales tax.

Sales of tangible personal property such, as t-shirts, water bottles, leotards, and equipment, are also subject to B&O tax under the Retailing classification and retail sales tax.

Generally, charges for day camps offered by a nonprofit organization or state or local government entity that provide youth not older than 18, or that are focused on providing individuals with disabilities or mental illness, the opportunity to participate in a variety of supervised activities are subject to business and occupation (B&O) tax under the Service and Other Activities classification. Retail sales tax does not apply.

Retail sales

Sales of tangible personal property, such as t-shirts and water bottles, are subject to B&O tax under the Retailing classification and retail sales tax.

Generally, the amount charged to participate in gymnastics at a gymnastics academy or facility are subject to business and occupation (B&O) tax under the Service and Other Activities classification. Retail sales tax does not apply.

Retail sales

Amounts charged by an operator of an athletic or fitness facility (AFF) to participate in gymnastics are subject to B&O tax under the Retailing classification, and the AFF must collect sales tax.

Sales of tangible personal property such as t-shirts, water bottles, leotards, and equipment are also subject to Retailing B&O and retail sales tax.

Amounts charged to participate in running events (e.g. marathons, half-marathons, 5K, etc.), triathlons, and bicycling events are subject to business and occupation (B&O) tax under the Service and Other Activities classification. Retail sales tax does not apply.

Retail sales

Sales of T-shirts, water bottles, and other tangible personal property are subject to B&O tax under the Retailing classification, and retail sales tax applies.

Generally, fees charged to participate in a soccer, baseball, basketball, football, volleyball, hockey, softball team, or other league play are subject to business and occupation (B&O) tax under the Service and Other Activities classification. Retail sales tax does not apply.

Retail sales

Amounts charged by an operator of an athletic or fitness facility (AFF) to participate in soccer, baseball, basketball, football, volleyball, hockey, softball, or other league play are subject to B&O tax under the Retailing classification, and the AFF must collect sales tax.

Sales of T-shirts, water bottles, and other tangible personal property are also subject to Retailing B&O and retail sales tax.

Generally, the amounts charged to rent soccer fields, baseball fields, hockey rinks, basketball courts, volleyball courts, and football fields are subject to business and occupation (B&O) tax under the Service and Other Activities classification. Retail sales tax does not apply. Facilities rented by sports complexes are not generally considered AFF facilities.

Retail sales

Amounts charged by an operator of an athletic or fitness facility (AFF) to use such facilities are subject to retail sales tax, and the income received is subject to B&O tax under the Retailing classification.

Generally, charges for the following are subject to business and occupation (B&O) tax under the Service and Other Activities classification:

• Playing arcade-style video games.
• Providing and operating a truck or trailer fitted out as a video arcade where the customer and their guests enter to play video games.

Retail sales tax does not apply.

Retail sales Charges for playing online video games are subject to B&O tax under the Retailing classification, and the seller must collect sales tax. Sales of T-shirts, water bottles, and other tangible personal property are also subject to Retailing B&O and retail sales tax.

Generally, the amounts charged to participate in yoga, tai chi, chi gong, and martial arts are subject to business and occupation (B&O) tax under the Service and Other Activities classification. Retail sales tax does not apply.

Retail sales

Amounts charged by an operator of an athletic or fitness facility (AFF) to participate in yoga, tai chi, chi gong, or martial arts are subject to business and occupation (B&O) tax under the Retailing classification, and the AFF must collect sales tax.

Everyone who uses personal property in a business must complete a personal property tax listing form. This listing must be filed with your county assessor’s office by April 30 of each year.

Examples of personal property used in conducting business include, but are not limited to:

• Exercise machinery and equipment.
• Computer hardware and software.
• Furniture and fixtures.
• Supplies.

For more information, please see our Personal Property Tax brochure and our How my business property is valued web page.

Assets, consumables, and supplies

Recreational service providers must pay retail sales or use tax on their purchases of goods and retail services used in providing their services.

Examples include:

• Exercise equipment.
• Point of sale systems.
• Office furniture and equipment.
• Cleaning supplies.

If the seller does not collect sales tax, you should report use tax.

Purchases for resale

Recreational service providers may use a reseller permit to purchase merchandise that will be sold to their customers without intervening use by the service provider.