EDISON, NJ -- The New Jersey health club tax that went into effect on Oct. 1 is facing opposition from a nonprofit group and revisions by state legislators.
The law requires for-profit health clubs and tax-exempt organizations to collect and remit a 7 percent sales tax on initiation and membership fees. The sales tax, which is part of a multi-faceted approach to solving New Jersey’s budget problems, does not apply to guest fees or to clubs with the majority of their members under the age of 18.
In early November, the New Jersey YMCA Alliance, which represents 44 YMCA branches, filed a lawsuit seeking an immediate injunction prohibiting the New Jersey State Division of Taxation from assessing the sales tax on YMCA membership fees. State legislators also have gotten involved by proposing new legislation excluding tax-exempt organizations such as Jewish Community Centers and YMCAs from being subject to the tax.
How do you feel about the New Jersey health club tax? E-mail Amy Fischbach at [email protected] with your comments.