Yoga Tax-Ruling Released: Levy Will Now Be Assessed Only on Those Primarily Seeking Buns of Steel
OK, not exactly. But that's sort of it.
As I wrote a
couple weeks ago, the DOR has been grappling with where yoga falls in
our state law's somewhat bizarre distinction between "physical fitness
classes" and "instruction." The former are considered retail sales, whereas the latter are not. For a while it looked like the DOR was moving to make yoga studios charge its customers sales tax, arguing that the studios were indeed in the physical fitness business. But a concerted re-education program on the part of yoga-studio owners helped to change the department's mind.
In a just-released Excise Tax Advisory [PDF], the DOR has determined that while physical fitness is "a secondary or
incidental benefit" of traditional yoga classes, "it is not typically the primary focus." The government writes:
In addition to physical postures ("asana"), traditional Yoga classes typically emphasize significant breath regulation ("pranayama") and meditation ("dhyana") components as well as significant discussion of the historical and philosophical origins of Yoga.
That's going to seem very odd to the many yoga teachers, such as ones I've had, who teach identical classes at yoga studios and health clubs.
I also wonder what the ruling will mean for those yoga studios, such as Slobody in downtown Seattle, that are trying very hard to make sure we know how rad and non-traditional they are. Slobody's slogan: "No incense. No chanting. No nonsense." Perhaps they'll have to add: "No tax break"?
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