NEW YORK, NEW YORK, July 27, 2012 (New York Daily News): State Taxation and Finance Department officials have ruled that that Yoga is not a “true exercise” activity under the tax code and therefore not subject to sales taxes. The Tax Department ruled that Yoga Salons, unlike gyms and other fitness centers, practice more spiritual activities, including “meditation and spiritual chanting.” The ruling brings to a close a dispute that erupted in April when the Tax Department notified Yoga salons across the city that they could be audited for unpaid sales taxes. “I am pleased that State Finance recognized the unfairness in treating Yoga studios like gyms and other fitness centers, and will not be charging independent studios the tax,” said Assemblywoman Linda Rosenthal (D-Manhattan), who interceded on behalf of city Yoga owners.
The 4.5% tax still applies on yoga classes taught at gyms and fitness studios.