Were monthly and per-class charges for coach-led group personal training subject to Florida sales tax?

Plain-English summary

The Florida Department of Revenue concluded that monthly and limited-class charges for group personal training were not subject to sales tax.

Members could enter the studio only during scheduled classes, all use occurred under a certified coach's instruction and supervision, and the facility closed with its equipment stored between classes. Members could not come and go freely, follow their own programs, or use the facility for other activities.

Those restrictions made the charges exclusively for professional sports instruction rather than taxable dues for access to recreational facilities. Retail merchandise remained taxable, and the studio owed tax on the cost of merchandise it gave away.

What this means for you

Training studios

Limit facility access to the actual instruction period and document the coach-led curriculum. Labeling a general gym membership as instruction will not qualify.

Retail operations

Separate the nontaxable training charge from taxable merchandise sales and account for use tax on giveaways.

Common questions

Q: Were unlimited monthly classes taxable?
A: No, because access remained limited to scheduled instruction.

Q: Were branded merchandise sales exempt too?
A: No.

Citations and references

• Fla. Stat. §§ 212.02(1), 212.04(1), 212.05, 212.07(8), and 213.22
• Fla. Admin. Code r. 12A-1.005(4)(d)2.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 14A-008

Original ruling text

Executive Director
Marshall Stranburg

QUESTION: WHETHER CERTAIN CHARGES FOR PERSONAL INSTRUCTION ARE
SUBJECT TO SALES TAX.
ANSWER: NO. MEMBERS MAY USE THE PREMISES ONLY DURING THE
INSTRUCTION PERIOD AND ONLY FOR TRAINING PURPOSES.
March 20, 2014
Subject: Technical Assistance Advisement – TAA 14A-008
Sales and Use Tax - Personal training
Section(s) 212.04, 212.02, 212.05, 212.07(8), Florida Statutes (“F.S.”)
Rule(s) 12A-1.005, Florida Administrative Code (“F.A.C.”)
XXX (“Taxpayer”)
FEIN: XXX
BPN: XXX
XXX (“Company”)
Dear XXX:
This letter is a response to your petition dated XXX, for the Department’s issuance of a
Technical Assistance Advisement (“TAA”) to Petitioner, concerning charges for personal
training. Your petition has been carefully examined, and the Department finds it to be in
compliance with the requisite criteria set forth in Rule Chapter 12-11, F.A.C. This response to
your request constitutes a TAA and is issued to you under the authority of section 213.22, F.S.
Issue
Whether Taxpayer’s charges for personal training are subject to sales tax?
Facts
Taxpayer operates a XXX. Members do not sign an agreement. Monthly members pay for
unlimited classes within a given month. Taxpayer sells merchandise at retail, including items
with Company’s name. Taxpayer’s retail merchandise sales are less than the cost of goods sold.
Taxpayer’s agreement with Company requires Taxpayer to pay a fee to use Company’s name.
The agreement permits Taxpayer to operate independently, except regarding use of Company’s
name.

Child Support Enforcement – Ann Coffin, Director  General Tax Administration – Maria Johnson, Director
Property Tax Oversight – James McAdams, Director  Information Services – Damu Kuttikrishnan, Director

www.myflorida.com/dor
Tallahassee, Florida 32399-0100

Technical Assistance Advisement
Page 2 of 3
The studio is only open and capable of being used by members during scheduled class periods.
Some members pay for monthly memberships, or others pay for a limited number of classes.
Taxpayer has no other memberships or persons using the studio. Taxpayer removes equipment
to storage and closes the facility when classes are not being conducted.
All classes are at the instruction and supervision of a certified trainer/coach. Certification is
controlled and required by Company. The classes and instruction are administered in a group
setting, with between three and fifteen people in each class. New members are required to attend
certain classes initially. The classes are limited to a specific schedule, and members are only
permitted access to the facilities during those set class times. The facilities are closed at all other
times, and membership does not provide the right or ability to access Taxpayer’s facilities at any
time other than when classes are held.
When classes are conducted, a specific daily regime is performed. The classes may relate to
sports such as football, gymnastics, powerlifting, and rowing. The instruction may also relate to
self-defense, endurance training, and mobility exercises. Modifications can be made by the
coach as the coach. Otherwise, members are not allowed to deviate from the manner of use of
Taxpayer’s studio.
Taxpayer Position
The request asserts that the charges are not taxable because they are for personal instruction.
You cite Rule 12A-1.005(4)(d)2., F.A.C., as authority.
Law and Discussion
Section 212.04(1), F.S., requires sales tax to be collected on the sales price or amounts received
from the sale of admissions. Section 212.02(1), F.S., defines the term “Admissions.” It includes
all dues and fees collected by private or membership clubs providing recreational facilities. Rule
12A-1.005(4)(d), F.A.C., provides that certain charges are not considered taxable dues and fees.
Rule 12A-1.005(4)(d)2., F.A.C., provides that charges for professional instructions in any sport
conducted at a club are not dues and fees, so long as such charges are exclusively for the
instructions and include the use of the facility only during the period of time the instructions are
taking place. The Rule provides that it is not the intention of the Rule to allow a club to exempt
what are in effect a dues or membership fee by labeling such charges as instruction fees. As with
most instruction, once the member learns the sport for which instruction is provided, then it is
presumed that the instruction will be completed.
Taxpayer does not allow access to members so that they may come and go as they please, to use
the studio facilities at their leisure, or to follow their own program. Taxpayer does not offer
other activities in the studio. The studio is only used during the personal training classes. As
such, the members are only receiving the personal instruction addressed by Rule 12A1.005(4)(d)2., F.A.C.

Technical Assistance Advisement
Page 3 of 3
Taxpayer is required to collect and remit sales tax on retail merchandise sales. See s. 212.05,
F.S. Taxpayer is required to remit tax on the cost price of merchandise given away. See s.
212.07(8), F.S.
Conclusion
Taxpayer’s charges for personal training are not subject to sales tax. So long as the charge is
paid by the member for instructional courses only, then the tax imposed by s. 212.04, F.S., does
not apply.
This response constitutes a Technical Assistance Advisement under section 213.22, F.S., which
is binding on the Department only under the facts and circumstances described in the request for
this advice, as specified in section 213.22, F.S. Our response is predicated on those facts and the
specific situation summarized above. You are advised that subsequent statutory or
administrative rule changes, or judicial interpretations of the statutes or rules, upon which this
advice is based, may subject similar future transactions to a different treatment than expressed
in this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions
of section 213.22, F.S. Confidential information must be deleted before public disclosure. In an
effort to protect confidentiality, we request you provide the undersigned with an edited copy of
your request for Technical Assistance Advisement, the backup material and this response,
deleting names, addresses and any other details which might lead to identification of the
taxpayer. Your response should be received by the Department within 10 days of the date of this
letter.
Respectfully,

Charles Wallace
Senior Attorney
Technical Assistance & Dispute Resolution
850-717-7541
Record ID: 162153