For a smaller neighborhood health club charging initiation/membership fees plus separate charges for personal training, baby-sitting, and massage, which fees are subject to New York State or New York City sales tax?

Plain-English summary

The Paris Health Club, a West End Avenue fitness facility with a pool, weight equipment, and sauna/steam rooms, offers memberships open to the general public on a first-come, first-served basis, with no member control over club governance — meeting the same "not an athletic club" test applied to larger clubs like the Sports Club/LA and Reebok Sports Club/NY in the same-day companion opinions (TSB-A-08(10)S, (11)S). Beyond base membership, the club offers personal training, baby-sitting, and massage therapy (by New York State licensed, non-medical massage therapists) for additional fees, and also hosts independent outside contractors who provide facials and waxing and bill/collect their own fees directly.

The tax breakdown:

• Initiation fees and membership dues: not taxable — the club isn't an "athletic club" (no member control, membership capped only by facility size) and isn't a "gymnasium" under NYC's local law (it provides genuine participant sporting activities, like the pool).
• Personal training and baby-sitting fees: not taxable under either New York State sales tax (not an enumerated § 1105(c) service) or NYC's local service tax (not similar to the beauty/massage/gymnasium services that statute enumerates).
• Massage therapy sessions: taxable, but only under New York City's local service tax — massage performed by non-medical personnel is specifically enumerated as a taxable NYC service, even though it isn't independently taxed under New York State's own sales tax scheme. (Massage by a licensed medical professional practicing medically, like a physiotherapist or chiropractor, could instead be excluded as a medical service — but this club's therapists aren't providing medical treatment.)
• Facials and waxing by outside contractors: also taxable under NYC's local service tax, but the outside contractors themselves — not the club — are responsible for registering as vendors and collecting/remitting that tax on their own separate charges to customers.

What this means for you

Health clubs offering massage, facials, or similar personal-care add-ons

Even where your core membership/training/child-care fees escape tax entirely, non-medical massage, facials, and similar beauty/spa-style services trigger New York City's local service tax specifically — track and remit that tax on those line items even if you correctly treat everything else as untaxed.

Clubs hosting independent contractors (estheticians, facial/waxing specialists) on-site

If outside providers bill and collect their own fees directly from your customers, the registration/collection obligation for NYC's local tax on their services falls on them, not on your club — but it's worth confirming your independent contractors actually understand and comply with that obligation, since customers may assume the club handles it.

Accountants advising multi-service fitness/wellness clients

This is the third in a trio of same-day, closely related opinions (alongside TSB-A-08(10)S and (11)S) establishing a consistent Department framework for health clubs: membership/training/child-care usually untaxed; lockers taxable state+local; non-medical massage/spa/beauty services taxable NYC-local-only. Use all three together as a comprehensive fee-classification checklist for health-club clients.

Common questions

Q: Are personal training and baby-sitting fees taxable at a health club?
A: No — neither fits New York State's enumerated taxable services nor NYC's local beauty/gymnasium service tax category.

Q: Is massage therapy at a health club taxable?
A: Yes, under New York City's local service tax specifically (not New York State sales tax), unless the massage is performed by a licensed medical professional as a medical service.

Q: Who's responsible for collecting tax on facials/waxing performed by an outside contractor at the club?
A: The outside contractor, since they bill and collect their own separate fees directly — they must register as a vendor and collect/remit the applicable NYC local tax themselves.

Q: Does this ruling apply to any health or fitness club?
A: This is a fact-specific Advisory Opinion binding only on The Paris Health Club Inc. It closely tracks the same-day companion opinions for two other clubs, but each club's own governance structure and service menu needs independent review.

Citations and references

• Tax Law § 1105(c) (enumerated taxable services)
• Tax Law § 1105(f)(1), (2) (admission charges; participant-sports exclusion; social/athletic club dues)
• Tax Law § 1107(a) (additional NYC tax parallel to §§ 1105/1110)
• Tax Law § 1212-A(a)(2) (NYC local tax on beauty/gymnasium/health-salon services)
• NYC Administrative Code § 11-2002(h) (NYC tax on weight-control salons, gymnasiums, massage, etc.)
• 20 NYCRR § 527.11(b) (club/organization and athletic club definitions)
• William A. Barrett, Adv Op Comm T&F, Oct. 9, 2003, TSB-A-03(38)S
• Matter of Prospect Park Health and Racquet Associates, Dec Tax App Trib, Oct. 13, 1994, DTA Nos. 811196 & 811608
• Carapan, Inc., Adv Op Comm T&F, June 21, 1993, TSB-A-93(40)S
• Manhattan Athletic Club LLC, Adv Op Comm T&F, July 26, 2002, TSB-A-02(43)S
• Dianne C. Hoffman, C.P.A., Adv Op Comm T&F, Dec. 27, 1993, TSB-A-93(64)S

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2008.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a08_12s.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-08(12)S
Sales Tax
February 14, 2008

Office of Tax Policy Analysis
Taxpayer Guidance Division
STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S071114A

On November 14, 2007, the Department of Taxation and Finance received a Petition for
Advisory Opinion from The Paris Health Club Inc., 752 West End Avenue, New York,
New York 10025. Petitioner, The Paris Health Club Inc., provided additional information
pertaining to the Petition on November 19, 2007, and November 21, 2007.
The issue raised by Petitioner is whether the fees charged for use of its facilities and
additional fees charged for personal training, baby-sitting, and massage services are subject to
New York State and local sales taxes.
Petitioner submitted the following facts as the basis for this Advisory Opinion.
Petitioner operates a health and fitness club that provides a variety of fitness and
participant sporting activities at its facility at 752 West End Avenue, New York City.
Petitioner’s club includes an indoor swimming pool; a fitness area equipped with fitness
equipment, including treadmills, stepping machines, rowing machines, and weight-lifting
equipment; and sauna and steam rooms. Petitioner’s members do not control any social or
athletic activities, selection of members or club management, or possess any proprietary interest
in Petitioner. The number of members is restricted solely due to the physical size of the facility.
Memberships are available to the general public on a first-come, first-served basis.
Petitioner charges initiation and membership fees for the use of its facilities. Petitioner’s
charges to its patrons entitle them to use its facilities for activities intended to improve physical
well-being and overall fitness. Petitioner offers a variety of classes, such as Pilates, yoga,
aerobic step, belly dancing, and personal training services. Petitioner also provides spa services,
which include massages by New York State licensed massage therapists. Services for facials and
waxing for both men and women can be scheduled at the club with outside individuals who
provide the services and charge and collect their own receipts.
Certain services, such as personal training, baby-sitting, and massages are available for
an additional fee. Members may engage a personal trainer directly for personal training services.
Applicable law and regulations
Section 1105(c) of the Tax Law imposes tax upon the receipts from every sale, except for
resale, of certain enumerated services.
Section 1105(f) of the Tax Law imposes sales tax, in relevant part, on the following:

-2TSB-A-08(12)S
Sales Tax
February 14, 2008

(1) Any admission charge where such admission charge is in excess of ten cents
to or for the use of any place of amusement in the state . . . except charges to a patron for
admission to, or use of, facilities for sporting activities in which such patron is to be a
participant, such as bowling alleys and swimming pools. . . .
(2)(i) The dues paid to any social or athletic club in this state if the dues . . . are
in excess of ten dollars per year, and on the initiation fee alone, regardless of the amount
of dues, if such initiation fee is in excess of ten dollars. . . .
Section 1107(a) of the Tax Law provides, in part:
General. On the first day of the first month following the month in which a
municipal assistance corporation is created under article ten of the public authorities law
for a city of one million or more, in addition to the taxes imposed by sections eleven
hundred five and eleven hundred ten, there is hereby imposed on such date, within the
territorial limits of such city, and there shall be paid, additional taxes . . . which except as
provided in subdivision (b) of this section, shall be identical to the taxes imposed by
sections eleven hundred five and eleven hundred ten. Such sections and the other
sections of this article, including the definition and exemption provisions, shall apply for
purposes of the taxes imposed by this section in the same manner and with the same force
and effect as if the language of those sections had been incorporated in full into this
section and had expressly referred to the taxes imposed by this section.
Section 1212-A(a)(2) of the Tax Law authorizes New York City to impose a local sales
tax at the same uniform rate on "beauty, barbering, hair restoring, manicuring, pedicuring,
electrolysis, massage services and similar services, and every sale of services by weight control
salons, health salons, gymnasiums, turkish and sauna bath and similar establishments and every
charge for the use of such facilities . . . but excluding services rendered by a physician,
osteopath, dentist, nurse, physiotherapist, chiropractor, podiatrist, optometrist, ophthalmic
dispenser or a person performing similar services licensed under title VIII of the education law;"
such tax to be administered and collected by the Commissioner of Taxation and Finance.
Section 11-2002(h) of the Administrative Code of the City of New York (New York
CityAdministrative Code) imposes sales tax, in part, on:
Receipts from beauty, barbering, hair restoring, manicuring, pedicuring,
electrolysis, massage services and similar services, and every sale of services by weight
control salons, health salons, gymnasiums, turkish and sauna bath and similar
establishments and every charge for the use of such facilities. . . .
Section 527.10(d)(4) of the Sales and Use Tax Regulations provides, in part:
Charges to a patron to or for the use of sporting facilities or activities in which the
patron is to be a participant are excluded from tax.

-3TSB-A-08(12)S
Sales Tax
February 14, 2008

Section 527.11(b) of the Sales and Use Tax Regulations provides, in part, the following
definitions of terms that are contained in section 1105(f)(2) of the Tax Law:
(5) Club or organization. (i) The phrase club or organization means any entity
which is composed of persons associated for a common objective or common activities.
Whether the organization is a membership corporation or association or business
corporation or other legal type of organization is not relevant. Significant factors, any
one of which may indicate that an entity is a club or organization, are: an organizational
structure under which the membership controls social or athletic activities, tournaments,
dances, elections, committees, participation in the selection of members and management
of the club or organization, or possession by the members of a proprietary interest in the
organization. The organizational structure may be formal or informal.
(ii) A club or organization does not exist merely because a business entity:
(a) charges for the use of facilities on an annual or seasonal basis, even if an
annual or season pass is the only method of sale and provided such passes are sold on a
first-come, first-served basis;
(b) restricts the size of the membership solely because of the physical size of the
facility. Any other type of restriction may be viewed as an attempt at exclusivity;
(c) uses the word club or member as a marketing device;
(d) offers tournaments, leagues and social activities which are controlled solely by
the management.
*

*

*

(7) Athletic club. (i) An athletic club is any club or organization which has as a
material purpose or activity the practice, participation in or promotion of any sports or
athletics.
*
*
*
(ii) Athletic activities does not include exercising or calisthenics solely for health
or weight reduction purposes, as contrasted to sports. An establishment that merely
provides steam baths, saunas, rowing machines, shaking machines and other exercise
equipment shall not be considered an athletic club. However, there is a four-percent local
sales tax in the city of New York on every sale of services by weight control salons,
health salons, gymnasiums, Turkish baths, sauna baths and similar establishments, and on
every charge for the use of such facilities.

-4TSB-A-08(12)S
Sales Tax
February 14, 2008

Opinion
Petitioner=s charges to its members entitle them to use its facility, including an indoor
swimming pool for sporting activities in which they are to be a participant. Petitioner=s initiation
fee and membership dues for use of the facility, therefore, are not subject to the tax on admission
charges under section 1105(f)(1) of the Tax Law. Petitioner=s initiation fee and monthly
membership dues are subject to sales tax under section 1105(f)(2) of the Tax Law if Petitioner
operates an athletic club as defined in paragraphs (5) and (7) of section 527.11(b) of the Sales
and Use Tax Regulations.
Petitioner=s members do not possess any proprietary interest in Petitioner, control any
social or athletic activities, or participate in the selection of members or club management.
Membership in the club is limited only due to the size of the facility. Therefore, Petitioner is not
operating an athletic club as defined in paragraphs (5) and (7) of section 527.11(b) of the Sales
and Use Tax Regulations. Accordingly, Petitioner=s charges to its members for initiation fees
and membership dues are not subject to tax as dues paid to an athletic club pursuant to section
1105(f)(2) of the Tax Law.
Since Petitioner provides participant sporting activities and facilities to its members,
Petitioner=s facility is not a weight control salon, gymnasium, or other establishment described in
section 11-2002(h) of the New York City Administrative Code. See William A. Barrett, Adv Op
Comm T&F, October 9, 2003, TSB-A-03(38); Matter of Prospect Park Health and Racquet
Associates and Peter J. Sferrazza and George Hart, as Partners, Dec Tax App Trib, October 13,
1994, DTA nos. 811196 and 811608. Petitioner=s charges to its members for initiation fees and
membership dues, therefore, are not for services provided by, or for the use of facilities of,
weight control salons, gymnasiums, or other establishments as described in such section
11-2002(h) and are, thus, not subject to the local New York City sales tax imposed by that
section.
Petitioner also offers its members personal training services, baby-sitting services, and
massage therapy sessions for additional fees. The additional fees for massage therapy sessions
are receipts for services subject to New York City sales tax under section 1212-A(a)(2) of the
Tax Law and section 11-2002(h) of the New York City Administrative Code. Massage services
that are provided by a physiotherapist, chiropractor, podiatrist, osteopath, or any person
authorized to practice medicine and licensed under Title VIII of the Education Law, may be
excluded from New York City sales tax if the services are medical in nature, as are the services
provided by the categories of professionals enumerated in section 1212-A of the Tax Law and
section 11-2002(h) of the Administrative Code. However, the massage services provided by
Petitioner are not medical in nature and do not qualify for the exclusion. See Carapan, Inc., Adv
Op Comm T&F, June 21, 1993, TSB-A-93(40)S; Manhattan Athletic Club LLC, Adv Op Comm
T & F, July 26, 2002 TSB-A-02(43)S.
Baby-sitting services and personal training services are not included in the services of
beauty, barbering, hair restoring, manicuring, pedicuring, electrolysis, and massage services that

-5TSB-A-08(12)S
Sales Tax
February 14, 2008

are enumerated as taxable services in section 11-2002(h) of the New York City Administrative
Code and are not similar to such services. Accordingly, an additional fee for baby-sitting
services and personal training services would only be subject to the New York City sales tax if it
were a charge for services sold by a weight control salon, health salon, gymnasium, Turkish or
sauna bath or similar establishment, or as a charge for the use of such facilities. Since
Petitioner=s facility is not a weight control salon, gymnasium, or similar establishment, the fees
for baby-sitting services and personal training services are not subject to the New York City
sales tax. Also, section 1105(c) of the Tax Law imposes New York State sales tax on the
receipts from certain enumerated services. Since massage services, baby-sitting services, and
personal training services are not included in the services taxed under section 1105(c) of the Tax
Law, the receipts from such services are not subject to the New York State sales tax. William A.
Barrett, supra; Dianne C. Hoffman, C.P.A., Adv Op Comm T&F, December 27, 1993,
TSB-A-93(64)S.
Accordingly, the initiation fee, membership dues, and additional fees for baby-sitting
services and personal training services are not subject to any of the taxes imposed under sections
1105(c), 1105(f), or 1107 of the Tax Law or section 11-2002(h) of the New York City
Administrative Code. The additional fee for massage therapy is subject to the tax imposed under
section 11-2002(h) of the New York City Administrative Code, but is not subject to the taxes
imposed under sections 1105 and 1107 of the Tax Law.
The separate fees paid by patrons to outside individuals who provide facials and waxing
at Petitioner’s facility are receipts subject to the tax imposed by section 11-2002(h) of the
New York City Administrative Code on the services of beauty, barbering, hair restoring,
manicuring, pedicuring, electrolysis, massage services, and similar services. The person or
entity selling such services is required to register as a vendor and is responsible for collecting
and remitting any applicable taxes on such receipts.

DATED: February 14, 2008

NOTE:

/s/
Jonathan Pessen
Tax Regulations Specialist IV
Taxpayer Guidance Division

An Advisory Opinion is issued at the request of a person or entity. It is
limited to the facts set forth therein and is binding on the Department only
with respect to the person or entity to whom it is issued and only if the
person or entity fully and accurately describes all relevant facts. An
Advisory Opinion is based on the law, regulations, and Department
policies in effect as of the date the Opinion is issued or for the specific
time period at issue in the Opinion.