Are charges for the use of tanning beds and hot tubs subject to New York sales tax?

Plain-English summary

Tub and Tan, Inc. operates tanning beds and hot tubs on its premises in Rochester, for use by the public for a fee. A tanning-bed customer enters an equipped room and gets a simulated suntan from adjustable light; a hot-tub customer soaks in a private room in a large tub of circulating hot filtered water. Tub and Tan asked whether these use charges are taxable.

The answer depends on where the facility is:

• Statewide — not taxable. New York's sales tax reaches retail sales of tangible personal property and a list of specifically enumerated services (Tax Law 1105). Charging customers to use tanning beds and hot tubs is neither a sale of tangible personal property nor one of the enumerated services. So no New York State tax — and, for this Rochester location, no Monroe County tax — is due.
• In New York City — taxable. New York City imposes its own tax under Tax Law 1212-A(b) on "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, whether or not any tangible personal property is transferred." Tanning and hot-tub facilities fall within that description, so the same charges would be taxable in New York City.

What this means for you

A service that escapes the state sales tax can still be caught by a local tax. New York's statewide sales tax is a closed list — if a service isn't tangible personal property and isn't on the enumerated-services list, it isn't taxed at the state level. Tanning-bed and hot-tub use falls outside that list.

New York City is the key exception here. The City has a separate 1212-A(b) tax aimed squarely at health salons, gyms, saunas, and similar wellness/relaxation facilities. If you run a tanning or hot-tub business in the five boroughs, expect these charges to be taxable even though they wouldn't be upstate.

Location, not the activity, drives the result. The identical service is untaxed in Rochester and taxable in New York City. Always check the local rules for the specific jurisdiction where the facility sits.

Common questions

Q: I run a tanning/hot-tub studio outside New York City. Do I collect sales tax on use charges?
A: Under this opinion, no state or county sales tax applies to the use charges, because the activity is not a sale of tangible personal property or an enumerated taxable service.

Q: Same business, but in New York City. Any difference?
A: Yes. New York City's 1212-A(b) tax reaches health-salon-type services and facility-use charges, so the charges are taxable there.

Q: Does it matter that no physical product changes hands?
A: For the City tax, no — 1212-A(b) applies "whether or not any tangible personal property is transferred." Statewide, the absence of a product is part of why the charge isn't taxed.

Citations and references

Tax Law:

• 1105 — imposes sales tax on retail sales of tangible personal property and on specifically enumerated services; use of tanning beds and hot tubs is neither
• 1212-A(b) — authorizes New York City's tax on weight-control salons, health salons, gymnasiums, Turkish and sauna baths and similar establishments, and on charges for the use of such facilities

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1985.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a85_53s.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-85(53)S
Sales Tax
November 8, 1985

Taxpayer Services Division
Technical Services Bureau
STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S850611B

On June 11, 1985 a Petition for Advisory Opinion was received from Tub and Tan, Inc., 283
Oxford Street, Rochester, New York 14607.
The issue raised is whether the use of either tanning beds or hot tubs is subject to sales tax.
Petitioner has constructed tanning beds and hot tubs on its premises for use by the general
public for a fee. In using a tanning bed, a customer enters a specially equipped room and exposes his
or her body to adjustable light exposure which will give a simulated sun tan. Hot tubs, which are
situated in private rooms, are large water filled tubs with constant circulation of hot filtered water.
The customer submerges himself or herself in the tub for a period of time.
The sales tax is imposed on the receipts from every retail sale of tangible personal property
with certain limited exceptions as well as on certain specifically enumerated services. (Tax Law
1105). The use of Petitioner's tanning beds and hot tubs under the circumstances described above
does not constitute a taxable transaction under section 1105 of the Tax Law; therefore, neither a New
York State nor the Monroe County local tax would be due. It should be noted, however, that New
York City imposes a tax on ". . . 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, whether or not any tangible personal property is transferred in conjunction therewith..."
(Tax Law 1212-A(b)). The use of Petitioner's facilities in New York City would therefore be subject
to such tax.

DATED: September 10, 1985

s/FRANK J. PUCCIA
Director
Technical Services Bureau

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth herein.

RODERICK G. W. CHU, COMMISSIONER
TP-8 (3/83)

GABRIEL B. DiCERBO, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR