Does Tennessee require sales tax for labor? I am ?

Question

I am taking private instruction from a trainer at a gym; of course it requires

a contract with the gym as the trainer is employed there. Should there be

a tax on that since it just involves labor? I need something of Tennessee

laws that I can print and take to them so that it would be official and because they are and have been charging others these taxes for some time.

Answer 1

I have the answer to your question, but I am sorry to say it is not the one you want.  Under Tennessee law (Tenn. Code Ann. § 67-6-212(a)(1)) membership dues at health and recreation clubs are subject to the state sales and use tax.  

Until July of this year, the first $150 of the annual membership dues was exempt from the tax.  In other words, if the monthly charge was $50, which would be equal to $600 per year, the tax would apply only to $450 (600 - 150).  But that's no longer true.  As of July 1, the full amount of the dues is taxable.

I realize you wanted a different answer, but it looks like your gym is doing the correct thing under state law.  See the source for more info.  Good luck!