Recreation services and physical fitness classes

From the 2024 DOR Tax Exemption Study

82.08.0291 - Recreation services and physical fitness classes Description Recreational, athletic, and fitness activities, equipment provided for those activities, and instructions in those activities provided by nonprofit youth organizations to members of the organization are exempt from sales taxes. Physical fitness classes provided by a local government are also exempt from sales taxes. Purpose To support the activities of youth organizations and to clarify that fees for physical fitness classes by local governments are not enterprise income. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.223 $0.231 $0.239 $0.247 Local Taxes $0.100 $0.104 $0.108 $0.111 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.212 $0.239 $0.247 Local Taxes $0.000 $0.087 $0.108 $0.111 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the sales taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local reven