Are fees for outdoor adult and children's health and nature classes held in New York City public parks subject to sales tax?

Plain-English summary

A health-and-wellness business runs small-group classes for adults and children strictly outdoors in public parks in and around New York City. The curriculum is mind-and-body focused — breathing, meditation, and nature components, plus body movement, cardiovascular activity, and general well-being. Children's programs run weekly as an eight-week after-school series; adult classes are single sessions; groups are typically 15–20 people. The business asked whether its class receipts are subject to New York City's local sales tax. The stub headline guessed "subject to" the tax, but the Department concluded the opposite: the classes are not subject to sales tax — State or City.

State sales tax: New York taxes retail sales of tangible personal property and a specific list of enumerated services (Tax Law § 1105(a), (c)). Teaching health and nature classes isn't on that enumerated list, so there's no State sales tax on the receipts.

New York City local tax: The City is separately authorized to tax certain services (Tax Law § 1212-A(a)(2)), and NYC Administrative Code § 11-2002 taxes receipts of "weight control salons, health salons, gymnasiums, Turkish and sauna baths and similar establishments," plus charges for the use of such facilities. For the City tax to apply, the charge has to be made by one of those listed establishments or a similar establishment. This business runs its classes in public parks with no physical structure or facility of its own — it isn't a gym, health salon, or similar establishment. So the City tax doesn't reach it either. The deciding fact was the absence of a facility: the same fitness-style classes run inside a gym or health-salon facility could be taxed by the City.

What this means for you

Outdoor and pop-up fitness/wellness instructors

If you teach fitness, yoga, meditation, or nature/wellness classes without operating a gym, health salon, or similar facility — e.g., in public parks or other public spaces — your class fees generally aren't subject to New York State sales tax (not an enumerated service) or to New York City's § 11-2002 tax on health-salon/gymnasium establishments. The key is that you don't run a taxable facility.

Brick-and-mortar gyms and health salons in NYC — different answer

If you operate inside a gym, health club, weight-control or health salon, or a similar establishment in New York City, your charges for services and for the use of the facility can be subject to the City's local tax under § 11-2002. Operating a physical facility is what brings you within that provision. Don't assume "it's just a class" — the establishment's nature drives the City tax.

This is a City-tax question, not a statewide one

The § 11-2002 health-salon/gymnasium tax is a New York City local tax. Other localities have their own rules. The State-level conclusion (teaching classes isn't an enumerated service) is general, but the local facility tax depends on the jurisdiction — check the specific locality where you operate.

Accountants and tax professionals

The analysis runs § 1105(a)/(c) (no enumerated State service) and then § 1212-A(a)(2) plus NYC Admin Code § 11-2002, applying the "similar establishment" requirement. The dispositive fact was that the provider used public spaces with no physical facility, so it wasn't an establishment within § 11-2002 (consistent with TSB-A-13(6)S, TSB-A-10(46)S, TSB-A-17(16)S).

Common questions

Q: Are outdoor fitness or wellness classes taxable in New York?
A: Generally no. Teaching such classes isn't an enumerated State taxable service, and when held in public parks with no facility, they aren't within New York City's tax on health salons, gymnasiums, and similar establishments (NYC Admin Code § 11-2002).

Q: What made these classes non-taxable for the City tax?
A: The provider operated in public spaces with no physical structure or facility, so it wasn't a gym, health salon, or "similar establishment" under § 11-2002.

Q: Would the same classes be taxable inside a gym?
A: Potentially yes — charges by a gym, health salon, or similar NYC establishment (and for use of the facility) can fall under the City's § 11-2002 tax. Operating the facility is what triggers it.

Q: Does this apply outside New York City?
A: The § 11-2002 tax is a New York City local tax. Other localities set their own rules; the State-level "not an enumerated service" point applies generally.

Q: Can I rely on this opinion?
A: No. An Advisory Opinion binds the Department only as to the petitioner and the facts presented. It illustrates the Department's reasoning but cannot be relied on by another taxpayer.

Citations and references

Statutes and regulations:
- Tax Law § 1105(a) (sales tax on retail sales of tangible personal property)
- Tax Law § 1105(c) (sales tax on certain enumerated services — teaching these classes is not listed)
- Tax Law § 1212-A(a)(2) (authorizes New York City to impose local sales tax on certain services)
- NYC Administrative Code § 11-2002 (NYC tax on weight-control salons, health salons, gymnasiums, Turkish/sauna baths, and similar establishments)

Authority referenced in the opinion: TSB-A-13(6)S; TSB-A-10(46)S; TSB-A-17(16)S (meaning of "similar establishment").

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao.htm
• Opinion: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales/24-41s.htm
• Printer-friendly PDF: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a24-41s.pdf

Original ruling text

TSB-A-24(41)S
Sales Tax
September 30, 2024 

The Department of Taxation and Finance received a Petition for an Advisory Opinion from [ REDACTED ] (“Petitioner”), [ REDACTED ]. Petitioner asks whether its receipts from adult and children’s health and nature classes are subject to New York City’s local sales tax. We conclude that Petitioner’s classes are not subject to sales tax.

Facts

Petitioner operates a health and wellness business that offers classes to small groups of both adults and children. Petitioner’s classes take place strictly outdoors in local public parks in and around New York City. Petitioner’s programs for children occur once a week as part of an eight week after-school program. Petitioner’s adult classes are offered as single classes. Typically, the groups consist of fifteen to twenty participants. Petitioner’s curriculum has a mind and body focus with breathing, meditation and nature components. Petitioner oversees and trains instructors to include the elements of its curriculum. The classes include components to support body movement, cardiovascular movement, and overall health and well-being.

Analysis

New York State sales tax applies to the receipts from every retail sale of tangible personal property, except as otherwise provided for in the Tax Law, and the receipts from every sale (excluding sales for resale) of certain enumerated services. See Tax Law § 1105(a), (c). Petitioner’s health and nature classes are not an enumerated service and, thus, are not subject to the New York State sales tax.

Tax Law § 1212-A(a)(2) authorizes New York City to impose its local sales tax on certain services. New York City Administrative Code § 11-2002 imposes local sales tax on the receipts from every sale of services by weight control salons, health salons, gymnasiums, Turkish and sauna baths and similar establishments and every charge for the use of such facilities. In order for a charge to be subject to sales tax under this provision, it must be a charge made by one of the entities described, or a similar establishment. See TSB-A-13(6)S; TSB-A-10(46)S; TSB-A-17(16)S.

Petitioner does not operate an athletic club, weight control salon, gymnasium, or other similar establishment. Petitioner utilizes public spaces to provide its services and does not use a physical structure or facility. Petitioner is not a weight control salon, health salon, gymnasium, Turkish and sauna bath or similar establishment, as contemplated by NYC Administrative Code § 11-2002(a). Accordingly, Petitioner’s charges are not subject to the New York City sales tax.

DATED: September 30, 2024

MARY ELLEN LADOUCEUR
Principal Attorney

Note: 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. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.