Are membership and sign-up fees at a women's weight-loss fitness center taxable in Texas, even with no pools or classes?

Plain-English summary

A women's weight-loss and fitness center — equipped only with hydraulic-resistance strength machines (no free weights, no pool, no showers) — asked the Comptroller to confirm in writing that its membership and sign-up fees were not taxable. Notably, a Comptroller staff member had verbally told the business its fees "would not be taxable" based on the facility having no water/pool facilities, and advised getting that in writing for the taxpayer's records — but the Comptroller's written response reversed that verbal guidance.

The written ruling holds that the facility's membership and sign-up fees are taxable, because Comptroller Rule 3.298(a)(1) (Amusement Services) explicitly includes health spas and fitness centers as taxable amusement services — the absence of a pool or classes doesn't matter to that classification. Tax applies to the total charge for the membership, including sign-up fees.

The ruling lays out the narrow exceptions where a charge escapes the amusement-services tax:

• A separately stated charge for genuine one-on-one personal training is not taxable, but only if the training (a) is truly one-on-one and (b) actually puts the client through the workout program, rather than just designing a program or teaching equipment use (Rule 3.298(a)(2)(B)).
• Group training sessions don't qualify for that exception and remain taxable, unless the group session is structured as a genuine "class" format (the ruling's example: Jazzercise-style classes).
• A membership purchased under a licensed healing-arts practitioner's written prescription, for the primary purpose of health maintenance or improvement, is exempt under Rule 3.298(g)(7).

What this means for you

Fitness center and health spa owners

Don't rely on an informal phone conversation with the Comptroller's office as a taxability determination — this letter itself corrects prior verbal guidance given to this same taxpayer. Charge tax on your full membership/sign-up fee unless you fall into one of the three carve-outs above.

Personal trainers and studios offering training packages

Structure genuine one-on-one training as a separately stated charge, distinct from general membership dues, and make sure the sessions involve actively leading the client through exercises (not just program design) to qualify for the exception. Group classes are taxable unless structured as a true "class" format like Jazzercise.

Accountants and tax professionals

Rule 3.298 is the controlling authority for the entire fitness/amusement-services category; this letter is a useful illustration that facility type (weight-loss vs. general fitness, presence/absence of pool) doesn't change the base taxability — only the three specific statutory/rule carve-outs (personal training, class-format group sessions, and medically prescribed memberships) do.

Common questions

Q: Are fitness center memberships always taxable in Texas?
A: Yes, by default — Rule 3.298(a)(1) treats health spas and fitness centers as taxable amusement services on membership and sign-up fees, regardless of the type of equipment or absence of a pool.

Q: Is personal training taxable?
A: A separately stated charge for genuine one-on-one personal training, where the trainer actively puts the client through the program, is not taxable. Group training sessions are taxable unless they take the form of an actual class (like Jazzercise).

Q: Is there a medical exemption?
A: Yes — a membership purchased under a written prescription from a licensed healing-arts practitioner for health maintenance or improvement is exempt under Rule 3.298(g)(7).

Q: Can I rely on informal phone guidance from the Comptroller's office?
A: This letter itself shows the risk of doing so — the taxpayer had been told verbally that fees weren't taxable, and the written ruling reversed that. Get taxability questions answered in writing, and remember that even a written STAR letter only binds the Comptroller for the taxpayer it was issued to (34 Tex. Admin. Code Rules 3.1, 3.10).

Citations and references

Statutes and rules:

• Comptroller Rule 3.298(a)(1) (amusement services — health spas and fitness centers)
• Comptroller Rule 3.298(a)(2)(B) (personal one-on-one training exception)
• Comptroller Rule 3.298(g)(7) (health club membership prescribed by a licensed healing-arts practitioner)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200103848L

Original ruling text

March 23, 2001

Dear **:

Thank you for your letter regarding whether or not COMPANY should be charging
sales tax on memberships and sign-up fees. Your fact situation and question
are restated below followed by my response.

I spoke with INDIVIDUAL in your office on 3/12/01. COMPANY is a weight loss,
fitness center for women. Their emphasis is on weight loss and body fat
reduction.

The machines in the facility are all hydraulic resistance for strength
training. There are no weights. The facility has no swimming or showers;
therefore, no water. Based on this information, INDIVIDUAL informed me that
COMPANY memberships and sign up fees would not be taxable. He advised me to go
ahead and send something in writing for my records and for future reference.

Response: Your charge to your members for access to your facility is taxable
as an amusement service. Subsection (a)(1) of Rule 3.298 - Amusement Services,
includes health spas and fitness centers as taxable amusement services.
Therefore you should collect tax on your total charge (including membership and
sign-up fees) for this service.

Tax is not due on separately stated charges for training. Based upon sales tax
rule 3.298 (a)(2)(B), a separately stated charge, flat fee, or contract
(separate and apart from the normal spa, health/fitness club membership) for
persons to participate in personal training sessions is not taxable as an
amusement service if:

a. the service involves personal one on one training, and

b. involves putting the client through the program, rather than just designing
the program and instruction on how to use the equipment.

Group training sessions do not qualify as personal training and are taxable
unless the group session takes on the format of a "class," similar to
Jazzercize.

Membership in a health club purchased pursuant to a written prescription by a
licensed practitioner of the healing arts for the primary purpose of health
maintenance or improvement, is also exempt from sales tax. See subsection
(g)(7) of the enclosed Rule 3.298, Amusement Services.

A complete set of rules, along with the text of the Tax Code, and a wealth of
other information are available through our website at
through the "Texas Taxes" window.

This opinion is based on the facts presented. Other facts though similar may
provide a different result.

I hope this information answers your questions. If you need additional
information, you may e-mail our tax help section at .
You may also call me toll-free at 1-800-531-5441, extension 3-4502. The
direct line is 512/463-4502. You may also write to Tax Policy Division,
Comptroller of Public Accounts.

Sincerely,

Gilbert Zamora
Tax Policy Division

cc: INDIVIDUAL