Ezel / Tax Rulings / TX
TX 8501L0626D12 Sales and/or Use Tax (State,Local,MTA) 1985-01-04

Were customer charges for using passive exercise equipment at a Texas salon taxable?

Short answer: Yes. A salon charging customers to use passive exercise equipment was providing a taxable service. From October 2, 1984, charges were subject to 4.125% state tax plus applicable location tax.

Apply this to your situation

This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Texas Comptroller ruled that a salon charging customers to use "passive" exercise equipment was providing a taxable service.

Customer charges became subject to the 4.125% state sales-tax rate on October 2, 1984, plus any applicable location tax. Those rates and the effective date are the historical terms stated in the 1985 letter.

What this means for you

Fitness and weight-loss salons

Under this ruling, charging for access to passive exercise equipment was taxable even though customers did not use conventional active-exercise equipment.

Accountants and tax professionals

The letter provides a historical rate and effective date, not a current tax-rate statement. Check current law before calculating tax today.

Customers

The ruling addressed the salon's charge for equipment use. It did not discuss medical prescriptions, personal training, or product sales.

Common questions

Q: Were passive exercise-equipment charges taxable?
A: Yes.

Q: When did the letter say tax began to apply?
A: October 2, 1984.

Q: What rate did the letter state?
A: A 4.125% state rate plus applicable location tax.

Q: Did the ruling address ordinary gym equipment or personal training?
A: No. It addressed a salon's charges for use of passive exercise equipment.

Citations and references

The letter did not cite a specific statute or administrative rule.

Source

Original ruling text

January 4, 1985

Dear ***:

Thank you for your recent letter regarding taxation of sales a SALON ABC.

Salons that offer, for a fee, the use of "passive" exercise equipment
have been determined to be offering a taxable service. Charges to customers
as of October 2, 1984, are subject to state sales tax (4.125%) as well as
applicable location tax.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact us if you have additional questions. You may call
toll free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Tax Policy Section
Tax Administration Division

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