Washington DOR Finds Taxpayer’s Fitness Classes Subject to Retailing Business and Occupation, Retail Sales Tax

The Washington Department of Revenue, Administrative Review and Hearings Division (division), Oct. 31 found that Taxpayer’s fitness classes were subject to retailing business and occupation and retail sales tax. Taxpayer, a crossfit training business, disputed the reclassification of its income from the service and other activities business and occupation excise tax classification to the retailing tax classification, as well as the resulting assessment. The division noted that a presumption existed that Taxpayer’s classes were a “physical fitness service” subject to retailing business and occupation tax and retail sales and use tax. The division denied Taxpayer’s petition because Taxpayer failed to ...