Information on New Sales Tax
Dear Members:
Effective October 1, 2014, the DC Council has mandated a new 5.75% sales tax on health-clubs and ancillary services such as group fitness and personal training.
We believe this is a misguided law that dis-incentivizes health and wellness and will have the greatest negative impact on those who are on the margin of fitness – the exact opposite of what smart tax policy should be designed to do.
Prior to its passage, we spearheaded the local effort to prevent this tax and many of you assisted us in that effort. While we were not successful, we appreciate your support.
Although this tax is on the books, we have not stopped our efforts and in fact will resume those efforts once a new Mayor has been elected. We will solicit your support while respecting those members who accept this new tax.
Since this tax went into effect October 1, beginning on October 24th, our next billing date, you will see a 5.75% sales tax on your monthly dues going forward. Any personal training or group fitness packages purchased after October 1 will also be taxed at time of purchase.
This sales tax does not apply to those of you who bought such services on an installment plan prior to October 1, 2014.
Due to this new tax burden, VIDA Fitness has cancelled its nominal annual increase in membership fees for the calendar year 2015.
We appreciate and thank you for your loyalty to VIDA Fitness!
Sincerely,
David von Storch
President and Founder