SEATTLE — People who run martial arts studios are just now finding out they probably should have paid more attention to the Legislature this year.
When lawmakers passed House Bill 1550 to streamline the state sales tax process, one of the changes they made was to reclassify some recreation and athletic activities as “retail” instead of “services.”
KING-TV reports that change directly impacts martial arts facilities, which are now classified as a fitness activity.
That means their students will now have to pay sales tax.
Government officials made an effort to educate the public and these businesses about the tax change, but it’s still coming as a surprise to some.