Just Say No to Dues Taxes!

How can government justify taxing health club membership dues, and what are you doing to help put a stop to this? Especially at a time when the obesity epidemic is causing a national healthcare crisis! Federal officials have estimated that treating obesity-related illnesses costs about $93 billion a year, and that was from a report in 2004.

It’s not like government hasn’t recognized the importance of this issue and taken numerous others steps to raise awareness and provide incentives for people to take better care of their health. In 2004, the Centers for Disease Control and Prevention predicted that obesity, caused by a sedentary lifestyle and poor nutrition habits, would overcome tobacco as the leading cause of death in the U.S. In 2006, the Health and Human Services secretary announced plans to develop physical activity guidelines, and in 2007, members of the advisory committee who will develop them were announced.

Other industries have also played a role in raising awareness and helping to curb the trend. The media has published countless studies on the benefits of fitness to combat obesity, which is a major cause of death. And, in the past several years, insurance companies have begun offering premium discounts to individuals who work out at fitness facilities. The company that has been most in the news lately is Medica Insurance Company. In 2003, Medica Insurance Company started offering $20-per-month incentive payments to members of fully insured plans who exercised at Life Time fitness centers at least eight times per month. It now also has agreements with most YMCAs and YWCAs in the Minnesota area, and, most recently, it added Curves fitness centers to its plan.

Currently, 25 states (almost half) impose a tax on fitness center dues. (You can view a summary of these on IHRSA’s website.) Yet, in 2004, the IRS approved tax deductions for obese Americans for doctor-approved weight-loss expenses, which include stomach-stapling surgery, approved weight-loss drugs and nutritional counseling. What kind of a mixed message is this?

For now, a few changes have been seen. On November 7, the Michigan Senate repealed its newly imposed sales tax on health club services. Then, in mid-November, the Maryland sales tax bill deleted health clubs after more than 14,000 emails, petition signatures, postcards and phone calls in protest.

This issue should be at the top of the fitness industry’s list to nip in the bud before it’s too late. It’s time for every fitness facility operator to do their part in making a major impact on reversing the tax on fitness center dues. Keep informed, write to your legislators and help be a part of fixing this national healthcare crisis — not just on a business level, but on a national level.