New York State Is Attempting to Tax Its Yoga Studios
- Auditing them under the claim they should be subject to the same 4.5 percent tax and the same regulations as fitness studios (versus dance or movement studios).
- Forcing yoga studios to treat instructors as employees rather than independent contractors.
- Labeling yoga studios as fitness studios, which are required to pay licensing fees.
- Yoga classes are not specifically listed among the services and classes that are taxable; therefore, the matter is open to interpretation.
- The proposed 4.5 percent tax would equate to studios needing to increase their class fees by about $1 for a every $20 class, a cost that would then be passed on to students.
- Only the largest studios could survive if burdened with the thousands of dollars it would cost if independent contractors were to become employees.