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Posted on Wed, Nov. 11, 2009 10:56 PM
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COMMENTARY

Tax the bad habits, not the good

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Here’s one to ponder:

Should yoga practiced in a health club be taxed as a service, while yoga done in a studio get a free pass as a spiritual, healing act? Many yoga devotees are claiming “yes.”

They’re making the wrong argument, but I’ll grant that many are operating with misinformation. Some misleading reporting and people’s penchant to abhor taxes caused more furor than this recent state action deserves.

The so-called “yoga tax” is not so much a new tax, as it is Missouri enforcing collection on an old statute. And contrary to initial reports, a few other states also tax yoga studios.

A series of court cases bolstered the Missouri Department of Revenue’s view that yoga and pilates’ classes are taxable as services offered in “places of entertainment, amusement and recreation.” Last month, 140 yoga and pilates studios were told to start collecting and remitting a 4.225 percent sales tax by Nov. 1.

First, yoga studios are businesses. I expect to pay a fee when entering one. And at this point in yoga’s popularity, it would be impossible to determine where the practice is meditative and linked to its origins and where it is a poorly orchestrated fad. Studios exist with untrained instructors barking directions, wired to headsets. This is neither calming, nor meditative.

The larger question is which services are best taxed, and which should be given a break, especially for the betterment of society? Why is it that the work the mechanic does on your car, the advice of an architect, the consultation of a lawyer are all untaxed services?

Missouri’s tai chi instructors are likely keeping their heads down. And what about yoga practiced in a corporate office as a wellness program?

Yoga advocates wish to differentiate their practice from recreation based on its spiritual, meditative and health benefits. They are correct in that argument. Yoga is phenomenal in this regard.

But the tax gurus didn’t come after the yoga studios, some of which were collecting the tax, from that perspective. They saw the locations as being legally taxable.

I predict the yoga community will prevail. A similar backlash caused Washington state to back off from collecting new and back taxes on yoga studios. A Facebook page is up, organizing instructions are being sent, and a few state representatives have been lobbied.

Peel away the “taxes are bad” sentiments, and a worthwhile theme emerges. Tax unhealthy habits heavier, and pass the break to the healthy ones.

My favorite, yet least feasible post: “The State should encourage healthy living by subsidizing yoga, funded by a tax on McDonalds, Burger King, Taco Bell, Dairy Queen, CocaCola, candy, beer, etc. Judging by Missouri’s consumption of these items, Yoga would end up being free!”

Namaste to that.

To reach Mary Sanchez call 816-234-4752 or send e-mail to msanchez@kcstar.com.

Posted on Wed, Nov. 11, 2009 10:56 PM
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