While group exercise classes led by instructors are especially popular these days, a recent decision subjects such classes to a special New York City sales tax. In a May 23, 2019, decision, a New York Administrative Law Judge (ALJ) determined that SoulCycle, Inc. indoor cycling classes were subject to a special New York City 4.5% sales tax.

In their article for Bloomberg Tax, Eversheds Sutherland attorneys Open Weaver Banks and Chelsea Marmor discuss how the company failed to convince the ALJ that the state sales tax exemption for “participatory sports” should extend to the city’s sales tax.

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