Transaction Tax Talk

On Sunday, Missouri became the only state to enforce a sales tax on what many see as a spiritual pursuit — the practice of yoga. So, is Yoga a spiritual practice or is it only another form of exercise like pilates? The distinction is an important one. If yoga is indeed a spiritual practice it is constitutionally protected and cannot be taxed.

Last year a similar situation arose in Washington when that state began including yoga studios in a group of recreational organizations that were required to charge customers sales tax. Yoga practitioners, teachers and studio owners in Seattle and around the state united to make their case to the Department of Revenue that yoga is more than just a recreational activity and should be protected from taxation by the First Amendment. Mike Garylow of the Washington Department of Revenue agreed and decided to leave yoga studios alone.

It remains to be seen if Missouri will follow Washington's lead or if it will become the first state to levy sales taxes on the services provided by yoga studios.