Lawmakers consider a KO on Wash. martial arts tax
by Lindsay CohenTuesday, January 3rd 2017



SEATTLE - A new bill proposed in Olympia would lift the tax on tae kwon do and other martial arts.
Martial arts schools began charging the sales tax on January 1, 2016, after lawmakers reclassified them as "athletic or fitness facilit(ies)."
The move came as a blow to small business owners who argued that karate, judo, self defense, and other classes are more about discipline and technique than about a workout.
"It was marginalizing our contribution as martial arts schools, not health clubs," said Andy Wilson, owner of MKG Martial Arts in Seattle. "A lot of us actually take pride in teaching self defense and martial arts and transformation. It's not just about physical fitness."
Wilson, a board member of the Washington Martial Arts Association, said some students stopped attending classes because they couldn't shoulder the tax, which is 9.6 percent in Seattle -- or just under $10 for every $100 spent. A full-time staff member who left his North Seattle studio wasn't replaced, and the school didn't grow its revenue in 2016, Wilson said.
"It just instantly hit us," he added. "The whole process is really demoralizing, and frustrating and exhausting, frankly."
Lawmakers have proposed amending the law, reclassifying martial arts schools, and repealing the tax with a bill proposed for the 2017 session.
House Bill 1032 calls the tax an "unintended consequence of the passage of HB 1550 during the 2015 legislative session," arguing that "martial arts training and instruction that take place outside of a fitness facility are treated differently from similar activities."
The bill is sponsored by Rep. Cindy Ryu (D - Shoreline) and has support from legislators across the aisle.
"It's not a commercial gym. It's a school," said Jordison Foster, after he took a class Tuesday with his daughters that blended Muay Thai and self defense. "I don't bring my kids here to come and get a workout. The actual fitness level that comes from it is secondary."
Foster, who brings four of his kids to the classes, estimated the new taxes are costing him between $70 and $100 extra a month.
"I have seen gyms, other gyms that I've trained at close for similar circumstances," he said, "and it's always unfortunate to see that happen."
The legislative session starts Monday, January 9.
Olympia also tried to ban martial arts weapons. What is up with Olympia?