Physical Fitness Centers

78.1. Physical fitness centers, gymnasiums, and other such programs are engaged in the business of rendering personal services exempt from tax only if they meet all of the requirements set forth in Section 8.1.2.3 of these regulations.

78.2. Even if physical fitness programs are exempt as personal services, they are exempt only for the sale of the personal services. Sales of any other services which are not personal services, as well as sales of any tangible personal property such as sweatshirts, lotions, cassettes or any other items, are taxable.

78.3. Persons who are engaged in providing personal services are taxable on their purchases for use in the personal service portion of their business. Except for items purchased for resale, purchases for use in any portion of the business related to selling taxable services or tangible personal property are also taxable. An exemption certificate may be issued for items purchased for resale.