VICTORY! New York Health Club Dues Tax Defeated

New York Governor David Paterson announced just hours ago that he has come to an agreement with legislative leaders to not extend the sales tax to health club membership dues and services. This is a major victory for healthy lifestyles in New York and the health club industry.

Over the last nine weeks, 2,441 fitness professionals and health club members wrote 7,902 messages to legislators in Albany. Many fitness professionals and club companies met personally with legislators to discuss the impact that the tax would have on their members and their businesses. The voices of our advocates for healthy lifestyles were heard loud and clear in Albany!

“This is an incredible victory, especially considering the massive deficit facing New York,“ said Joe Moore, IHRSA President and CEO. “It is a testament to the power of working together. With IHRSA collaborating with concerned fitness professionals, our lobbyist, and the people of New York, we were able to highlight the inconsistent messaging of an "obesity" tax on sodas and a "healthy lifestyle tax" on preventative exercise, and stop this proposal in its tracks.”

Paterson came to an agreement with Senate Majority Leader Malcolm Smith and Assembly Speaker Sheldon Silver to eliminate $1.3 billion in tax increases included in the proposed 2009-10 Executive Budget. In addition to health club dues and services, clothing under $110, sugared drinks, digital downloads, cable and satellite television, manufacturers’ coupons, haircuts, manicures, concerts, movies, live theatre, bowling, golf, skiing and others were eliminated.

“The proposed tax increases we are eliminating today were only put forward as a last resort when the deficit ballooned to an unprecedented level,” said Paterson in a statement. “Now that enhanced federal funding is available, our highest priority must be to provide targeted relief to those who need it most during this economic crisis – average New Yorkers struggling to make ends meet.”

-Breanne McGahey

Paterson’s State of the State Hypocrisy

Some casual observers of New York politics may be surprised to hear that Governor David Paterson would tax health clubs, especially given his high profile comments in recent weeks about childhood obesity and the need to get New York healthier. I commend any effort by Paterson that recognizes that the growing waistlines and children and adults is a serious public health issue. He, like the other politicians referenced in Mr. Richard’s post below, are increasing awareness about wellness.

Here is an excerpt from his State of the State address [full text available http://ny.gov/governor/press/press_0107091.html].

“While we have made some progress, we still incentivize the wrong care in the wrong setting at the wrong price. Where we are overpaying for inpatient or institutional care, we must shift funding to primary, preventive and community-based care. Preventing illness is a good investment. It saves taxpayer money, improves patient care, and unburdens our economy.

This is why we should aggressively address the greatest threat to our children’s health today, the epidemic of obesity. One out of every four New Yorkers under 18 years of age is obese.

Childhood obesity causes serious health problems including Type 2 diabetes, high blood pressure and high cholesterol. The American Heart Association reports that obese children have blood vessels that look like they belong to 45 year olds. These children have much greater risks of having heart attacks, suffering strokes, and losing limbs.

Obesity not only blights our children’s futures — it creates a significant economic burden on our health care spending. New York spends $6.1 billion each year to treat obesity-related health problems— the second-highest level of spending in the nation.”

He continues on to say: “By protecting our children from obesity, we protect their health and our health care system. That is why this matters.“

Bravo Governor. Well said. Now the praise stops here.

I cannot wrap my head around hearing this rhetoric then reading his proposed Executive Budget that calls for a tax on health club dues. It counters everything he said in his own speech about obesity-related health problems and our health care system. While there is clearly a massive budget deficit that must be resolved, it cannot be done on the backs of New Yorkers who are taking initiative to lead healthy lifestyles by exercising at a fitness facility. Sure, there are plenty of other services being targeted but health clubs should not be included among them.

It’s like taxing someone’s annual check-up at their physicians. You don’t discourage healthy habits, especially those that create significant long-term cost savings. Paterson himself acknowledges that taxing a behavior can discourage it. That is exactly why he included his so-called “obesity tax” on sugary, non-diet sodas in his budget. [Check out page 28 - http://publications.budget.state.ny.us/eBudget0910/2009-10ExecutiveBudgetPresentation.pdf]

The hypocrisy is off the charts. As people that believe in healthy lifestyles, we need to speak out loudly and together against this attack on healthy lifestyles. Today IHRSA launched its first Grassroots Initiative campaign of 2009. We sent out a call to action for fitness professionals across the Empire State to voice their opposition. This needs to be stopped.

If you don’t live in New York, watch out. Similar legislation is coming down the pike in a number of other states…

- Breanne McGahey