D.C. yogis will have to shell out a few more dollars to practice their downward dog.
The D.C. Council voted 9-4 to keep the yoga tax in its $10.6 billion budget on Tuesday despite an amendment to eliminate the tax.
Councilmember David Catania, an independent who's running for mayor, is among those who opposed the nearly 6 percent sales tax, pledging to appeal the tax if he is elected mayor.
As Mayor I will submit an FY16 budget that will repeal the Wellness Tax. #DontTaxWellness — David Catania (@DavidCataniaDC) June 24, 2014
Mayor Vincent Gray was also against the new tax. But plenty of councilmembers supported the tax.
CoMember Cheh says opposition to "yoga tax" is "orchestrated" by affected business owners. "the joke is on us" if council repeals it. — Tom Sherwood (@tomsherwood) June 24, 2014
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In their final report, the D.C. Tax Revision Commission said expanding the sales tax to eight services in the District could generate over $28 million in its first year. Of those eight recommendations, the Council chose six.
The following services will be subject to the new tax starting Jan. 1, 2015:
- Health clubs
- Water delivery services
- Storage lockers
- Carpet cleaning
- Car washes
- Bowling and billiards
The budget also includes a substantial income tax cut, among other changes to the District's tax code. Council Chairman Phil Mendelson has defended the plan, saying the overall tax burden for District of Columbia residents will decrease.
