NASHVILLE, Tenn. (WTVF) — A 10-percent tax on boutique gyms and fitness studios was eliminated Monday afternoon by Governor Bill Lee and the state legislature.
The Amusement Tax was a decades old tax on small gyms in Tennessee. Not affecting large gyms, the tax applies to individual memberships and can costs gyms and fitness enthusiasts hundreds of dollars.
Governor Lee signed a repeal of the tax into law in his first public signing of a bill.
"We all know that we are a state in this country that needs to improve the quality of the health of our citizens," said Governor Lee. "The vast majority of the cost of healthcare is associated with mostly preventable chronic disease. When people engage in healthy lifestyles, those diseases are reduced."
And it's not just Tennessee's citizens that the governor is thinking of, he also says this will allow small businesses to grow.
"Any time there's a business that has a lower tax, then they're able to invest in their companies, to provide better services, to lower their costs, any number of ways to make their business stronger. That creates more jobs and improves the economy of the state," he said.
The tax cut will take effect on July 1.