Insights

5 Ways You May be Paying More in Sales Tax for Your New Year's Resolution

New year, new resolutions.

According to a recent article, "One might expect New Year’s resolutions to be tax-preferred or at least tax-neutral...this is rarely the case."

Here is a list of 5 ways you may be paying more in sales tax for your New Year's resolution:

  1. Joining a gym - Those who pursue a resolution by joining a gym will find that it comes with a sales tax cost in many states. "Washington State has expanded its definition of taxable physical fitness services, effective January 1, 2016."
  2.  Eating healthier - "Legislation cited health concerns in favor of soft drink excise taxes in Illinois, Vermont, and Connecticut. Additionally, many states tax soft drinks under their sales and use tax while exempting other foods. In July 2015, Vermont joined the states levying sales tax on soft drinks."
  3. Watching less television - "Rather than leaning on willpower alone, some people will go so far as to cancel their TV service. In some states, the tax implications of doing so will depend on whether the canceled service is satellite service or cable service. A handful of states impose sales tax on satellite TV service while exempting cable TV service."
  4. Reading - "Those who choose to fulfill this resolution by purchasing e-books will find that in many states, unlike paperbacks and hardcovers, are non-taxable.
  5. Buying local - "Purchases from local brick-and-mortar retailers replace purchases from online retailers that do not collect tax".

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