Tennis, racquetball, handball, squash, and pickleball

Generally, charges to participate in tennis, racquetball, handball, squash, and pickleball provided by an operator of an athletic or fitness facility (AFF) are subject to business and occupation (B&O) tax under the Retailing classification, and the AFF must collect sales tax.

Non-retail sales

Amounts charged to participate in tennis, racquetball, handball, squash, and pickleball, where the activity is not provided by the operator of an AFF, are subject to B&O tax under the Service and Other Activities classification.

Note: Tennis, racquetball, handball, squash, and pickleball, are defined as activities of an AFF. The department will presume that these facilities are primarily used for AFF-related activities. It is up to the business to show otherwise.