Retail Sales Tax Imposed on Martial Arts Businesses Across the S - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Retail Sales Tax Imposed on Martial Arts Businesses Across the State

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Roach told us he does not have the specific figure calculated out of how much his business would be affected. Roach told us he does not have the specific figure calculated out of how much his business would be affected.

RICHLAND, WA- If your kids do martial arts you could see prices go up once January 1st, 2016 rolls around.

NBC Right Now spoke with one local taekwondo instructor who says he is worried about a new sales tax he just found out about. Erik Roach just expanded his small business to a new location so he could meet the demand of students walking in the door.

Within House Bill 1550 lies some changes for those who own boxing, kickboxing, wrestling, martial arts and mixed martial arts businesses. "I did a lot of research into the tax structure of running a martial arts school, I did my homework before deciding to open up this business," said Roach.

As the new year approaches, so does a new sales tax, categorizing these types of businesses as "retail" instead of "services". 

"Just to kind of see it change suddenly, kind of takes what we know and how we do business as martial arts school owners and flips it upside down on us," explained Roach. With 130 students filling his classroom, there also lingers a decision to make. 

"So now we are forced in a way, starting at the beginning of the year, to start imposing a retail sales tax on our customers. Which, for some martial arts school owners that gives them a few options, they could either absorb that tax, which would be a major cost to them, or it would mean higher tuition prices for their students and nobody really wants to do that, " said Roach.

Representative Carylyle told NBC affiliate KING 5 in Seattle, "We are a sales tax state, the public embraces that." 

"I would not be surprised if some martial arts schools in the state have to close their doors just because of change in tax structure," said Roach. Within hours of any special notice, a Change.org petition had already gathered over 1,800 signatures, "to see if there is any way we can repeal it or make some kind of change to it," said Roach.

Roach told us he does not have the specific figure calculated out of how much his business would be affected. 

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