Gym and Fitness Studio Resale Certificate Guide: Supplements, Merchandise, and Tax Rules
Gyms and fitness studios are service businesses at their core. Members pay for access to equipment, classes, and training. But many fitness businesses also sell products: protein shakes at the front desk, branded t-shirts, supplements, water bottles, wraps, and gear.
That retail product sales component is where a resale certificate applies. The supplements, merchandise, and retail products you stock for sale to members and walk-in customers are resale inventory. Buying them tax-free with a resale certificate reduces your cost and improves your margin on every item sold.
This guide covers what qualifies, what does not, and how gym memberships and services fit into the picture.
Gym
The Two Sides of a Fitness Business
The Service Side (No Resale Certificate Needed)
Gym memberships, personal training sessions, group fitness classes, and facility access are services. You are not selling a tangible product. A resale certificate does not apply to the purchase of gym equipment you use in your facility, cleaning supplies, towels for member use, or any other supplies consumed in delivering your service.
The Retail Side (Resale Certificate Applies)
Protein bars at the front desk, branded apparel, supplement shakes, water bottles, and any other tangible product you sell to customers are retail products. A resale certificate lets you buy these items wholesale without paying sales tax, then collect sales tax from the customer at the point of sale.
Apply for Your Resale Certificate
What You Can Buy Tax-Free
Tax-Exempt Purchases (Resale Items)
Products you stock for retail sale to members and customers:
- Supplements (protein powder, pre-workout, BCAAs, creatine, vitamins)
- Protein bars and energy bars sold individually or by the box
- Ready-to-drink protein shakes and smoothie ingredients (if you sell finished shakes, see below)
- Branded apparel (t-shirts, tank tops, hoodies, hats, shorts with your gym logo)
- Water bottles and shaker cups sold at retail
- Gym bags and backpacks sold at retail
- Lifting accessories sold at retail (wrist wraps, knee sleeves, lifting belts, chalk)
- Yoga mats and blocks sold at retail (not studio mats used by the facility)
- Resistance bands, jump ropes, and small equipment sold at retail
- Smoothie and juice bar ingredients (if you operate a retail smoothie bar and sell the drinks)
- Gift cards (not taxable at purchase)
- Retail packaging (bags, cups, bottles that transfer to the customer)
What You CANNOT Buy Tax-Free
Items for facility operations and service delivery:
| Item | Why It Is Taxable |
|---|---|
| Gym equipment (treadmills, squat racks, dumbbells) | Business equipment |
| Flooring, mirrors, and build-out materials | Facility improvements |
| Studio sound systems and TVs | Business equipment |
| Cleaning supplies and sanitizing stations | Consumed, not resold |
| Towels provided to members for use during workouts | Business amenity, not sold |
| Yoga mats provided for class use | Facility equipment |
| Water dispensers and cups for free water | Business amenity |
| Software (scheduling, billing, member management) | Business use |
| Office supplies and front desk equipment | Business use |
| Uniforms for staff | Business use |
Smoothie Bar: Resale or Prepared Food?
If your gym operates a smoothie or juice bar, the ingredients (fruit, protein powder, milk, ice) you purchase to make smoothies for sale are resale items. You buy them to sell to customers as a finished drink.
However, smoothie and juice bar sales may fall under prepared food tax rules in your state. Most states tax prepared food (food prepared for immediate consumption), which means your smoothies are likely taxable to the customer. Your ingredient purchases are still exempt with a resale certificate, but check your state's prepared food rules for how to handle the customer-facing tax.
Are Gym Memberships Taxable?
This is a separate question from the resale certificate, but it directly affects your overall tax obligations. Whether gym memberships and fitness services are subject to sales tax depends on your state.
| State | Gym Memberships Taxable? |
|---|---|
| California | Not taxable |
| Texas | Taxable (amusement services) |
| New York | Taxable |
| Florida | Not taxable |
| Connecticut | Taxable |
| New Jersey | Taxable |
| Ohio | Not taxable |
| Pennsylvania | Not taxable |
| Washington | Taxable (physical fitness services) |
If your state taxes gym memberships, you need to collect and remit that tax on membership dues and training fees. This obligation exists independently of any resale certificate. You need a sales tax registration (which you would already have if you sell retail products).
Dollar Savings for Fitness Businesses
The savings depend entirely on how much retail product you sell. A gym with no retail sales gets zero benefit from a resale certificate for supply purchases. A gym with an active supplement and merchandise program can save meaningfully.
| Business Type | Monthly Retail Product Purchases | Annual Tax Savings (7%) |
|---|---|---|
| Small studio with no retail sales | $0 | $0 |
| Gym with small supplement shelf | $500 | $420 |
| Gym with branded merchandise program | $1,500 | $1,260 |
| Gym with supplement wall and smoothie bar | $3,000 | $2,520 |
| Large gym with full retail operation | $8,000 | $6,720 |
A gym spending $3,000 per month on supplements, merchandise, and smoothie ingredients saves $2,520 per year. Not life-changing, but it covers a few months of supplement inventory.
Building Your Retail Revenue Stream
Many fitness businesses underutilize retail sales. Here is why it matters beyond just the resale certificate:
Supplements and protein bars have typical markups of 40% to 60%. If you buy a protein bar for $1.50 and sell it for $2.50, that is a $1.00 gross profit per bar with minimal labor. Selling 20 bars a day generates $600/month in gross profit.
Branded merchandise serves double duty as revenue and marketing. A $30 hoodie with your gym logo costs you $12 to $15 wholesale. You profit on the sale, and the customer advertises your gym when they wear it.
Smoothie bar revenue can generate $500 to $3,000+ per month for a busy gym with a well-run smoothie operation.
All of these wholesale purchases are tax-free with your resale certificate.
State-Specific Notes
California
California does not tax gym memberships or personal training. Retail product sales (supplements, merchandise) are taxable. You need a seller's permit to buy retail inventory tax-free and collect sales tax on product sales. Smoothie bar sales of prepared food are taxable.
Texas
Texas taxes "amusement services," which includes gym memberships and fitness classes. You must collect sales tax on membership fees. Retail product sales are also taxable. Your resale certificate (Form 01-339) covers wholesale purchases of retail inventory.
New York
New York taxes gym memberships and fitness services. Retail product sales are also taxable. You need Form ST-120 for wholesale purchases of resale inventory. Collect sales tax on both memberships and product sales.
Florida
Florida does not tax gym memberships or fitness services. Retail product sales are taxable. You need a sales tax registration and can use your resale certificate for wholesale inventory purchases.
Connecticut
Connecticut taxes gym memberships as a taxable service. Retail product sales are also taxable. Wholesale inventory purchases are exempt with a resale certificate.
Common Mistakes Gym Owners Make
Using the Resale Certificate for Facility Equipment
A new set of dumbbells, a treadmill, or a squat rack is not resale inventory. It is business equipment. Do not present your resale certificate when buying gym equipment. Pay the sales tax.
Not Separating Service and Retail Revenue
Your accounting needs to distinguish between membership/training revenue and retail product sales. These may have different tax treatments in your state, and during an audit, you need to show that your resale certificate purchases correspond to actual retail sales.
Giving Away Products Without Tracking
Free protein shake for new members? Branded shirt as a sign-up bonus? When you give away retail products, they are no longer resale items. They become promotional expenses. Track giveaways separately. For the tax, you technically owe use tax on the cost of items you purchase tax-free but do not resell.
Ignoring Online Sales
If you sell branded merchandise or supplements through your website and ship to other states, you may have sales tax nexus obligations. See our economic nexus guide for threshold information.
How to Get Started
Step 1: Evaluate Your Retail Operation
Assess what retail products you sell (or want to sell). If you have no retail sales, the resale certificate will not reduce your supply costs. If you sell supplements, merchandise, or run a smoothie bar, proceed.
Step 2: Apply for Your Resale Certificate
Apply through your state's tax authority or use our application service.
Step 3: Set Up Wholesale Accounts
Provide your resale certificate to supplement distributors (Europa Sports, Optimum Nutrition direct, supplement wholesale companies), merchandise suppliers (print-on-demand or blank apparel wholesalers), and food distributors.
Step 4: Track Retail Inventory Separately
Maintain clear accounting that separates retail product purchases (tax-exempt) from facility supplies and equipment (taxable). This protects you in an audit.
Step 5: Collect Sales Tax on All Retail Sales
Charge the correct sales tax on product sales at the counter, smoothie bar, and online store. File and remit on schedule.
Apply for Your Resale Certificate