Carruthers Testifies on Legislation to Support Non-Profits

COLUMBUS - Yesterday, State Representatives Sara Carruthers (R-Hamilton) gave sponsor testimony on House Bill 595, legislation to exempt non-profit gym and recreation memberships from sales tax. 

“Ohio is currently one of three states that tax non-profit fitness memberships,” said Carruthers. “Every day, YMCAs take on challenges that will shape our communities’ futures; challenges like the academic achievement gap, chronic disease and social isolation. Membership shouldn’t be barred due to increased expense from a sales tax.” 

Current law only exempts sales tax from such membership provided by state agencies and local governments. 

Under the bill, nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code would also be tax exempted. This would include organizations that have charitable, religious, education, or certain other purposes, that do not attempt to influence legislation or engage in political campaigns, and that do not distribute net earnings to private persons.

The exemption would apply on and after July 1, 2023. 

H.B. 595 now awaits further hearings in the Ohio House Ways and Means Committee.