- Associated Press - Tuesday, February 19, 2019

NASHVILLE, Tenn. (AP) - Gov. Bill Lee says his upcoming budget proposal will include repealing the $10 million amusement tax on gym memberships.

Lee announced Tuesday repealing the tax is important to reduce burdens on small businesses throughout Tennessee.

Advocates of repealing the tax - which include owners of gyms, fitness centers and health clubs - argue the 10-percent tax places a burden on small business because larger facilities run by national chains are excluded from the amusement tax.

Lee says the repeal would encourage healthy habits, but it’s unknown if the repeal will lead to lower gym costs.

Gyms and other health clubs have been paying the amusement tax since the mid-1980s.

Lee is scheduled to unveil his full budget proposal for the upcoming fiscal year on March 4.

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