Peloton sued over sales tax for membership fees

Peloton has been hit with yet another lawsuit. Reuters reports that a class action lawsuit has been filed regarding how Peloton charges sales tax in the states of New York, Virginia and Massachusetts.

At issue is the fact that until January 1st, 2021, Peloton was charging sales tax on the cost of their membership. This applied to both the Digital membership, costing $12.99, as well as the All-Access membership, costing $39.99. The lawsuit alleges that these should have been treated as “as tax-exempt “digital goods” in the three states.”

According to Reuters:

They said Peloton has refused to reimburse them for the 6.3% or 8.9% "sales tax" it had collected before Jan. 1, when it changed its taxation practices. Millions of dollars nationwide may have been collected improperly, they said.

The lawsuit was filed in the Southern District of New York, and is Skillern et al v Peloton Interactive Inc.

In recent months, Peloton has seen numerous lawsuits filed against them over the safety of their original Peloton Tread+. Just this week Peloton took the first step towards a CSPC approved fix.

You can read the original report from Reuters here.

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Chris Lewis
Chris Lewis is the creator & founder of Pelo Buddy. He purchased his Peloton in 2018, and uses all the different devices: Peloton Bike, Tread, Row, and Guide. He has been involved in the fitness industry for more than a decade - previously co-founding the websites Mud Run Guide & Ninja Guide. You can find him on the leaderboard at #PeloBuddy.

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