AN UPDATE ON HFA’S EFFORTS ACROSS THE GLOBE

How HFA Stopped Virginia’s Fitness Tax: A Step-By-Step Guide

From the moment the bills surfaced to the day they were pulled from the docket, here is the inside story of one of HFA’s most recent state-level advocacy victories.

BY JIM SCHMALTZ

The old adage that witnessing legislators craft a law is like watching sausage being made remains unchallenged. But without engagement, legislation injurious to the fitness industry can do long-term damage.

HFA’s advocacy mission is committed to stopping harmful bills and supporting legislation that promotes the industry—and the HFA advocacy team has an impressive record in state houses. In 2025, HFA met with 104 policymakers and secured 56 wins in 22 state legislatures. That’s a lot of sausage (made or unmade).

To give HFA members insight into what goes into one of these legislative victories, HFB presents a step-by-step replay of a recent victory in the Virginia legislature that saw two tax bills tabled for the 2026 legislative year on February 10.

Craytor

Regnante

Step 1. The Threat Emerges

It started with two bills quietly introduced in Virginia’s House Finance Committee. One was sponsored by House Finance Chair Vivian E. Watts; the other by Delegate Richard C. Sullivan. Together, they proposed adding a 5.3% to 7% sales tax on a broad range of services that had long been exempt—including fitness facility memberships, personal training, nutritional counseling, and digital fitness offerings.

The bills were part of a larger package targeting roughly 15 small-business sectors, from landscaping to home repair to vehicle maintenance, designed to generate new revenue for transportation and education programs.

For the fitness industry, the stakes were clear. Industry estimates put the potential new costs to Virginia consumers at between $100 million and $140 million per year, with many of these increases absorbed by members of HFA fitness facilities. This presented a serious threat to the viability of many operators, particularly smaller businesses and startups.

Step 2. Rallying Local Stakeholders

Chris Craytor, CEO of acac Fitness & Wellness and Welld Health, both Virginia-based brands, spotted the proposed tax on fitness club dues and immediately contacted HFA.

A former HFA board chair (2022 to 2024), Craytor was part of the team that bolstered HFA’s advocacy mission under President and CEO Liz Clark. He remains active in supporting HFA’s advocacy mission and is the recipient of this year’s Jim Worthington Advocate of the Year award.

“If these things start getting momentum, they can be tough to stop,” Craytor says. “You have to act right away.”

At the same time, Charles Regnante, HFA’s manager of government affairs, had already picked up early intelligence on the bills and was preparing to act. He and Craytor were in contact almost immediately, and within days, HFA began mobilizing.

“We have studies that show people who attend fitness facilities are highly sensitive to price. So a price increase of 5.3% is going to have a drastic effect on the people who are able to afford that membership.” • Charles Regnante, during testimony to a Virginia state committee

Step 3. The Outreach—Three Days in Richmond

Regnante moved fast. He made three day trips to Virginia’s capital on consecutive days. On each trip, he hand-delivered a concise one-page brief to nearly every member of both the House and Senate Finance Committees, making sure lawmakers had a clear summary of what the tax would mean for fitness businesses and the people they serve.

Getting in front of Chair Watts herself proved more difficult. She didn’t count on Regnante waiting outside her office for the better part of two days—through six separate scheduling cancellations—before she finally met with him on the third day.

The conversation was candid and productive, but Regnante returned from Richmond knowing the bills had real momentum and the state’s new leadership was inclined to support them. HFA had work to do.

Step 4. Building the Coalition

Back from Richmond, Regnante and Mike Goscinski, HFA chief of staff, convened a call with a group of Virginia’s fitness operators that represented a broad cross-section of the industry: Planet Fitness, Fitness International, Life Time, One Life, Solidcore, US Fitness Group, VIDA Fitness, and others. Craytor was among those on the call.

The decision was made to pool resources and hire a lobbyist. With a local professional advocate now engaged, the campaign was operating on two tracks simultaneously: direct legislative outreach led by HFA staff, and behind-the-scenes lobbying that targeted key figures in the state’s power structure.

Craytor made a commitment to testify and reach out to lawmakers in his state.

Step 5. Making the Case

As the subcommittee hearing approached, HFA drafted detailed written testimony that laid out the industry’s core arguments at length: Fitness is preventive healthcare; it reduces long-term Medicaid and hospital costs for the state; and its consumers are far more price-sensitive than lawmakers appeared to assume.

The written testimony made HFA’s arguments part of the official record, an important development for future battles against similar legislation.

Regnante and Craytor both testified at the hearing. Regnante made an economic argument that cut to the heart of the small-business impact.

“If you take 5% away from a small independent gym or studio in Virginia that’s operating on an 11% margin, then they have to cut 50% of the staff,” he says. “It’s a very different impact.”

Regnante also pushed back hard against the notion that gym members are immune to price increases.

“We have studies that show people who attend fitness facilities are highly sensitive to price,” he testified. “So a price increase of 5.3% is going to have a drastic effect on the people who are able to afford that membership.”

Craytor offered a club operator’s perspective during his testimony, which was limited to one-minute segments.

“We’ve got to be ready and continue to advocate for the industry throughout the year. This isn’t just a one-and-done situation.” • Chris Craytor

Step 6. The Effort Pays Off

After Regnante and Craytor completed their subcommittee testimony, the bills were officially removed from consideration for the 2026 legislative session. The HFA-backed lobbyist played an important role in moving the needle by securing sit-down meetings with Virginia’s Speaker of the House Don Scott as well as with bill co-sponsor Sullivan.

The fitness tax was dead—for now.

The Virginia case proves that HFA’s multi-pronged advocacy strategy—using professional lobbyists, engaging directly with lawmakers, and delivering testimony—is an effective approach, Craytor says. But he urges HFA members to become more involved.

“It’s important that 10 or 20 of us show up and make legislators know that we’re a strong industry,” he says. “Committee hearings are open to the public, so anyone can sign up.”

It’s worth it, says Craytor. All engagement is useful on some level.

“Getting face-to-face meetings with bill sponsors rarely results in immediate reversal, but it can help us as an industry better understand their motivation,” he says. “And it helps us craft more targeted arguments for other committee members who may not yet be committed.”

Step 7. Staying Ready for What Comes Next

Both Regnante and Craytor were measured in how they described the outcome. A postponement is not a repeal. Similar legislative efforts to tax fitness services are underway in other states, indicating a broader national trend, Regnante says. “These bills are like zombies,” Craytor says. “They’re hard to kill. We've got to be ready and continue to advocate for the industry throughout the year. This isn't just a one-and-done situation.” HFA has committed to maintaining active engagement with Virginia policymakers throughout the year and is tracking similar proposals taking shape in other states where budget pressures are pushing legislators toward taxes on small business. HFA will keep members informed and is prepared to mobilize again when the time comes. Committee hearings are open to the public. Signing up to testify is straightforward. And when HFA puts out a call for action, the ask is simple: Answer it. The Virginia fight showed what a well-organized, rapid-response campaign can accomplish. It also demonstrated how powerful that campaign becomes when more voices show up to be heard.

To get involved, start by downloading HFAs State of the States: US Fitness Policy Update & Compliance Guide, a comprehensive, state-by-state analysis of the laws, regulations, and legislative trends affecting fitness facilities across all 50 states and the District of Columbia.

To see how the Virginia case applies to global advocacy, see Global Voices in this issue.

Health & Fitness Business is a publication of

Health & Fitness Business (HFB) is the leading health and fitness industry publication. Published monthly by the Health & Fitness Association (HFA) and distributed free to the industry, HFB offers analysis of the opportunities, challenges, issues, and news that impact the industry.

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