Topeka ? Pumping iron got weighted down Tuesday in Kansas tax law.

Under state law, Kansans who join for-profit health clubs pay sales tax on their membership dues. But at not-for-profits, such as the YMCA, no sales tax is assessed on membership dues.

“The Kansas Legislature has inadvertently created a situation where Kansans that receive the same services are treated differently,” said George McCrary, owner of Baldwin Athletic Club.

McCrary and other members of the Kansas Health and Fitness Assn. asked an interim tax committee to recommend changing the law to either make not-for-profits charge the sales tax, which would generate $2 million, or exempt both groups – for-profits and not-for-profits – from assessing the sales tax.

Karleigh Venneman, the owner of a health club in Pittsburg, said not-for-profit health clubs have a competitive advantage when competing directly against for-profits. Other not-for-profits, such as the Red Cross and Big Brothers and Big Sisters, deserve tax exemptions because they are providing services not replicated in the private sector, she said.

But Pete Doll, president and chief executive officer of the YMCA of Topeka, said the organization should continue to receive a sales tax exemption on its members’ dues because of its charitable mission.

“The charitable mission of the YMCA is embodied in the principle of promoting healthy spirit, mind, and body to build strong kids, strong families, and strong communities,” Doll said.

Lisa Davison, 21, a junior at Kansas University from Lawrence, works out at the Lawrence Athletic Club, where members are charged sales tax on memberships. Some for-profit athletic clubs are asking state lawmakers either to charge not-for-profit clubs sales taxes, or to eliminate such taxes on all clubs. A committee heard the request Tuesday.

Unlike for-profits, YMCAs are led by volunteers, are created to meet community needs and turn no one away because of an inability to pay, he said. The organization provides child care, membership scholarships, pre-school and numerous other programs.

And, he noted, YMCAs do pay sales taxes on most purchases, payroll taxes and licensing fees.

The committee took no action on the issue.

Rep. Kenny Wilk, R-Lansing, vice chairman of the joint tax committee, said the panel was trying to gather information on all the tax exemptions in existence.

He doubted the Legislature would remove the sales tax exemption on membership dues for non-profits.

“No one is questioning their good work,” he said.

Wilk said he didn’t know if legislation that would exempt private health clubs from sales taxes on member dues would be approved by the full Legislature.

In Lawrence, Rick Sells, owner of Lawrence Athletic Club, said that he was fortunate that he didn’t have to compete directly with a YMCA or other such operation.

Then again, he said, going up against city-run programs and a student recreation center at Kansas University already makes things challenging enough.

“For a guy like me – who’s invested $4 million in the last 21 years – (the difference in sales tax) can just put me out of business, because I can’t compete,” Sells said.

Eliminating the sales tax on private memberships would shave $2 or $3 off the typical monthly memberships at private clubs, Sells said, which might be enough to convince more people to sign up and work to improve their health.

“Then the state can save in health care costs,” he said.