Peloton Is Sued for Improperly Charging Sales Tax

Peloton Is Sued for Improperly Charging Sales Tax
A Peloton exercise bike is seen after the ringing of the opening bell for the company's IPO at the Nasdaq Market site in New York City, New York, United States, on Sept. 26, 2019. Shannon Stapleton/Reuters
Reuters
Updated:

NEW YORK—Peloton Interactive Inc. subscribers have filed a proposed class action lawsuit accusing the maker of at-home stationary bicycles of improperly charging sales tax on memberships in New York, Virginia, and Massachusetts.

In a complaint filed on Thursday night in federal court in Manhattan, Brandon Skillern and Ryan Corken said Peloton should have treated its $39-a-month “All Access” and $12.99-a-month digital memberships as tax-exempt “digital goods” in the three states.