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Creative politics: new tax on services is ready for creation

Written by maryp posted on Wednesday, May 14th, 2008

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A method of increasing revenue for the State, that will have an impact on your automotive repair bills, (as well as your plumber, electrician, hairdresser, etc.) is being seriously looked at now that they are (seriously), trying to bridge the ever growing budget gap. Last Thursday, they were discussing action to tax “services” and even movies! Now is the time that you want to contact your State Representative and State Senator if you disagree, (or agree) with these proposals. According to some in Sacramento, the idea is that as our State moves more and more to a “service economy”, that it only makes sense that “services be taxed”.

For some reason, the media is not giving this much attention. It’s possible that this could go “under the radar” until the final hour of budget deliberations. (..mmmm let’s see, that would avoid organized efforts of opposition). This has the potential to raise the cost of just about every daily transaction in our state. Your tax preparer, your medical services, sporting events, the list goes on and on …….It looks like everything is on the table, with the exception of food, (pun intended).

Businesses, such as ours, already collect the Sales Tax on the “parts only”, that we sell when we perform work on your BMW. Same situation if you get your wash machine repaired, house painted, etc., (you pay tax on the paint only). So, in our business, it really won’t make any difference to us. But, we think that it will make a difference to many of you and if so, now is the time to make your voice heard. This recommendation by our State Budget Analyst was posted in our blog, at the beginning of the year. We are running out of time!

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