Sales tax on services may be back. Your swift action may soon be needed. I’m quoting a couple of paragraphs from an email that I just now received addressing the issue; this was from Wednesday afternoon. “They” is the Senate Finance Committee while JFO is the Joint Fiscal Office.
“They've (JFO) dusted off their list of potential revenue options for the committee, which includes the entire list of professional services not subject to the 6% sales tax (accounting included at NAICS code 5412 - estimated to raise $6.0 million) as well as the bank franchise tax, corporate income tax, personal income tax, and sales and use tax. It was a brief overview for the committee.
The Committee has been tasked at looking at potential revenue options to raise at least $24 million - without it all falling on the personal income tax surcharge. I say at least, cause there is concern that the April numbers will be lower than expected. The Committee has also been tasked with moving on something by next Friday (not sure how realistic that is) to allow for 10 days of Committee of Conferences before adjournment. As noted, the House's misc. tax bill has yet to arrive in the Senate so Finance will not have a lot of time when it decides to move on something. Senate Finance will likely amend the misc. tax with the option they ultimately decide upon. Again, nothing has been decided, the attached are just options that JFO can think of at the moment for potential new revenue.”
Legal services tops the revenue list at $14.2 million at a tax of 6%. You have to recognize that this is an easy target when the state is so far behind in revenues. Stay tuned.
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