Call to Action: Tax on Services

Tax on Services is back and more dangerous then ever!

On Wednesday night, Senator Hertzberg substantially amended his tax on services bill, SB 993 . What makes this latest version of tax on services so dangerous? It is potentially more palatable for legislators than previous incarnations because it attempts to create a “revenue neutral bill.” The revised bill would reduce state sales tax incrementally, ultimately resulting in a 2% reduction while imposing a 3% tax on the receipt of services purchased by qualified businesses.

While health care services, education services, child care, rent, interest, and services provided by certain unspecified small businesses would be exempted from the sales tax on services, EAs’ services would be taxed.

This bill will be heard in the Senate Governance & Finance Committee in four work days on Wednesday, 5/16. CSEA is urging ALL MEMBERS to contact the Committee members listed below before the Committee hearing with this simple message:

“Please oppose SB 993, the bill to tax services. This new tax will harm my business!”

The names of all Committee members and their office numbers are as follows:

Sen. McGuire (Chair) (Healdsburg)                                           (916) 651-4002
Sen. Nguyen (Vice Chair) (Garden Grove)                               (916) 651-4034
Sen. Beall (San Jose)                                                                    (916)651-4015
Sen. Hernandez (Los Angeles)                                                   (916) 651-4022
Sen. Hertzberg (Van Nuys)                                                         (916) 651-4018
Sen. Lara (Bell Gardens/LA)                                                        (916) 651-4033
Sen. Moorlach (Costa Mesa)                                                      (916) 651-4037