This one has been kicking around for years, and in these lean times, don’t be surprised if your state decides the time has come – impose a sales tax on services.
California (one of the leaders amongst states always on the lookout for new revenue sources) is looking at this: Assembly Bill 1963 was recently introduced. This bill would, on and after January 1, 2013, reduce the rate of state sales and use tax to 4% of the gross receipts from the retail sale of tangible personal property (a good thing), and would also, on and after January 1, 2013 impose a state sales and use tax on the privilege of selling services at retail and on the storage, use, or other consumption of services in the state at the rate of 4% of the sales price of the services.
Who knows where this particular bill will go? But given the currently prevailing fiscal fiasco in many state (and local) jurisdictions, don’t be surprised if you, sometime soon, find yourself paying sales tax to your barber, vet, accountant…..