Legislation Expanding the Sales & Use Tax Base

SIFMA, as part of a coalition, provides comments to the California State Assembly opposing legislation that would expand the sales and use tax base to include 27 specified categories of services, AB 2540.  The coalition cautions that this new tax on services, used by Californians of all walks of life, would have adverse impacts on California’s working families, small businesses and their employees, and the state’s overall business climate. The bill’s exclusion of up to $10,000 from personal business income would not negate the economic damage that would be inflicted by a tax on services.