An Update on Proposed Sales Tax on Services
by Mark Christian, Hon. AIACC.
We informed you back in January of another attempt to impose a sales tax on services, including architectural services. That bill, SB 8, has not been voted on in the Legislature, and most likely never will come up for a vote.
The reason is the votes are not there to pass the bill. SB 8, as a tax measure, needs the support of 2/3 of both houses in the Legislature to be sent to the Governor, and its support among legislators is short of that number in both houses.
The author of SB 8, State Senator Bob Hertzberg (D – Van Nuys), knows this. His stated objective is place a sales tax on services measure on the state ballot, probably in 2016, and we believe he is actively working to accomplish this by organizing his political team and by seeking money to run a state ballot campaign.
Those AIA Members who were around in 1998 certainly remember the fight against Proposition 224 and the effort of the AIACC and the Membership to defeat this harmful initiative. Certainly, the AIACC and the Membership would respond to a sales tax on services initiative with the same urgency they responded to Proposition 224.
The AIACC remains an active member of the coalition against SB 8 and the placing of a sales tax on services initiative on the 2016 ballot.
Here are some articles on SB 8 for your information:
- Is a Do-Over on the Horizon for California’s Sales Tax? (KQED)
- Governor on professional services tax: ‘I don’t see the path forward’ (Sacramento Business Journal)
Please contact our Director of Legislative Affairs, Mark Christian, Hon. AIACC, at firstname.lastname@example.org or 916-642-1708, if you have any questions.
Mark Christian, Hon. AIACC, is the Director of Legislative Affairs for the AIA California Council, a position he has held since 1999. In this position, Mark is responsible for monitoring the CA State Legislature, identifying bills of interest to the profession, developing and implementing strategies for the positive outcome of legislation of interest to the profession, and representing the profession before the legislature. Prior to joining the AIACC, Mark worked for the State Assembly for nine years in several capacities, including as a policy consultant on several significant environmental laws. He holds a B.A. in Economics from the California State University, Sacramento.