NFIB Opposes "Luxury" Services Tax

Posturing for a 2008 tax increase to cover an estimated $1.8 billion budget deficit, Gov. Jennifer Granholm has proposed a 6 percent luxury tax on selected services. While publicly identifying country club memberships and golf fees as examples of items to be taxed, the actual list under consideration includes such luxuries as legal and accounting services and home repair.

Here is a list of the proposed services to be taxed:

Attachment A for Line 16
List of Consumer Services Taxed in Governor’s Budget Recommendations, with 6 percent Rates
Revised March 30, 2007

Services	Estimated Revenue at 6 percent (millions)
Performing arts companies	$48.8
Sports teams and clubs	24.3
Racetracks	1.2
Other spectator sports	2.2
Movie tickets	32.5
Cable TV	52.1
Amusement parks and arcades	3.8
Golf courses-country clubs	30.2
Skiing	2.1
Marinas	10.7
Bowling centers	12.1
Repair and maintenance	73.9
Personal care services	54.9
Dry-cleaning and laundry	31.2
Other personal services	48.6
Exterminating and pest control	2.4
Janitorial services	6.2
Landscaping services	25.8
Carpet and upholstery cleaning	1.4
Other services, building/dwellings	1.6
Waste collection	17.1
Scenic transportation	0.7
Travel agencies	5.1
Tour operators	3.1
Other travel and reservation	7.9
Other amusement and recreation	8.5
Mini warehouse and self storage	4.7
Investigation	3.6
Security system services	5.0
Waste treatment and disposal	15.5
Remediation and other waste	3.0
Real estate offices and brokers	52.1
Real estate related activities	15.0
Veterinary care	23.5
Fitness and sports	31.2
Death care services	17.5
Legal	112.2
Accounting	25.9
Architectural engineering	10.8
Insurance agencies and brokerages	74.6
Investment advice	15.1
Construction	372.0
Total revenue all services	$1,290,000,000