Should Arizona ban taxing services?
According to the Arizona Association of Realtors, the answer is yes. The group introduced a proposal to constitutionally prohibit a sales tax from being imposed on services, according to the Arizona Capitol Times.
The campaign, which launched Friday, March 9, requires at least 225,963 signatures by July 5 to put it on the November ballot. It is ran under the banner of Protect Arizona Taxpayers. Wes Gullett, campaign consultant, is quoted by the Arizona Capitol Times as saying that the initiative will be “supported by small businesses that are concerned about a potential huge tax burden.”
“We pay plenty of taxes without adding new taxes on buying a home, cutting your hair, getting your car fixed or even taking your pet to the veterinarian,” real estate agent Holly Mabery, who chairs the effort, was quoted as saying by the Arizona Capitol Times.
Although Arizona does not currently have a sales tax on services like family services and veterinary services, the group cites a failed legislative session measure to tax services as its genesis. About a decade ago, the Arizona Association of Realtors similarly fought a real estate transfer tax by convincing voters to ban it preemptively. The same logic has been applied to this issue.
“The Protect Arizona Taxpayers Act is right for Arizonans and right for Arizona businesses. We already pay our fair share of taxes and this would protect all of us from an additional burdensome tax,” Arizona Association of Realtors Executive Director Michelle Ahlmer is quoted as saying on the organization’s website.
The Arizona Department of Revenue estimates that if all services were taxed it would bring in another $5 billion a year.
“The Protect Arizona Taxpayers Act would provide critical protection to Arizona working families. Childcare is one of the most important and largest expenses parents face. A service tax would increase the cost of childcare adding an unfair burden on working families. This initiative will make it possible for parents across the state to rest easy knowing there is one less cost to worry about,” James Emch, CEO of Valley Child care and Learning Centers, is quoted as saying on the organization’s website.
