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Sales Tax on Services?

November 16th, 2007 by flanews

A panel of leaders studying Florida’s tax system agreed to review certain sales tax exemptions.  The Taxation and Budget Reform Commission also wants Florida to be among states that have joined forces to support the taxation of goods sold over the Internet.  Former Senate President John McKay, now a Bradenton real estate broker, has proposed a constitutional amendment that would require lawmakers to choose and repeal exemptions and exclusions from sales taxes.  They would then use the money to replace local property taxes that fund public schools.

“Courier services or services incurred are exempt from taxation,” McKay said.  “And I thought, I use a courier service all the time to get from Bradenton to Sarasota and it saves me gas, and it saves me the time or employee time.  And if I had to pay 60 cents on 10 dollars to take something down to Sarasota, big deal.  I’m still saving employee time and gas money.  So there are lots of services in there that perhaps should be taxed.”

McKay’s proposal needs support from two-thirds of the 25 commission members to reach the November 2008 ballot.  Then 60 percent of voters would have to approve it.

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