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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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