California – Proposed Tax on Services Estimated At $122.6 Billion

Salt Report 3614 – The California BOE’s Research and Statistics Section analyzed 15 categories of service industries, including health care, agriculture, construction, real estate, finance, transportation and warehousing, and various professional services, such as attorneys, accountants, hairstylists, car washes, and auto and shoe repair.  The estimated state portion of the tax would be $60.9 billion with $61.7 billion for city, county and other local government entities.  The estimate assumes an 8.42% sales and use tax rate.

For comparison, last fiscal year (2013-2014) the BOE collected $48.0 billion in sales and use taxes.

Further Information:

News Release 35-15-G April 14, 2015

ESTIMATE OF POTENTIAL REVENUE TO BE DERIVED FROM TAXATION OF CURRENTLY NON-TAXABLE SERVICES