Jarrell Cook

Bill creating a sales tax on services to be heard in committee

By Jarrell Cook, Policy Director, Government Relations

Capitol Update, May 11, 2018 Share this on FacebookTweet thisEmail this to a friend

The Senate Governance and Finance Committee will hear SB 993 (Hertzberg, D-Van Nuys) on May 16 at 9:30 am. The bill would impose a three percent tax on each of the services manufacturers use to conduct business – including accounting, advertising, architecture, employee procurement, legal, telecommunications, data processing and management, supplying, shipping, mixed goods contracts, consulting, and other technical services necessary to operate a successful company.  

If passed, SB 993 would significantly increase the costs of doing business in California, and, ultimately, the cost of goods California manufacturers produce. Layering a price increase at multiple points in the production process would detrimentally bloat the tax burden on California manufacturers and create significant economic distortions. 

CMTA and a coalition of business, industry, and taxpayer advocates are working together to make the negative impact of SB 993 clear to lawmakers.

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