What Proposition 126 will mean to your service bill

I’ve seen a lot of confusing recommendations thrown around recently concerning Proposition 126, the proposal that will prevent the legislature from taxing service businesses.

Here’s our take on Prop 126 — straightforward and uncomplicated.

Right now, neither the counties nor the state tax a wide variety of services — health care, pet care, accounting, legal representation, real estate services, and the like.

This list includes our three major offerings: Internet service, computer repair, and technical assistance and consulting. 

Right now, you don’t pay tax on these. That makes your life less expensive, and it makes ours much less complicated. We’d like that to remain unchanged, and we hope you do as well.

If Proposition 126 fails and we are forced to collect tax on these services, our prices will not only have to reflect the new tax, but the administrative costs to us of collecting, remitting, and accounting for this new tax.

Proposition 126 is one of those confusing propositions where you have to vote yes to prevent a new tax. Please keep this in mind when you vote. Thank you.

2 thoughts on “What Proposition 126 will mean to your service bill

  1. Excellent notice, thanks for sharing your clarification. It is indeed one of the Propositions written as a double-negative to where “Yes = No”; or perhaps described as a proposal to not change status-quo.
    In my company, where we deliver SaaS applications for property management, lodging, and resort/hospitality technology; we face much the same challenge.

    I hope all of our customers see our “take” on this issue as non-political, and of practical opinion, which at the heart of the matter, it is, in my opinion.

    Thanks for being a proactive and conscientious provider in your business!

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