Deseret News | Huntsman ready to revisit sales tax on services

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Huntsman ready to revisit sales tax on services

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Selina | 2:27 p.m. Jan. 12, 2009

If you tax on real estate services, such as realtors, appraisers, home inspectors, etc., people will be deterred from buying home because the taxing will be so high, and they will not want to use those professionals, and it will get them in a lot of legal trouble if they buy or sell their homes themselves and didn't do home inspections or appraisals.

Grandma | 2:27 p.m. Jan. 12, 2009

WHAT? ADD ANOTHER TAX? NEVER !!!! It is time the government used sound budgeting stratgies like us common people do. Stay out of debt, stay within your budgets and if you can't - then lower the budgets. Lower your salaries, or add an additional tax to politicians salaries. I'll bet I could red line a BUNCH of expenditures on your budgets. Maybe you should give us the chance??? I appreciate the chance to speak my mind, and here it is:
Taxing our professionals is only going to add to the cost they charge us, and we can't afford to pay higher prices for them. I agree with Grandpa - it is a stupid idea and will only make it more difficult for the general public in the long run. Of course those extra taxes would be passed along to the general public in the long run, so why not just leave the food tax on and spread it out to everyone? We all live with one truth. Make more or spend less. Since you can't make more - you must spend less.

REAL ESTATE | 2:29 p.m. Jan. 12, 2009

I am sure all have noticed we are in a financial and real estate crunch. Home buyers have a reluctance to pull the commitment trigger and real estate professionals are doing all they can to beef up business standards to better represent their clients and bring added value. Hundreds of jobs held by those involved in real estate have disolved and many have left for greener pastures. By adding costs to everyone involved from builder to end consumer and all involved getting there the housing market will continue to carry a massive financial burden that will hurt property values and the livelihoods of many professionals and home buyers and owners. Reconsider this for the economic well-being of Utah. We don't need any more nails in the coffin.

Comments continue below

Realtor | 2:28 p.m. Jan. 12, 2009

No taxing of services!!!

Realtor | 2:28 p.m. Jan. 12, 2009

I am against taxing services...these costs just get passed onto the consumer anyway. As a Realtor, if you tax my commission, I ALREADY have to pay my OWN Social Security taxes - double what people who work for a company must pay!

I'm for the government just having to DO WITHOUT services, or cut back on spending to make up for budget shortfalls - that's what we have to do when we don't earn as much - I either have to quit spending money, cut some of my costs, or quit buying as much food, spending as much on gas, etc.

The government should do the same...anytime the economy goes bad, all government wants to keep the same $ coming in since people cut back their spending (less sales taxes, etc), so they look at how to keep the same amount of money coming in so THEY don't have to do without - when all of us must do the opposite!

Cut more services, cut spending as much & live within your means.

Too Many Fees and Taxes Already! | 2:32 p.m. Jan. 12, 2009

What's next? Aren't we already taxed and fee'd to the poor house? Doctors and Lawyer fees would be higher as well I expect. NO THANK YOU. DO NOT add a tax to real estate commission, appraisals, mortgage origination fees (or hadn't you thought of that one yet), home inspections and tests, title work, surveys and the list goes on I'm sure.

A Real Estate Professional | 2:30 p.m. Jan. 12, 2009

You think the housing market is bad now? Wait until appraisers, inspectors, title agents, real estate agents, loan officers, underwriters, processors all start charging taxes. You can add another 3% to your closing costs!!!!!

Anonymous | 2:32 p.m. Jan. 12, 2009

With the well documented public health issues associated with smoking, I support the tax on cigarettes. However, a tax on services would be counter productive. The cost of such services would further reduce the availability of these services to the income levels already struggling to access professional services.

Terri | 2:31 p.m. Jan. 12, 2009

NO TAX ON SERVICES! You Can't use the money you have already correctly and now you want more! Next you'll want to tax breathing.

Not Now! Reconsider This | 2:31 p.m. Jan. 12, 2009

Imposing a tax on this economic climate may worsen the economic forecast. Let's get through the tough times with as little dislocation as possible, then reconsider tinktering with taxes. Separate question--Do you really think we are ready to tax ourselves on every service we hire? Hire a mechanic, you then pay a new sales tax. If you hire a lawyer to do your divorce, then you pay a new sales tax. If you hire a dentist, then you pay a new sales tax. If you hire someone to fix something in your house, then you pay the new tax. If you hire a carpet cleaner, you pay a new tax. This is sooooo dramatic. Are you really ready Utah to become the tax me at every turn state? Is this what business wants for its business climate? Tax, tax, tax, tax. Any service, all taxed? All services, all taxed. We are talking citizens getting taxed on everything. I sure hope the Senate Republicans will stand up. Sen. Neiderhauser show some strength against the Governor, will you?

Brad | 2:34 p.m. Jan. 12, 2009

Way to go Little John. I think that is a great idea to tax every kind of service that is provided in buying/building/selling a home. That way we can add one more burden to an already weak and dying housing market. Good thinking, Go Obama!

Stephen | 2:34 p.m. Jan. 12, 2009

If the great state of Utah under Huntsman's watch would just stop the expensive advertising for welfare services it would be a good start. What idiot decided it was a good idea to encourge lazy people to suckle off those that work.
No new taxes. Balance the budget like the rest of us have to.

Salt Lake Realtor | 2:33 p.m. Jan. 12, 2009

I can see how this is going hurt our real estate industry. Are builders and their subcontractors going to have to include tax on their service with this plan? Yes! How will adding more cost to homes help our delicate housing market? And with closing services and fees then being taxed and cost rising there it will deter even more people from buying, selling, and moving in general. Housing is a big economic driver and needs breathing room to recoup during this time, not be smothered by more cost to builders, professionals, and consumers.

KD | 2:33 p.m. Jan. 12, 2009

The tax on food is the only fair tax we have, everyone pays except those on government subsudies. If you don't want to pay the tax, don't eat so much. There are plenty of overweight people in Utah. Shifting the tax burden just makes job security for politicians and lawyers, which we have too many of anyway.

Boone Newson | 2:35 p.m. Jan. 12, 2009

ABSOLUTELY "NO" TO A TAX ON SERVICES!
I have a great memory when it comes time to vote!

logan | 2:34 p.m. Jan. 12, 2009

The last thing the economy needs is to make it harder to buy a house, not to mention everything else that will be affected. Do Not Pass This Tax!!!

Brent | 2:34 p.m. Jan. 12, 2009

When in this life will we stop taxing everything we do. My simple fax telephone line from Qwest cost 11.00/ month. TAXES/Service fees bring my total to $29.57/ month. When will we have a Boston Tea Party to say ENOUGH IS ENOUGH? CUT SERVICES, CUT Government and we'll do just fine. Perhaps this will be the undoing of a governor! We all are loosing in this recession, sorry government should take the loss also.

Joshua | 2:38 p.m. Jan. 12, 2009

I think that this ia a wonderful idea. We are in, arguably, the worst economy since the great depression. I am a Realtor. Many of my associates are leaving the business because of lack of sales. So lets make it more difficult for Sellers to be able to sell, or Buyers to buy. I think I understand this mentality, we are going down so lets go down in flame. Anybody doing a refinance, deed transfer, quit claim, or job transfer would be affected by this. Why don't we just stop our economy completely. Why don't we just kick gas prices up to $7 a gallon and tax that it seemed to work earlier this year. Maybe Huntsman should go to the FEDs and ask for a bail out, every body else is. Seriously though we need to just have faith and push forward. Let's not make irrational decisions that will have negative effects on us down the road. Why don't we find a way to create ways to stimulate the economy instead of illing it.

Fat Boy | 2:35 p.m. Jan. 12, 2009

Wow! that is all we need one more thing to pay taxes on. All this means is more money out of my pocket going into the Government. I do NOT agree with this!

Shannon | 2:37 p.m. Jan. 12, 2009

I am personally against adding more taxes to the already endless list of ones that are already in place. I think that subjecting one type of field (services) with taxes, to make up for the entire publics food tax is not a direction that is to be taken lightly. As mentioned previously, it will have many other things involved with putting this tax into place that it may end up being more than it is worth. I was not aware that there was any issue with the lowered food tax rates need to elimination for this to be of consideration anyhow.

Michelle | 2:35 p.m. Jan. 12, 2009

By taxing professional services, we are talking about everything involved in buying or selling a house! It seems to me that the spiral down in the economy began because of the spiral down in the housing market...and those endless jobs affected by it. Now we are going to tax all the people who still work in that industry (engineers, surveyors, title companies, real estate agents, inspectors, architects..) so that those still with a job will have to finally move along. And those considering buying a house, will now be faced with even higher fees and costs! Sure..why not?! Let's just end this silly thing, called the housing industry once & for all! A quick cut to the jugular, instead of the slow bleeding that's been going on!

Kathy | 2:36 p.m. Jan. 12, 2009

So this is like a sales tax on all of the services necessary for building, buying and selling a home? So with the already shaky situation with the housing market, the Gov wants to place a tax on services so the market will be even softer? Gary Herbert is/was a licensed Realtor, so how could he even want to consider this? Come on Gov check your surplus coffers again.

A Realtor | 2:38 p.m. Jan. 12, 2009

In an already depressed Real Estate market, taxing Realtors, means either they make less or pass the increase onto their already strapped clients.

I think the bad outweighs the good.

Utahmom | 2:37 p.m. Jan. 12, 2009

I think I'll start taxing my children to live in our home--that makes about as much sense as the proposed tax increase! Raising taxes is never the answer, ask Robin Hood. It's all about economizing on services and moving away from a Socialist government environment. The problem isn't going to go away with more $$ being fed to the machine. Hey, we the people are cutting back--so can the Government body.

Professional | 2:40 p.m. Jan. 12, 2009

Seriously?

A sales tax on services would seriously hurt an already weak housing market as well as homeownership in general. Under such a proposal, each of the myriad services used to build a house would be taxed, resulting in drastic increases to the price of a home. The services used in buying and selling homes would also be taxed, including real estate commissions, appraisals, home inspections, title work, surveys, etc. With all of the extra costs involved just to complete a transaction, many consumers would be deterred from home buying, moving or using a professional.

REALTOR | 2:40 p.m. Jan. 12, 2009

This is a very bad idea that will only make the average person struggle even more in the current economy. Many of us are barely eking by as it is and to add more taxes on professionals is just plain bad for everyone.

Georgia | 2:38 p.m. Jan. 12, 2009

Do we want our Real Estate market to be further jeapordized? Taxing services for all those who deal in the Real Estate is not the way to go. In the end, the consumer - the buyer - will be hurt the most. It will result in stalling the market. Please don't tax services!

Pops | 2:39 p.m. Jan. 12, 2009

A service tax will be a burden on the small businessman with extra accounting, reports etc. Why not keep the tax on food as it presently being collected and this spreads the tax over a greater population basis.

JLyn | 2:42 p.m. Jan. 12, 2009

Sean,

I've read all the comments and yours was the best, I just wish more people would get out of their tunnels and come to reality. But if that means admitting that obesity is as bad if not worse that smoking, that will never happen.

Do you really believe that raising cigarette taxes will make people quit? I think it will only increase Idaho's revenue. Then I guess we will have to increase the taxes on green jello.

Perhaps we could leave the taxes alone and decrease spending.

Gordon | 2:41 p.m. Jan. 12, 2009

It does'nt seem to make any difference who is in office they are never there to really help ALL the people they are supposed to represent. They all end up worrying about what grand pyramid the can build for them selves so they can be remembered as a great person. Legislature take note WE the People do not need any more new or raised taxes or new laws. When we make less we spend less wake up to reality. Remember those stories you heard when you were a child? You can kill the golden goose you know!! PLEASE WAKE up and see reality , not your rose colored political Glasses.

Dave Palomares, RE Broker | 2:41 p.m. Jan. 12, 2009

What are you thinking, Governor? The housing market is all ready hurting, this would just increase the cost to buy and sell. There are many other ways of increasing tax revenue, i.e.. gas & registration, lower business taxes or create more incentives to build more business up & bring more corporations to Utah, so we would receive more state income tax. TAX the alcohol consumers like the tobacco consumers, you do not need beer & cigarettes to live , but you sure do need a roof over your head.

L Strebel | 2:46 p.m. Jan. 12, 2009

Gov. Huntsman is again expecting to make big bucks from a smaller and smaller minority of Utah citizens. This small minority is expected to grin and bear it and just pay more and more. The rest of the citizens get the benefit.

I, for one, am starting to look for a dealer to supply my cigarettes. That way, not only do I not have to pay such a mean tax but the state will lose the revenue that it collects from me now.

I must say the Utah sin taxes remind me of the Crusades; convert or die! And for the uninformed, this includes those who have never smelled tobacco. I don't buy the nonsense that I can save my life by not smoking. Matter of fact, I laugh out loud when a commercial ad that says how harmful second hand smoke is. That makes it sound as though a smoker is much safer than those who have been around a smoker.

Gov. Huntsman, what did you do with the billions you got from the lawsuit that was only supposed to be used to help people quit? And what happened to "choice"? Isn't this coercion???

Ryan A | 2:43 p.m. Jan. 12, 2009

If we put a tax on services everybody who uses those services will pay more. I think that would also be a double taxation because most service providers already pay income tax. It's time to start cutting welfare and social programs. They aren't governments role. If people want to eat they should work, if they can't work then let the civic and church organizations step in to help. If you raise taxes it will just create more poor and dependent people. Just look at the example of our Federal Government. It's time to wake up and realize that all these taxes are killing the middle class. Those who continue to pay for all of the social costs. The wealthy just pass the cost of taxes on to those who are consuming and not living off the government. Let's expand the middle class by reducing the welfare roles and getting people back to work. If you don't want to work and contribute to society then you shouldn't be a part of society. It's not governments responsibility to support every one that claims to be in need.

Max G. Walters | 2:47 p.m. Jan. 12, 2009

It's really amazing to me how a governor who is complaing about a budget shortfall in a very sick economy, can even consider "extra-taxing" the very sickest part of that economy to solve all the states other problems. Realtors and many other prifessionals will fight this destructive tax with all their might. The housing market is already suffering severely, partially because of impact fees and other tax burdens previously placed on our homeowners. Spur the economy and solve budget issues by furthur adding to the cost of housing, while at the same time, significantly reducing the incomes of ALL those professionals who work so hard to provide affordable housing? Does this make sense to anyone? Utah County had 2400 licensed Realtors in 2008. Now we have less than 1600. How many more hard working people are expendable to our governor? How many more of us does he intend to drive from our business? How many carpenters, plumbers, electricians, etc. is he willing to add to the already growing list of the sad and unemployed? How many more Utahn's is he willing to make home ownership impossible for with new taxes?

Anonymous | 2:47 p.m. Jan. 12, 2009

I personally think that the food tax is the most fair tax there is. That way everyone pays a share. I think removing the food tax in favor of putting it on to services is just more welfare and feel everyone should help in some way with our tax burden. I do not support the idea of being taxed on services to make up for food tax removal as Govenor Huntsman proposes. As a realtor I see it will discourage an already stale housing market if services have to pay a big tax that has to be passed on to the consumer. That is a huge penalty for buying a house, what are we thinking? I am a realtor and am against that idea whole heartedly. Other services will be similarly effected. How sad. We need to go another direction other than discouraging the economy as a whole with this measure. We need to stimulate it. This does not do that!!
Jackie Wilkes
Prudential Utah Real Estate
Realtor for 18 years

Berta MacGregor | 2:49 p.m. Jan. 12, 2009

Governor Huntsman and the legislature perform jobs that are considered services - and we already pay dearly to cover those services.
I am a Realtor and adding a service tax to my profession would elevate the cost of purchasing a home at a time when it is already very difficult to get financing. The food tax is not exorbitant and is equal to all of the Utahans. I think that any further increase of taxes, no matter on what, should be on the ballot and voted in or out by the citizens. Any other method is truly "taxation without representation."

Concerned | 2:53 p.m. Jan. 12, 2009

Implementation of a service tax has catastrophic potential. It will reduce the ability for the people to obtain medical care, legal representation, tax advice, educational assistance or to pursue the dream of homeownership - which we all know helps to stabilize the economy. The financial repercussions caused by the domino effect brought on by this are enormous. The financially disadvantaged already receive state aide in obtaining healthy food, so the minor food tax that we have is not inappropriate and removing it will not have a drastic effect in the daily lives of anyone. I implore Governor Huntsman to find other methods of obtaining revenue - a tax on services is pure folly and economically unsound.

Jared | 2:51 p.m. Jan. 12, 2009

Why target professionals who offer a service to the public?

I am a professional service provider. I pay taxes on my home to support education, I pay 15% tax on my income because I have to pay both the state & federal employment taxes. I pay tax on my food, the office supplies and equipment I purchase, and the gas that I go through by the barrell.

Why would I want to continue to stay in business if yet another tax is heaped upon me. I have to either raise the cost of services or leave the business. If I leave the business other businesses who do business with me lose revenue further reducing the tax the state could gain.

Wake up governor, taxing professionals to reduce sales tax on food isn't going to help anyone as services we rely on will go up and offset the savings of no sales tax on food in a negative way. Robbing Peter to pay Paul doesn't work.

had enough | 2:59 p.m. Jan. 12, 2009

You think the housing market is in the tank right now??? Just imagine how many people will be able to afford to buy a house if a "services" tax is implemented. Wake up people! Wake up elected officials! Maybe you want us all to start selling our organs to be able to afford to even survive? Of course then you'd tax that too! Stop the insanity! Stop letting large corporate crooks get away with grand theft! Stop paying mortals millions of dollars a year for playing sports or for CEO's golden parachutes! Stop paying millions of dollars to study snails and flies! Start taking CARE of the PEOPLE! What a concept Cull the deadbeats off the welfare rolls, put legal Americans to work, refuse to give away the American dream to those who come here illegally, refuse to learn English, and who dishonor our laws and our flag! The honest and upstanding American is the new "poor and down-trodden". Is anyone out there even listening? Is there a politician alive who even cares? Make the Senators and Congressmen live on Social Security and see how fast they fix things! There's so much FAT that should be trimmed! Just do it!

Rachael the Realtor | 3:29 p.m. Jan. 12, 2009

A sales tax on services would seriously hurt our already weak housing market as well as homeownership in general. Under Huntsman's proposal, each of the services used to build a house would be taxed, resulting in increases to the price of a home. The services used in buying and selling homes would also be taxed, including real estate commissions, appraisals, home inspections, title work, surveys, etc. With all of the extra costs involved just to sell a home, many people would be deterred from home buying, moving or using a professional. :(

Ileus | 3:48 p.m. Jan. 12, 2009

I am very much against to tax a service in RealEstate. A industry that is already suffering tremendous. We RealEstate people are hurting.
Please find aniother way to create revenue.
I like what you are doing to our state. Do not blow your popularity!

danny | 3:53 p.m. Jan. 12, 2009

Charging more taxes in a recession has always helped(sense the sarcasm). I agree with the commentor above, make government sinch its belt instead of charging more taxes to the public. This is a ridiculous proposal.

I voted for Huntsman | 4:02 p.m. Jan. 12, 2009

with the hope that he would, rather than raise everyone's taxes, determine which of the current gov't "services" were useful. If professional services were taxed the end consumer would be the one who pays for it and all of us are end consumers. I fail to see where the economy would get a boost out of this proposal. I do see where the state would get more money to spend without having to justify their current spending habits. Why not go through the current budget and make necessary cuts, just like we all do with our household and personal budgets. We should all be responsible in this fiscal diet and make wiser choices for our hard-earned money.

Chris | 4:05 p.m. Jan. 12, 2009

No. Bad Idea. When is government going to restrain its spending. It just keeps growing and growing and taxing and taxing. I'm getting sick of it. We as a people need to stand up and say we dont want a bigger government.

Mike | 4:06 p.m. Jan. 12, 2009

Doesn't that amount to double taxation? Just because I get paid for a "service" I have to pay when I charge, and still pay taxes on what's left...if anything. When will the socialists, including Huntsman, realize the truth that we just want them to do less. How about a 2 day session for the legislature?

Alan | 4:10 p.m. Jan. 12, 2009

I think the Governor is operating on the misguided notion that the more tax types you have the more evenly the burden is applied. How about a Twinkie and Soft Drink tax. This proposal would at least provide some overall health benefits. No to the service tax.

Melissa Collings | 4:10 p.m. Jan. 12, 2009

And we all think the housing industry needs a boost? By allowing a service tax this could possibly be the worst thing that could happen to an already slow housing market! Governor Huntsman, please reconsider this movement!

Anonymous | 4:09 p.m. Jan. 12, 2009

Im sick to death of you so called leaders coming up with new tax after new tax everytime we the people turn around! You jerks should try cutting down on your lavish expenses! The reality is, the more you and your kind tax tax tax, the more you make this nation just like all the democracies. Instead of being a better place to live, work & dream, we become no different from any other so called democracy! That's the legacy you will be leaving to the next generation by taxing us to death. So Thanks alot! Thanks for making us like all the others! What we need are some real leaders. Leaders who will stand up and say enough is enough when it comes to taxes, government spending, and government handouts!

paul hanseen | 4:17 p.m. Jan. 12, 2009

taxing professional service is a burden on the service. It does nothing to increase the economy revenue or jobs. instead provide investment in programs that create jobs. Fund exisitng projects that have been stalled due the credit crisis. Look at the wealthy such as the Governer and his family. Tax this group first.

Service Tax? | 4:17 p.m. Jan. 12, 2009

Service tax will only place a heavier burden on working citizens. My business is already struggling and if I have to pay an additional tax I am closing my doors and signing up for public wellfare.

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