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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Lori Lee | 4:18 p.m. Jan. 12, 2009

Those of us who are self employed and pay a pile of taxes as it is, don't need one more tax. This doesn't solve the economic problems, it compounds them. As a real estate agent, especially in this market, we are working twice as hard to cover our expenses and support our families - more taxes/higher cost of doing business will not engender love or support, nor will it strengthen the Utah economy. I do not support this tax.

REAL ESTATE PROFESSIONAL | 4:17 p.m. Jan. 12, 2009

Taxing services, specifically real estate services would further deter people from buying and selling real estate. WHAT ARE THEY THINKING!

Jim | 4:15 p.m. Jan. 12, 2009

Governments only answer is to increase taxes. What happened to controlling spending and being fiscally responsible? Government is already too big. The last thing that we need is higher taxes and bigger government. When will our elected representatives understand that more is not better? We need to get rid of Huntsman as well as Senitors Hatch and Bennitt.

Comments continue below

Julie | 4:19 p.m. Jan. 12, 2009

Start looking at how many of the bills we pay each month to run a household are service based, can we afford to have them all taxed? What about emergency services? Not only purchasing a home, but running it will be cost prohibitive.

Realtor and contractors wife | 4:18 p.m. Jan. 12, 2009

What are you thinking, wanting to add more taxes to an already weakened industry. We are struggling to even make ends meet, along with all of the other people that we know in the building and real estate industries. If you keep adding taxes and hitting the ones that are trying to keep things going and supporting the ecomony, you will completely bring it to a stop here in Utah also.
Stop and look at what the govenment is spending and lets not tax the guy is trying to help support you. You all get a pay check whether we do or not. What if we all just stop paying taxes and then you wouldn't have a pay check either. We need jobs out here and then we need to be paid for the work. We are owed so much money and people are not paying for the work has been done for them. Governer Huntsman you are a good leader, just stop and think this through a little more before acting.
DON'T TAX US ANY MORE, WE CAN HANDLE IT RIGHT NOW!!!

just what we need | 4:25 p.m. Jan. 12, 2009

Oh, good, let's deal another blow to the struggling housing market. Putting a tax on services provided by appraisers, title companies, Realtors, builders, etc, just raises the cost of buying or selling a home. Ridiculous!

Kyle Pettit | 4:26 p.m. Jan. 12, 2009

I will NOT vote for him or any others who would do this. I own a small business computer consulting firm, entirely services driven. Another tax would put me under. This would kill the small guys like me.

Struggling American | 4:25 p.m. Jan. 12, 2009

I have been around for a lot of years. I know that the only fair tax is the tax on food. That way everyone pays a little in helping with their country. Taxing services is a double tax. You pay income tax then you have to also pay taxes on services. This is VERY UNFAIR. Unless you go to a flat tax then everyone pays.

Fed-Up | 4:26 p.m. Jan. 12, 2009

I've spent 25 years working in state government, and worked with ALL levels of government in the process. Junior needs to get his head focused on cutting, containing, freezing, and abreviating government--not expanding its burden. I realize this would be a foreign concept to him (just like it would be to his buddy McAmnesty), but it would actually be a declaration that the emperor in fact has no clothes on--because he DOESN'T. Government is hoodwinking you every day, and fooling away your dollars on mostly nothing ("services"), and those who tell you different are either naive, dishonest, or both. If Junior wants to spend more, let him spend Huntsman money--not ours. Government has a motto: "We have everything it takes to take everything you have." And that's apparently their overall purpose. We don't need more or new taxes--we need some actual LEADERS and STATESPERSONS at the wheel. Ah, but I'm afraid I wish for too much. But if more caught the vision, it might not be such an impossibility.

Andrea Cahoon | 4:28 p.m. Jan. 12, 2009

Along with increasing the price of purchasing a home as has been mentioned, what about funeral services? Doctors? Repairmen? If you think the amount you pay them is outrageous, just wait-a service tax would mean them too! This tax would have an inflationary result on the State's economy that its citizens do not need. In down economies responsible government should be reducing taxes.

Paul | 4:30 p.m. Jan. 12, 2009

How much is Utah spending taking care of illegal aliens with their education,medical,welfare and jailing costs?? Deport all the illegals and save our tax dollars. No new taxes!

Robert | 4:33 p.m. Jan. 12, 2009

No service tax-not another tax

Concerned Realtor | 4:34 p.m. Jan. 12, 2009

I think the issue has been summed up fairly: No Tax on Serices. I can't imagine a bigger quagmire than attempting to determine which service gets which percentage; which service is a "luxury"; etc. As a realtor and a landlord, I know how many service industries out there than could be adversely affected in just the housing industry, so let's don't jump on the this bandwagon. Gov. Hunstman needs to think this one through. Please don't tax services; you will set back the housing market by 10 to 20 years, some people will never be able to afford a home.

Hoffee | 4:35 p.m. Jan. 12, 2009

Most politicians are scrambling for ideas on how to fix the housing crisis. Huntsman's service tax will make the housing market worse. Wrong way Jon!

Monte K. | 4:35 p.m. Jan. 12, 2009

Taxing a service such as the ones I provide as a Realtor would be a further deterrant to anyone thinking of buying a new home. Thus aiding the already spiraling decline in New Home purchases. I expect Governor Huntsman and the state leadership to be able to think a bit more creatively that trying to tax professional services.

Gianni Versace | 4:38 p.m. Jan. 12, 2009

Govenor,

A service tax would only add "insult to injury"!

We are attempting to stimulate our economy, not supress it!

What are you smokin' . . Gov?

REALTOR

Realtor | 4:35 p.m. Jan. 12, 2009

In case anyone was thinking any different, the economy will be pulled out of this mess through the housing industry. Every human being has three basic needs: food, clothing and shelter. We are in the shelter business and it is through this industry that we will see a recovery from this economic nightmare. True, there were some in this industry that contributed to this problem but most of them are either facing charges or looking for new and different employment. We need to protect the services that support our recovery and cut costs, just like we all do at home and in our own businesses. Taxing everybody is NOT the answer.

Yvonne Sparrow | 4:37 p.m. Jan. 12, 2009

Mr Huntsman; What would be wrong with the fair tax law of 2005 to be passed in the congress H.R bill 25 what are your thaughts on this bill?

Steve | 4:39 p.m. Jan. 12, 2009

We have a Housing Industry crisis that is negatively affecting the whole economy, and now you want to add a tax on services? This would harm housing and make the situation worse...from title companies to Realtors to lenders to appraisers to inspectors...the list goes on, this would add greatly to the cost of selling in an already depressed market. Lets be smart about it if we are going to add a tax, and add it somewhere else. OR...just leave it alone, it's working as it is.

suckmedry | 4:39 p.m. Jan. 12, 2009

We are already taxed enough, especially the middle and low income people. There are no real tax breaks for us. So lets tax us more??? I have to agree with Anonymous, and say why not cut back the government, they are the top heavy ones.
Why is it, we the people, have to do the bailing out, when we the people, really are the ones that need bailing out?

Orem Jeff | 4:41 p.m. Jan. 12, 2009

Governor Huntsman needs to take a deep breath and realize that taxing services is going to hurt our state economy not help it. I wish he would have mentioned that he is planning on raising taxes a couple of months ago.

I would not have voted for him!!!!!!!

Remember Bill Clinton raised taxes on Arkansas & the people revolted and voted for a different governor the following round. Governor Huntsman the answer is not raising taxes, the key is lowering costs by cutting spending. It might be hard for a former ceo of a big company to realize there are programs you can cut instead of raising taxes. I think you might have some dormant Utah pioneer blood in you. Anyways the Utah pioneer motto was "Fix it up, wear it out, make it do, or do without" A tax on services is just going to ultimately hurt the average citizen of Utah. It probably wont hurt the ceo's pocketbook, but my pocketbook it will. Please don't push too hard to raise taxes.

Jane | 4:43 p.m. Jan. 12, 2009

PLEASE PLEASE PLEASE! Governor, I used to be a big fan... but you cant be serious about this one! With a horribly struggling housing market, and MANY Builders, Realtors, and Contractors out of work... how can you possibly think this is any kind of a solution. Stick a fork in me...

Realtor | 4:41 p.m. Jan. 12, 2009

The housing market crashing caused all the economy problems and now you want to make it worse. I deal with people every day who are struggling to make their house payments until we can get their house sold and this tax would add more burden to them. I really think this is a very very bad idea.

Realtor Ron | 4:46 p.m. Jan. 12, 2009

This is not a good tax. With the economy being what it is and the housing crisis over the last two years, this would be just adding fuel to an already big fire. As we all know this type of tax just gets passed on down the line to the consumer making house prices increase even more and building costs go up as well. I donï¿½t see any benefit in this tax. I will say that the sales tax on food seems to be fair since everyone has to eat and everyone pays the same amount of tax. Donï¿½t hurt the people serving the public needs with another tax that takes money out of a select group of people.

Broker | 4:44 p.m. Jan. 12, 2009

Taxing services such as Real Estate commissions, home inspection services, appraisals, home loans etc. will only make a soft real estate market softer. All these services will raise their prices to compensate for the tax and make buying or selling a home more expensive to the consumer. Bad idea Governor.

Robert | 4:47 p.m. Jan. 12, 2009

As a Realtor, I am opposed to the additional taxation.
I think it will inhibit rather than stimulate growth in the State of Utah. I'm a democrat. I voted for Governor Huntsman (republican) this year because he has served our State well. We've had some exceptional governors from our State. Both Republicans and Democrats. I hope our governor will re-consider.

Alltaxedup | 4:49 p.m. Jan. 12, 2009

Taxes are out of control and a service tax is not the answer. Why not have some cut backs in government. That is where we are Top Heavy.
Why is it that, we the people are doing the BAILING OUT? It should be the other way around and we the people should be the ones getting BAILED OUT?

Realtor and Loan Officer | 4:49 p.m. Jan. 12, 2009

Bad idea Governor. Just in housing alone you would increase prices 3 to 5% on new constriction. Since prices are down 12% lower end and 25% of more over homes over $500,000, the housing industry would just stop dead. This would affect services like refinances, title works etc it would increase your costs as consumers on refinancing.

FYI the senate wants to place a sales tax on home sales this year. The Utah Association of Realtors is gearing up to try to stop this. But it is going to be a proposed bill and with taxes down it will have more supports.

Less government would be nice!

Anonymous | 4:50 p.m. Jan. 12, 2009

Our industry cannot handle more taxes. The governor and all the bureacrats need to dip into their own pockets to see how much we as individuals fork out to make a living, Self Employment taxes, exorbitant health insurance costs if you can even get it, marketing costs that are not re-captured until a property is sold. If everyone was held to performance and didn't get paid until the job was completed like we do , there would be no need to even think about it. Why don't we look into the background of these people who are trying to raise our fees and look into the success rate they have had in running a business. I think one would be very surprised on how many have failed business records and filed bankruptcy but they are telling us how to run ours and make us pay more taxes.

Anonymous | 4:51 p.m. Jan. 12, 2009

Last year the Salt Lake county gave away more than $20,000.00 dollars to the white city community council, and who knows how much to other community councils, with very little over sight and they didn't have to sign anything to be accountable for there money, at least white city didn't. This money has been used for nothing of use to white city that can be measured. This continual abuse of money is why Governor Huntsman is proposing this. I suggest that you reevaluate your priorities and check out where the money is going. This state has to many cracks that money falls thru. Putting a tax on Professionals would be another way to keep the loop holes bleeding. I am a realtor and see most of my associates barely getting by, I know more than 15 Realtors that are living off of $22,000 a year and you want to put a tax on there income. It will just lead to higher fees and more bad feelings towards Realtors for having to raise our fees, that are to high now in my opinion. I recommend that you reevaluate the states spending habits and look with in Utahï¿½s pocket book more.

Randy | 4:54 p.m. Jan. 12, 2009

Taxing services. What a nightmare. Can you even imagine how much more goverment that would take to regulate? Lets look at services in the housing industry which is already down in the dumps. We are talking about taxing builders, electricians, plumbers, realtors, loan officers, title officers, etc. etc. What would that do to the price of a home? How will that help the economy? There is way to much riding on the housing industry recovering to help bring the economy back up. Please do not go down that route. You will be taxing the daylights out of those homes when they become occupied any way. I'm all for raising the cigarette tax as long as a good portion of the tax is used to educate against smoking and offset the huge costs of health related problems by those who are addicted to this loathsome habit. Eventually maybe this tax will not bring in any money because everyone will quit. I'd be O.K. with that. Our current tax on cigs is way too low especially oif you look at the National average.

Jamal | 4:59 p.m. Jan. 12, 2009

I lived in a State that taxed services and it was very bad for the economy and for citizens of the State as well. I am a democrat and I do not mind paying taxes however, this is not the the WRONG way to generate tax revenue.

Jake | 5:05 p.m. Jan. 12, 2009

Taxing tabacco sales...OK! Taxing professional services...BAD IDEA!!!

Scott | 5:08 p.m. Jan. 12, 2009

Gov. Hunstsman: I suggest you reconsider your budget and look back into the operations of your own kingdom.. I still see UDOT crews of 4 watching 1 work. I see a Fish & Game department squander our wildlife resources and game populations in the name of permit income. Now you are considering taking an already troubled segment of our economy and permanently holding off recovery in the housing market? If you think service people are the last people who's pocket you have not climbed into, think again. Each licensed person pay taxes and fees to Utah just for the privilege of doing business in Utah.

Stop the madness, go back to the drawing board, and revive not decimate the housing industry.. Sir

Name | 5:05 p.m. Jan. 12, 2009

How much more will "We The People" take before we stand up for ourselves? We don't need more taxation we need less government. Less spending on "bailouts" and war! Our system is a mess and our officials have no clue on how to fix it. So, the logical fix is more tax? There are so few items that are not taxed at this point. Lets keep it that way.

Scott-Business Broker | 5:08 p.m. Jan. 12, 2009

I am a business broker and it is hard enough to make ends meat as is. Taxing services would be harmfull in many aspects and would put a large number of business brokers and real estate agents out of business. I am more than willing to pay my fair share of taxes and if you must raise taxes do in another way that will not effect the economy and the citizens of the Great State of Utah in such an adverse manner. For the most part Gov. Hunstman has done a good job and I feel that he will not Tax services.

EJ | 5:10 p.m. Jan. 12, 2009

No Way can the Utah economy and the housing market sustain any, I repeat any new taxes. Tuff times require tuff actions benefiting the home buyer, not further deturing the ability to buy housing and our ability to service the housing industry.

Teri | 5:11 p.m. Jan. 12, 2009

This is another crazy suggestion! We have been in the building industry for 25 years, we PAY sales tax on ALL the job materials that go into a new house. You want double and triple taxation, by taxing the final product? Do you think we can sell a home at $400,000 and then "charge" a tax on the services such as: Title Company for Title Insurance, Real Estate Commissions, Appraiser's fees, Mortgage Broker's fees? All of these professionals already pay Self Employed taxes (which include the Social Security and Medicare Match!!!! Not just the 'employee' portion!) and Federal and State Income Taxes on their incomes. Do you think the consumer can bear anymore burden and keep the real estate and construction markets going as well? The proposal to charge Sales Tax on the services would mean "adjustments" on all of the above. We are already moving into the negative range as it is, and the current economy is not conducive to incorporating a tax like this! Say NO to taxing services, Governor!

ShirLee | 5:15 p.m. Jan. 12, 2009

This tax proposal to add on services is crazy! It would just open up a pandora's box of additional mayhem, not only to the struggling housing market but also to the struggling small business owner, families and the elderly. Utah already gets the majority of our money in property tax, sales tax, food tax, business tax, state tax, city tax, etc. along with all the services we have to use that pass on their taxes to us. Now the guv wants to take the last of the dream of home ownership and/or owning one's business down several more notches by putting another nail in the coffin with a CAPITAL T! Let's not forget the elderly or low income families that are barely making it during these challenging economic times! Why not have fund raising events to take care of the state's screw up like they do for supporting their campaign and promises instead of making the people pay for it? I suggest raising taxes on luxury items like cigs and alcohol that ruins people's lives and health and those of others, not services which for many will end their quality of life!

Sharee Killpack, Realtor | 5:16 p.m. Jan. 12, 2009

Taxing professional services is not the answer to helping the needs of the state. It will only add to the economy problems...the Governor should be thinking of ways to give back to the citizens not taking more out of our pockets. No one has a penny to spare. As a Realtor, I know without a doubt that tax on services will only hurt the economy more because there will be less money for people to spend. If subs and Realtors and every independent contractor gets taxed any more, there will be more homes foreclosing, more lay offs, and more bad debt to name a few...since there will be less income to pay those obligations. Let's think of a better plan, Governor!

Barbara/Central Utah | 5:23 p.m. Jan. 12, 2009

Taxing services in the present economy would be a huge mistake. It would create more unemployment, cause more small businesses to go under, and all in all drive us deeper into recession. Please don't even consider such a horrendous concept!

sharel | 5:25 p.m. Jan. 12, 2009

Are you nuts??????????? That is the worst idea I have heard yet

Dan | 5:26 p.m. Jan. 12, 2009

Didn't this tactic NOT work around 1930? Taxing the already stressed should throw the rest of the ailing into total ruin! If he does implement it, hopefully he will turn all the tax money directly over to the education fund...not to fund salaries of state legistators worrying about the verbalization of a holiday or a bottle of liquor behind the bar at a dining establishment.

This state is taxed to the hilt with a sales tax and an income tax. Our boys and girls on the hill still can't seem to allocate enough dough to our educators or students. I have ZERO confidence that more money out of my paycheck coming fromt the state further taxing my professional services will make it to the kids in the classroom.

NO MORE TAX!

Ruth Metzger | 5:29 p.m. Jan. 12, 2009

A tax on services puts the burdon on service type businesses. As a realtor in rural Utah, I would be forced to pass the tax on to my sellers & buyers. The public will not use real estate agents, thus reducing my family income and further depressing the housing market. I make less, I spend less, I put off using services that I have to pay a tax on.

Belva | 5:28 p.m. Jan. 12, 2009

Gov. Huntsman, get in the real world! You need to get into the heads of working people in Utah. NO new taxes! Putting a tax on services will only add to the cost of a product,home (wow, all we would need is 2-3-4% tax on any part of the purchase of a home), hair cut etc. The people of Utah are taxed enough. Do not take more tax from food. That is the only equal tax paid. We need to be aware of waste, not taxing more to waste more. Remember, we have a tap line thru our legislators. They are the ones we need to contact and become acitve participants with.

Vern Wheatley | 5:47 p.m. Jan. 12, 2009

HELLOOOOOOOOOOO! Governor Huntsman is suppose to know that raising taxes retards growth. We are in a deep, deep recession and heading for a depression. Lets get the economy going again by encouraging people to buy again and not taxing them to a point that they have to barter to survive.

CT | 5:44 p.m. Jan. 12, 2009

If you start taxing services you will make the housing market even worse. Buyers won't buy, sellers won't sell they will let them go to foreclosure. All of the taxes will go down the line to fall on the buyers and sellers.

Mike Realtor | 5:53 p.m. Jan. 12, 2009

This is a very regressive approach to taxation. I feel that anything done to weaken the already strained housing market would be distructive not for the ability of the public to purchase and or sell their homes but would have a serious negative effect on the economy in general. I urge the Governor to rethink this approach of taxing. My suggestion would be to end and do away with all dead wood employees and programs that are currently in place and streamline the state government.

Joel | 6:00 p.m. Jan. 12, 2009

I am a Contractor and Realtor. In this economy it is difficult enough to make a living. I fear more taxes will only cause further harm to our already struggling businesses. If there is a budget deficit than quit spending money we don't have and then expecting hard working business owners to foot the bill. Adding a service tax is a ridiculous idea!

CR | 6:02 p.m. Jan. 12, 2009

Tell us how much you spend on illegal's medical,dental,special education,english as a second language,rent support,BO/GYN'S,free breakfast and lunch meals,printing any gov't information in spanish AND our national language-ENGLISH,gas and electric subsides,Border patrol,legal services,the juvinile and adult jail and prision systems,domestic violence facilities and medical /dental care during those events,gang related expences,etc.CUT ALL THAT OUT!Then ask again.

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