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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Fellow Realtor | 6:07 p.m. Jan. 12, 2009

Taxing services is just a bad idea. For those folks out there that are just regular lower or middle class people it will just hurt them all the more and make the economy even worse than it already is. There are all ready too many taxes as it is. Take another look in your own pocket Govener and take out some of your own money and help out. Bet you wouldn't be willing to do that would you. The housing market has been hurt enough without another stupid blow to the market.

Anonymous | 6:07 p.m. Jan. 12, 2009

When government takes your money it's called:

TAXATION

When anyone else does it. It's called:

THEFT

Anonymous | 6:09 p.m. Jan. 12, 2009

I am apolled at this proposal. It's not like we aren't already hurting enough. This is not the answer to anything, as it will hurt things more then help things. Please don't do this if you, the applicable person, gets this message!!!!!!!!!!!!!!!!!!!!!!

Comments continue below

Bob Thompson | 6:12 p.m. Jan. 12, 2009

To the Governor,

We already pay taxes on all foods and labor. Our neigbors to the south, Nevada, don't pay tax on labor or food, at the stores. At about the same rate. Now, you what to drive our costs up even more. An example is Real Estate, the some what normal commission on the sale of a home is about 6%. You want to effectively raise to 7%. We don't get a very good "bang for our buck" as it is, and you want to make it worse.

Dennis Murray, Realtor | 6:12 p.m. Jan. 12, 2009

Governor Huntsman: please do NOT implement a sales tax on services! This would put the final nail in the coffin on the already dying housing market! I've supported you as Governor up to this point... don't force me into changing my mind.

Are you kidding | 6:16 p.m. Jan. 12, 2009

Well, I guess the professional tax should start with all polititians without the option for a pay raise since we the people pay them. Just wondering do they have to pay for a professional licence or even a buisness licence or are they exempt. Self employed people pay self employment taxes, match taxes for employees, unemployment insurance, buisness insurance, and a professional licencing fee which by the way if you do the math with all professionals licenced in Utah reaches into the Billions. WHERE DOES THAT GO? Why don't we wake up and demand accountability for spending our money. Has anyone noticed what they pay to re-licence a vehicle lately I have a boat that cost me twice as much to licence this year than last year. And your complaining now. We should have stood up to government spending years ago. Now the sticks to big.

rvalens2 | 6:15 p.m. Jan. 12, 2009

If we have to tighten our belt during a recession/depression, what gives government the idea that they don't have to?

Sounds like it's time for another Boston Tea Party.

Tiffany | 6:24 p.m. Jan. 12, 2009

I love you Huntsman's but this is a thubs down! Not a good idea at all.

Steve Andrews | 6:31 p.m. Jan. 12, 2009

Dearest Govenor,

Please dont add taxes to services. It will kill an already dying economy. I know and have had several frinds who work for the state. They have all said there is still a lot of waist in the budget and too many state employees in many (not all) departments. There should be no new taxes or tax increases until every state run department is running at peak efficiency. You know that we have not achieved that yet. Please concentrate on that.

Sandy | 6:39 p.m. Jan. 12, 2009

Owning a home has always been part of the American dream, well so much for the American Dream! Todays young familys can not afford to pay MORE taxes. If we all made as much money as Governor Huntsman, it won't be a problem. But since we don't it a PROBLEM!!

Jim Cavin | 6:47 p.m. Jan. 12, 2009

I am an appraiser and would lose considerable time managing all the paper work that this would require. Think how much fun it is (not counting on the lost time) to fill additional government paperwork. Also this would create jobs in government to manage and review the process. When I had one employee I was audited by the state for my workers compensation and unemployment taxes. I deceived it was better not having employees. This could cost thousands of good active jobs.

Cathy Palmer | 6:57 p.m. Jan. 12, 2009

Go ahead and raise cigarette tax - but don't even think about taxing real estate transactions and medical services etc. As if real estate wasn't hurting enough right now - that's all we need is to add additional costs to that transaction! Can you imagine taxing the builder, the sheetrocker, the painter, the electrician, the plumber, the bricker, the stucco guy, the realtor, the title company, the lender (do I need to go on?) Can you imagine what THAT would do to the already sinking real estate market?? And I won't even go into the medical - I think that speaks for itself!

Jim | 6:59 p.m. Jan. 12, 2009

Governor: Think of the cumulative effect. A transaction in real estate has many components, mortgage, title, appraisal, home inspection, agent etc. Makes no sense to add such enormous taxes to an industry that is already dragging down the economy due to the fraud and greed of a few. Think of the buyer and seller who ultimately pay the multiplying taxes. Perhaps we should have the bankers and lawyers added to the transaction. That would seal the fate of Utah real estate. Let's cut back on spending.

Maura | 7:11 p.m. Jan. 12, 2009

In these very interesting financial times, I feel it would be most inappropriate to even consider a tax on services. People are cutting spending back everywhere and to add an additional tax on to existing services means that the consumer would be paying even more. So what would they most likely do? Maybe do without and cut back and so who loses, we all lose in this scenario. In my mind, this is not the wrong time to bring up this proposal.

Michele | 7:21 p.m. Jan. 12, 2009

You have got yo be kidding!!! On top of the expenses from inspection to title the poor buyer/seller is already having a heart attack at the closing table as it is!! Aside from the Buyer/Seller, the Realtor pays fees every month just to stay in the business. This does not include marketing expenses, gas, phone, clothing,closing gifts, thank you card, ect. On top of that, business account, charities, and the usual HIGH taxes on income if you are lucky enough to make anything at all. Of course I have not mentioned everything. So, what the Governor is saying is, "let's hurt the housing a little more and see what happens" Well, there's logic for you. I am totally against this and anybody, including the Governor will not get my support in the future. Is Government ever going to let us keep anything we work so hard for? This idea puts the all existing and potential property owners into more difficult financial circumstances and Realtor's going....can you bleed me dry some more? Has he and His adviser's really thought this through? I think not.

Not a Socialist | 7:22 p.m. Jan. 12, 2009

BAD IDEA! BAD IDEA!

Berna | 7:26 p.m. Jan. 12, 2009

We are struggling with affordable housing now, how will we have any if we add more taxes to sale or build a home, home buying is a ladder the first time home buyer buys there first home and then that seller moves up and so forth but how can we have move ups if the first time buyer can't afford to buy because of all the taxes

thinking for myself | 7:30 p.m. Jan. 12, 2009

What happened to your promise to leave the State in better shape than you found it? You yourself have remarked that the housing and Real Estate industry make up between a quarter and a third of our economy, it's already getting hammered and some of your talking heads come up wih this BRILLIANT idea? Keep trying to bring in that out of state business though. It'll be all you have left when we all have to leave to make a living somewhere else. Guess those people that call us the best run state in the country should have waited to see what would happen when things got tough and we needed good ideas from the Executive branch...

Bonnie Johnson | 7:30 p.m. Jan. 12, 2009

You must be kidding how are we to keep a roof over our own families heads. Buyer will just be push beyond what they can afford. This is not legal or fair taxtion. Didn't our fore fathers come to this country to escape this unfair practice? Where is the our freedoms heading? Please don't charge me anymore, I am already stretched in my pocket book!!! This will push people over the the top.

Dying Realtor | 7:48 p.m. Jan. 12, 2009

My boys and I are in the housing industry....Please don't make it any worse...Tax the cigarettes,maybe some will stop smoking and save their lives........

Gary Kapp | 7:54 p.m. Jan. 12, 2009

I am a non smoker but I think that increasing tax on cigarettes is totally non sense. The reason I feel this way is cigarettes is a very addictive habit that affects mostly people in poverty. If you want to drive more people into homeless shelters and increase the welfare rolls and destroy any poor person's ability to survive just cigarette tax them further into the poor house. I don't think they will give up the habit even if they have to steal to buy cigarettes.
The taxing of professional legal, accountant, and real estate services is also a way to compound our economic problems. Professional service tax on the consumer could be devastating. The cost of professional services are already at an all time high. It just doesn't make any sense.

Taxed to Death | 8:33 p.m. Jan. 12, 2009

This is a bad Idea to tax services. What about what we pay already? Cut programs , The Government CANNOT be all things to every person.... Who is the Government? Supposedly the People....? We have got to get back to a Self Reliant Society. I am tired of paying so some other person can sit at home and not work like I have to. It cannot be a womb to the tomb society. The Government (The People) cannot afford it anymore.. I lost my job because I got hurt on the job. I have not been able to work a regular job since because of the pain I have and I refuse to be medicated to death. But I am not on Disibility, because I fell there is something I could do. Its hard to make it as a Real Estate Agent with another tax so the Government can grow some more. The government needs to cut itself first. and then cut again...

Jack in St. Georged | 8:34 p.m. Jan. 12, 2009

It was only a couple of years ago when Utah Government was wondering what to do with all of its surplus cash! The wise polititians couldn't possible save it for more lean times, no they created new programs that continue to require funding. People are loseing their homes and jobs and our Governer whats to increase gasoline tax, sin tax and service tax. A tax on service would untilately lead to a tax on home sales which would put the final nail in the housing market coffin.

Ronald G Stephenson | 9:28 p.m. Jan. 12, 2009

Has anyone considered cuting costs. I know in my own personal finacing I have to cut costs.

Suzi DeHaan | 9:35 p.m. Jan. 12, 2009

I feel this is a bad idea and would really hurt the already struggling economy, those of us trying to make a living, and already pay alot of taxes are going to be killed by something like this. We can't make it now and are losing our homes, jobs, retirement, 401K's, standatd of living and are too old to start over. Who's going to give us a break.
We have worked very hard all of our lives and now stand to loose everything if this economy dosn't get fixed.

Leslie Riddle | 9:37 p.m. Jan. 12, 2009

RE: Taxing Services
Taxing services is a concept that hurts the economy further. While sales tax on food is a painless way to raise revenue, why would we want to make getting valued services more painful? In these times when we seek the service of a professional ï¿½like an attorney or even a realtorï¿½more often than not, we are already in some kind of financial distress.

Why would we add to that distress? Does anyone really think that those providing service wonï¿½t pass the taxes on to the end-user? Additional costs may cause citizens to not seek professional help. Why would we discourage people from seeking professional help?

Whoever thinks that those seeking professional help have ï¿½deep pocketsï¿½ needs to pay more attention!

Keeping a stable base, having at least something we can count on, would be helpful!

Why donï¿½t we cut the pay of our government employees and our elected officials instead? Donï¿½t tax services!

dkas101 | 9:40 p.m. Jan. 12, 2009

Bad idea.. Ditto on the majority responses..

Robert Brown | 9:47 p.m. Jan. 12, 2009

Taxing services like these is a terrible idea... make it more difficult and expensive to buy a house now, and see where the housing market ends up in another year.
Whatever happened to conservative principles?

jilla | 10:02 p.m. Jan. 12, 2009

When taxing services, you are taxing that same entity serveral times. For their supplies, for the gas they use, for the vehicle they drive for the property they work in and then the service. They will be taxed over and over. NOT OKAY. It would force the cost of all services to inflate. It would hurt everyone.

Dianne Egbert | 10:12 p.m. Jan. 12, 2009

I am a Realtor and feel that we already pay state and federal taxes. Closing on a house is an expensive proposition for buyers who have to put money into escrow accounts to pay sales ta. How much tax can one industry bear. My husband and I are builders and every step of construction has taxes already. It would be a very big burden on home prices to add sales tax on the professional services as well. Who does it include? In a transaction on a house are the title people, the appraisers, mortagage people, insurance people, inspectors,lawyers who review big transactions and two realtors all going to be paying sales tax on their services?That can only add to the cost of buying. Already we pay building permits and abatment fees and property tax plus acessments for water and sidewalks etc in older neighborhoods. Layers and layers of taxes on one transaction is an unfair burden.

PCDC | 10:18 p.m. Jan. 12, 2009

HORRIBLE idea, for reasons already mentioned...specifically, the buyer/consumer will end up taking the hit. Never mind the effect on small and sole proprietor CPA's, etc. when people stop using these services due to the increased cost. Obama is proposing tax cuts and Huntsman is proposing a new tax?!? WOW...

VAL | 10:22 p.m. Jan. 12, 2009

Lets keep in mind that the governor has said he is not running again. So lets stand up people and get busy and write letters to our legislators-call them-tell friends and family to get busy-calling-emailing and writting and let those know that may run again we will be watching how they vote on this ridiculous idea (if it gets that far). If we stand by and do nothing then we get what we deserve. These comments today are incredible and show much thought. Put these thoughts where they should be-to the people who will look at this bad idea and can vote yes or no. Our livlihoods and families well being is at stake here. Huntsman will never have to worry if his family will suffer from bad legislation.............

Jack Walters | 1:20 a.m. Jan. 13, 2009

The big problem with our economy and problems we currently have are because of crazy ideas like this. We need to realize that these tax costs will be passed on to the people they mean to help. Lets get honest and to the point people. The economy need tax breaks not hikes. THAT IS HOW YOU GET OUT OF RECESSIONS.

Jerry | 6:37 a.m. Jan. 13, 2009

Dont tax services. housing is already too expensive. The cost of medical services need to go down not up. Life needs to be less complex.

Debbie | 6:45 a.m. Jan. 13, 2009

Taxing services would put every home buyer at a loss right off the get go why would you do this? I understand that Utah is run on efficiency but this is ridiculous. Most Real Estate agents are dealing with loses now you want to add more taxes to are already lose of selling or buying homes. I have the greatest loss this last year. I would appreciate if Governor Huntsman would look at this overall picture and have some compassion for the Real Estate agents which are struggling already and this would just add more to our already loss and our clients loss as well. Pleaase re think this over. From a concerned agent in Utah.

Sherry | 7:20 a.m. Jan. 13, 2009

I say no on taxing services. It will make it that much harder for anyone to buy a home. We all know when the housing market is not selling it affects everyone. I appreciate your efforts to make this state better, but I do not believe taxing services, is the way to go.

Cache County | 7:48 a.m. Jan. 13, 2009

Stupid idea. Just cut the FAT and pet projects out of the budget. Zero based budgeting may help.

FROG | 8:26 a.m. Jan. 13, 2009

I feel like a FROG!!! IN THE POND. Stop looking to us for money, get a buget and lean to make money yourself.

Ronnie Vause | 8:38 a.m. Jan. 13, 2009

Any new tax(and it is a TAX)will only deter any recovery and make the start of any "boom" slower in arriving.Most taxes are just added on to what the consumer pays, so the public picks up the tab. What say try something new, CUT SPENDING ! ! I know the legislature is already looking at this, let's remind them they were elected to look out for our best interests, or maybe we can send someone else to SLC next time.

Carolyn Chynoweth | 8:47 a.m. Jan. 13, 2009

Please do not consider the tax on services. It will kill us as realtor's and other service oriented business. I SAY WITH POWER AND PASSION " NO TAXES ON SERVICES" Maybe we need a new Governor as much as I have thought he is so great as a governor and a person.
Carolyn Chynoweth

fedup | 8:48 a.m. Jan. 13, 2009

Please I canï¿½t afford any tax increase, Iï¿½m taxed out and tapped out, and trying to raise taxes on Services and Cigarettes is unfair.

Over-burdened | 8:53 a.m. Jan. 13, 2009

Taxing services such as housing would require many people to pay more of their incomes in taxes and also require them to pay much more when they purchase housing. At a time when people are just trying to survive, with all the additional costs added to cover the additional taxes onto the already high price of a home, that helps us how?

Joseph | 8:56 a.m. Jan. 13, 2009

The answer to problems is to simplify not complicate. In economic hard times and even in economic good times the answer is to make doing business easier and safer. Every time big government tries to master big business it is like water off a ducks back and that burden is immediately passed down to the middle class and the poor. Smaller businesses are already almost crushed. REDUCE SPENDING and give the little people the chance to fight for themselves. HELP small businesses instead of hurting them. Give them greater freedom instead of government regulation and tax.

Joan, a 30 year + Realtor | 9:20 a.m. Jan. 13, 2009

No to service taxing. Consider who would have to tax and who that would affect - medical, housing (construction, selling, buying and it's services), AND everyday interactions - all of that is layer upon layer taxing. Here is a suggestion that we never hear - remove ALL TAXES - gas, food, retail etc and charge only income taxes WITH TOTAL TRANSPARENCY in it's distribution. In other words a budget sheet to match ALL distribution of state gathered funds. Right now nothing gathered is totally clear on where it goes - road taxes are a perfect example. For years it went into general funds use ... I have been a practicing Realtor for over 30 years and have paid all taxes including my share of employer taxes and I am sure that other self-employed professionals and small business owners are in the same situation I am ... OVERTAXED

Brian- Realtor | 9:36 a.m. Jan. 13, 2009

This is not a good idea for a host of reasons. It is taxing a minority group of people. It will hurt and already hurting housing industry. New taxes and raising taxes are not the answer to a troubled economy and never have been.

Mat | 9:51 a.m. Jan. 13, 2009

No to the service tax idea. Doubled up taxation in its worst form. Especially bad for home owners

Southern Utah Realtor | 9:55 a.m. Jan. 13, 2009

Stop and think about it: service providers, like Realtors, already pay income taxes on the commissions we earn. Sellers already pay capital gains taxes on any gains on a sale. Buyers pay taxes on the property. Adding another tax at the point of sale will cause housing prices to go up and become unattainable for more people. We need to do things like make the $7500 tax credit a non-payback credit and expand it to more people buying homes. We don't need another tax added to transactions.

GS | 9:55 a.m. Jan. 13, 2009

THREE CONCEPTS: 1. Flat Tax 2. Cut Spending
3. NO TAX ON SERVICES.

Crandall Thomson | 10:02 a.m. Jan. 13, 2009

Good idea lets tax an already burdened economy! Thatï¿½s the smartest thing I have ever heard right next to Lets jump off that bridge, or lets drive down the freeway at midnight with our lights off. Come on Mr. Huntsman, look at your history, the way an economy gets out of bad shape is not by adding more burden on the consumers but to let them spend. Why donï¿½t we cut your pay check one small cut in your and other government super heads would do the something with much less burden. Oh but we would not want to see you have to eat at a cheep burger joint, or God forbid cook your own food! GET A CLUE MORE TAX IS NOT THE KEY.

Tom Realtor | 10:03 a.m. Jan. 13, 2009

That would STOP! Companies from moving there Business to Utah!also there employees. Would you really want to stop job growth in Utah as well? Bad Idea.

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