Sales tax on services avoided for now.
CalCPA's advocacy team opposed two serious proposals to extend sales tax on services that were introduced in the Legislature this year. AB 2540 (Gautto) and AB 1963 (Huber) have both been significantly amended to remove any serious and immediate threat.
[ILLUSTRATION OMITTED]
While sales taxes on the services of CPAs and other professionals may have been avoided for now, the threat still remains. The governor is banking on voters passing his tax increase initiative that will placed On the November. ballot; however, its passage is still uncertain.
If the governors plan fails and no workable longterm budget solution takes shape in the coming months...
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