To repeal a use tax exemption on toll free phone services (800-numbers, WATTS lines, etc.) and international calls.   Official Text and Analysis.

To replace the previous version of the bill with one that does not impose a tax on services, but would exempt disabled veterans from the state 6 percent use tax.

To exempt disabled veterans from the state 6 percent use tax. The bill was passed and sent to the Senate as a "vehicle" for a possible tax on some services, but without that actual provision. This was done because bills must "lay over" in the other body for at least five days before being voted on, and if a tax increase is to be approved by Oct. 1 it is necessary to have a "vehicle" bill that has done so.

To impose a 6 percent tax on a wide variety of services, including various personal services, and a number of services used primarily by businesses. Altogether the new tax will take some $750 million. Major components include a $230 million tax on business consultant services, $98 million on "office administration" services, and $50 million on janitorial services, to name just a few. More than half the revenue is from taxing business services. The bill is part of a package to avoid spending cuts in the Fiscal Year 2007-2008 budget; the other major tax increase is to raise the state income tax from 3.9 percent to 4.35 percent (House Bill 5194).

To impose a 6 percent tax on a wide variety of services, including various personal services, and a number of services used primarily by businesses. Altogether the new tax will take some $750 million. Major components include a $230 million tax on business consultant services, $98 million on "office administration" services, and $50 million on janitorial services, to name just a few. More than half the revenue is from taxing business services. The bill is part of a package to avoid spending cuts in the Fiscal Year 2007-2008 budget; the other major tax increase is to raise the state income tax from 3.9 percent to 4.35 percent (House Bill 5194).