A tax on some services approved by state lawmakers on Oct. 1 is drawing mixed reviews from local business owners.
Services to be taxed at a 6 percent rate beginning Dec. 1, according to news reports, include a variety of services considered luxuries, or not essential for day-to-day living. The services tax is one-half of a plan to balance the state budget, which has a $1.75 billion deficit. The other half of the plan includes raising the state income tax from 3.9 percent to 4.35 percent.
‘I wish they would have done an 8 percent sales tax on retail items already taxed, instead of adding a 6 percent sales tax on the services they chose,? said Kathy Zardus, owner of The Beach House, 950 S. Ortonville Road. ‘Then it would have been everyone, instead of them picking on people who want to make themselves look and feel better.?
The Beach House offers manicures, massages, and tanning services, all affected by the new tax.
Jessica Arundel, owner of In Motion Anytime, 4 N. Ortonville Road, will also be affected as a personal fitness trainer.
‘I think with (state legislators) pushing for better healthcare, why are they going to make it harder for people to be healthy?? she asked. ‘You’re discouraging people. It’s backward. They’re con-tradicting themselves.An extra few dollars could make the difference in an economy like this.?
Domenick Wayne, owner and chiropractor at Back to Health Chiropractic, 9037 S. State Road in Goodrich, saw good and bad in the new tax, which will be applied to massage services at his business.
‘The good is, the money needs to be put back into our state’s economy,? he said. ‘I don’t like being taxed, but the money has to come from somewhere… However, now it’s a matter of keeping track of taxes, which will mean an increase in accounting costs. This will also increase the small ownership’s responsibility to pay these taxes, so it is an added headache. Our state is in shambles, so if we need to do something to help out, we will.?
Rebecca Kelley contributed to this story.