California Tax on Labor Services

  • Thursday, 15th March, 2018
  • 13:23pm
CalABC California Automotive Business Coalition

For Immediate Release

Big Push in Sacramento to Charge Tax on Labor Services


Sacramento, CA March 14, 2018 A new bill SB 993 by State Senator Hertzberg (D-18th District) is looking to levy a tax on all labor services which have been up to know, not subject to sales tax.  This would include most services you participate in such as:

  • Automotive Services
  • Hair Salons
  • Professional Services

This would impose a percentage of the sale price of the service, although the actual percentage is unspecified. This could easily add approximately 8% to the consumers repair bill.

The argument for the bill is that it would provide much needed revenue to off-set reductions in other areas such as federal programs. 

CalABC is opposed to the bill because there is no specific plan for its use and it does not include an exact percentage that would be imposed.  We see this as just another revenue source to be exploited without any safe guards for the public.  Not good policy.

CalABC is an automotive industry group that looks to foster legislation and regulation in Sacramento to better serve the public.  In addition, we are focused on education and environment issues that affect the great state of California

Click this link and we will send you more details on this NEW TAX on service labor bill.

ALSO, Review CalABC's Position on 24 Bill's That Will Effect Your Business

Register First, Then Click Here, February 20, 2018 STATE LEGISLATIVE BILL REPORT 



Johan Gallo

Executive Director

California Automotive Business Coalition (CalABC)

Voice: 916-447-8175

Fax: 925-369-0420




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