Memo #
26007

ICI Letter to California Opposing Tax on Services
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[26007]

March 29, 2012

TO: ADVISER DISTRIBUTOR TAX ISSUES TASK FORCE No. 3-12
TAX MEMBERS No. 15-12 RE: ICI LETTER TO CALIFORNIA OPPOSING TAX ON SERVICES

 

The Institute submitted the attached letter in opposition to California Assembly Bill 1963 (Huber), [1] which would expand the state sales tax to all services, with limited exceptions. The letter argues that, if enacted, the sales tax could:

  • Impose additional costs on California investors seeking to save for their retirement and other long-term needs through mutual funds;
  • Place California-based mutual fund firms operating in this nationwide industry at a competitive disadvantage; and
  • Be extraordinarily difficult, if not impossible, to administer efficiently and fairly.

 

Karen Lau Gibian
Associate Counsel

Attachment

endnotes

 [1] AB 1963 (Huber) can be found  here.