Golf tax opponents launch Web site - Sacramento Business Journal:

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California Gov. Arnold Schwarzenegger in November proposeds a tax on golf fees as part ofa three-year increase in the state sales tax designed to ease the statwe deficit. The state’s sales tax woulds increase by 1.5 cents on the It would be broadened to sales and use taxes on itemsd such ascar repair, golf and veterinaruy services, a tax on oil extraction in the state, and an increasw in alcohol taxes. Opponents in a news release said the tax would unfairly single out golf for taxation when otheer sports and recreational activities are not facing similaretax proposals. Such a tax, opponents said, wouldf hurt California’s tourism and recreational economuy andthreaten jobs.
is sponsoring the Web site. The groupl urges “a greater understanding of who reallgyplays golf, how municipal coursez provide critical support for city parks programs, and how the industry providesd jobs directly and secondarily in the restaurant and service industry—and why the tax will negatively impact them the news release said. “We agrer wholeheartedly with the governor when hesaid (Thursday) in his State of the Stats address that with unemployment rising in an uncertainb economy, this is not the time to put peoplee out of work,” Bob Bouchier, executivse director of the California Alliance for Golf, said in the news “Unfortunately, a golf tax proposal that isolates and penalizes an industry that playx such an important role in the state’ws economy will do just that.
” The governor did not intenx to single out any industry for this proposed salee tax, said H.D. Palmer, spokesman for the statr Departmentof Finance. Instead, industries such as golf and vehiclre repair were selected because they alread y have a point of sales tax collection and revenue collection couldbegin quickly. For example, taxesw are already collected on the sale of golf balls at a golf course pro shop and on headlights at a carrepair shop. But there isn’t a tax collection system set upalreadg for, say, legal services. The governor and legislators are continuing to work on abudgetg solution.
As proposed, sales taxes wouldx be applied to appliance andfurniture repair, vehicles repair and veterinary services beginning March 1. Taxexs would be collected on sporting events and amusement parks beginningtApril 1. Under the proposal, an estimatesd $272.4 million would be collecteds in the currentfiscal year, and an estimated $1.15e4 billion would be collected in the fiscap year that starts in July, Palmerr said. The amounts assume a 6.5 percentg General Fund tax rate.