Sen. Robert M. Hertzberg (D-Van Nuys), introduced as SB 8 immediately after he was sworn in Dec. 1 According to the LA times, it would extend the state's sales & use tax to services. Healthcare and education services would be exempt. So would small businesses with under $100,000 in sales.
According to our local housing assn, this means that Landlords "would be subject to charging a sales tax on rent and paying sales tax on every service provider" that the LL uses on his properties.
If the $100K threshold stands, this would appear to impact large apartment complexes.
Is anyone familiar with this proposed bill?
I am not a tax expert but here is my run down. if you have a gross sales of 100k, and you earn 30% from that, then you are only earning $15/hour. Be aware that all businesses will charge you 8% (may change) the services, that means your contractor, barber, nail salon, tax preparer; if they don't make the 100k mark, they keep that 8%. I don't think you could charge 8% on rent, it is not a service, but you would have to pay 8% for your property management company since they are a service for you. It doesn't say how much they are lowering the personal income tax, probably .1% lol.
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