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State Sales Tax Expanded To Cover Additional Items

Oct 13, 2006

As members are aware, earlier this year the State Sales Tax was increased from 6% to 7%, in an effort to raise $1.1billion in new revenue and help balance an estimated $4.5 billion deficit. This increase added hundreds of dollars to the purchase or lease of a new car or truck, among the largest purchases consumers make.

As of October 1, the list of items that will be taxed was expanded to include, among other things, shipping and handling charges, storage space, data processing, non-clothing cleaning services, landscaping, and investigation and security services. The prices of these previously untaxed services, which are used or may be used by dealerships throughout the State, are now 7% more expensive to utilize.