An Act Exempting Coin-operated Car Washes From The Sales Tax.
Impact
If enacted, the exemption from sales tax would directly decrease the operating costs for coin-operated car washes in the state. Supporters of the bill argue that this tax relief could enhance the financial viability of such businesses, allowing them to reinvest in their operations, improve services, or even pass on savings to consumers. This could potentially result in economic stimulation within the local communities where these businesses are located, contributing to job retention and creation in the service sector.
Summary
SB00046 is a proposed bill aimed at exempting coin-operated car washes from the state sales tax. The bill was introduced during the February session of 2018 by a group of legislators including Senator Frantz and Representatives Floren, Bocchino, and Camillo. The main purpose of the bill is to provide a financial relief measure for businesses operating coin-operated car washes, which are often small enterprises that may struggle with tax burdens affecting their profitability.
Contention
While the proposed bill may have significant support among small business advocates, there could be notable concerns regarding its fiscal implications on state revenue. Critics may argue that granting tax exemptions can lead to a shrinking tax base, which could complicate funding for public services. The debate surrounding SB00046 could hinge on balancing the interests of promoting small business growth against the need for maintaining adequate public funding and services.