SPEC Kills Bad Tax Bill, But Another Looms

SPEC logoThe California Spa And Pool Industry Education Council (SPEC) has prevailed in its efforts to protect the state’s pool service professionals from a law requiring them to collect sales tax for their services.

California’s AB 2540, a bill introduced by Assembly member Mike Gatto, seeks to impose a sales tax on certain services. It listed “pool maintenance” as one of its targets.

SPEC took an immediate and active opposition to the measure, and sent lobbyists John Norwood and Erin Norwood to meet with the author of the bill. In addition, they lobbied every member of the Assembly Revenue & Taxation Committee to explain how the bill would adversely effect the spa and pool service industry. SPEC members were urged to submit grassroots letters to the author and the Assembly Revenue & Taxation Committee as well. 

After weeks of lobbying, SPEC advocates ultimately convinced the author to remove pool maintenance from the list of services where sales tax would apply. With this amendment, SPEC removed its opposition to the bill.  

“While we are very happy about the victory at hand, the fight against service taxes is not over,” stated John Norwood, president of SPEC. “A second proposal, AB 1963, is still pending. AB 1963 would impose a blanket 4 percent tax on all services, except for medical, educational, auto repair, tax preparation, legal and agricultural services.

“We are asking pool service professionals and their employees to write a letter to Assembly member Huber registering your opposition. In addition, send a letter to the members of the Assembly Revenue and Taxation Committee if you live or work in the district of one of the members of this committee."

SPEC has provided a template for industry members to use in writing letters to committee members 

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