Michigan therapists...

[humblepie]

did any of you see the news this morning regarding the proposed sales tax on various services in an effort to solve the budget problem? Massage is on the list...and I have a problem with that. How do they expect to tax something that they don't even regulate as a state? They keep rejecting bills to pass it yet they want everyone to pay up to fix their problems?

Here is the article about what is taxed and what isn't if anyone is interested.

http://www.freep.com/apps/pbcs.dll/article?AID=/20071001/NEWS06/710010329

 

[LifeIsPeachy]

thanks Rebecca -
I rushed right here as soon as I heard the news and you had already beat me to posting it!!!

So now my question to therapists in other states who tax massage - how exactly do we go about this? What kind of hoops do we need to jump through to do this? :roll:
I am so not excited.

 

[IReallyDunno]

i heard a while ago that this was possibly going to happen. this tax really ticks me off! our clients are really going to take a hit in their pocket books with this 6% tax. and i've got a feeling we're going to take a hit as well by losing some clients who can't afford the increase.

 

[e l i z a ?]

I think you're absolutely right Terab. I was pretty much steaming all day yesterday - my husband and I talked about nothing else but the "state of the state"!
Not only will tax be added on to my rates, but I'm afraid I will need to increase my rates to offset the time, paperwork, & increased tax preperation on my part to do this. I'm afraid it will thin out my book a bit... oh and how convenient they are implementing it Dec. 1 - just in time for Gift Certificate season!!! :evil:

 

[Cladia BAbii :)]

I'm already worried about how this will impact my books, things in August were amazing, it was my best month ever, September, not so much, and October isn't shaping up to be any better, and just when I thought I was finally in a position to move out of my parents house and buy a place of my own, now I've got this looming over me....but seriously, how can they charge this when they don't even make it a state-wide requirement that we be licensed? They don't want to take the time to pass a bill that would require everyone to have the same certifications, but they want to charge us...

One of my clients yesterday told me "I'll just pay you cash then" and when I told him that massage is not regulated by the state, but by each city/county, he said "well then I'm not paying!". He was half joking, but I feel the exact same way.

 

[im_a_goofy_chick]

Where is the hue and cry over the increase in the MI Income Tax - something that affects ALL Mitten State Residents?

The state is about to hike taxes such that someone making $20K a year has to fork over the cost of very pricey massage ($90 if you do the math). Two massages a year for someone making a modest $40k a year.

For a customer to be dissuaded by the sales tax, 6% increase means someone who gets 16 massages a year would have to cut back by 1 per year to maintain the same level of massage expenditure.

Yet the government is taking the cost of one or two massages out of the pockets of every citizen and no one is saying boo!

If you only pay attention to what the politicians are doing when it directly affects you, you will find it is too late to do anything about it.

Show of hands of who voted for the politicians ramming through this tax hike...those are the folks to blame for this fiasco.

 

[Marky D]

I think the thing that bothers me most about this is that they are only taxing certain professions, those that they deem unnecessary. Since when are manicures and facials necessary and massage isn't? I wouldn't have as much as a problem with it if they were taxing everyone. Someone posted on the Detroit Free Press website a good point, instead of making certain industries 6% sales tax, why not have everyone pay 3%?

 

[dont.panic]

I like how Michigan MTs are lumped in with astrologists, numerologists, and escorts! LOL

This sucks all around.

What I want to know is how we go about doing this? Are there new forms to fill out or what? ugh

 

[catnipnbones]

the income tax increase is temporary. it will begin to drop back to 3.9 sometime in the next 4-6 years. i think this sales tax on services will hurt the businesses of michigan.

what i especially do not care for is the scare tactic that was used in order to get this tax passed. it's b.s. that's what the state of michigan gets for voting D. for gov. i didn't do it. and if this has you in an uproar the way it does me, you should find out what your local representative voted and let your voice be heard when it's time for YOU to vote for them & for the gov.! will MI vote her back in? i certainly hope not.

i really feel like the government in the state of michigan is just asking people to leave the state. anything more and they might as well come to our homes and help us pack!

stonegirl- i also thought it was interesting how this tax goes into effect dec 1st. nice timing!

 

[tanzanite]

Here's the latest on the Service tax here in Michigan. Word is out that petitions will be started soon to get it on the November ballot. Not sure where this will all end up, but I, as well as the rest of you are concerned.

http://freep.com/apps/pbcs.dll/article?AID=/20071003/NEWS06/710030403

 

[Tom C]

Sorry, that's the November 2008 ballot.

 

[J2J]

(quoted from the above posted article)

"This is being portrayed as a tax on luxuries, but most of it will be paid by Michigan's job providers on services they need," said Anderson.

I think it's a good point. I didn't know tax preperation is a luxury... (tax preperation is one of the services that will be affected by this). oh now that I know that, I'll look forward to getting my taxes done with the same excitement as an appointment for a massage or facial! Wow, I AM spoiled! :roll:

 

[KingRolfRocks]

http://www.mitaxpayers.org/blog/index.html

 

[Pompal 09.]

I was just at the michigan.gov website looking on how to apply for a sales tax and use license, and there was this link for a list of additional services to charge tax effective Dec. 1, http://www.michigan.gov/taxes/0,1607,7-238-43529-177121--,00.html

and I checked the "personal services" links and it takes you to the US Census guide, and I love how they refer to massage here, http://www.michigan.gov/taxes/0,1607,7-238-43529-177121--,00.html

Massage Parlors. Please!!! Once again, the stigma of "parlor". With all of the proof that massage therapy is an excellent health benefit, we are still lumped in with categories like this.