Proposed Taxing Of Contract Cleaning Services
A bill under consideration in the Kansas House Tax Committee would tax service businesses, including cleaning services, according to an article on the Wichita Eagle website. The legislation would require the businesses to pay sales taxes to the state. It’s estimated that the change would generate about $22 million next fiscal year and $43 million the year after.
Supporters of the legislation said it would broaden the tax base, with the hope that eventually sales tax rates could be lowered on all businesses.
“This is a sales tax that evens the playing field,” said Rep. Kristey Williams, R-Augusta.
Businesses that provide services listed in the bill are providing something to the customer in the same way a business that sells physical products does, Williams said.
Opponents said the bill would impose sales tax on business-to-business transactions.
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