There was an article in our local paper today about the debate on how best to handle our budget shortfall, including the possibility of raising various taxes. However, no mention was made of the proposed tax on services such as massage therapy or spa/salon treatments so I felt I had to write them. Who knows if it will be published.

Here is the link for the original article in case you are interested as well as a copy of my letter to the editor which I just sent out. If it gets printed, I will post a link to it in the comments section! Please consider writing a letter to your own local paper as well.

http://www.news-record.com/content/2009/06/27/article/budget_awaits_deal_over_which_taxes_to_raise

Thank you for the article in Sunday's Local section(6/28) about the ongoing debate between the NC House and Senate about how to meet the current budget shortfalls in NC, including potential tax increases of various kinds.Though Sunday's article did not mention it, one of the proposed increases includes imposing sales tax on services from oil changes and hair cuts to therapeutic massage and other "pleasure services" such as spa treatments. I am not in support of this change and want to make sure the public is informed about the potential impact this tax could have on them and the businesses they patronize.

The proposed sales tax on services would affect licensed massage therapists and bodyworkers who are classified as "licensed health care professionals" as stated in NC General Statutes 90. This group of professionals should not be singled out from other health care providers such as chiropractors, MDs or physical therapists just because the therapeutic massage they provide is usually enjoyable. This is especially true since most massage therapy services - even those prescribed by a physician - are not often covered by insurance but are rather a out of pocket expense paid for entirely by the consumer. The addition of a sales tax to the services provided by massage therapists would create an even greater strain on their customers and the businesses that employ therapists in an already difficult economic time.

Similarly, spa and salon services and other personal services are subject to the tax. Many of our local service professionals and their businesses are already suffering a great deal as a result of the high unemployment and layoffs in Guilford County as well as other parts of the state. I closed my own spa, Inspire Skin & Body, in March due to the economic conditions as have other similar businesses in Greensboro. The popular Yoga Cafe closed in June and Passions Salon will be closing in July to name just two in Greensboro. Spa Sublime in Burlington also fell victim to the economy this spring as have others service businesses in that area.

Many personal service businesses in Greensboro have been forced to downsize (Jade Salon, Nails & More Day Spa, Spa Creations by Russ) or cut staff and/or pay due to the strain of local financial woes suffered by their clients. I can only imagine the impact on the rest of the spa, salon and healing arts professionals in our state, particularly areas that have high unemployment such as Guilford County. Adding a tax to personal services such as the ones offered by these businesses and professionals will hurt them even more and force more to lower their prices to make up for the tax or close. As many of these professionals operate one-person businesses, they may not even qualify for unemployment benefits if they shut their doors.

I have posted details about this issue on my blog at the links below http://blog.spalutions.com. Please feel free to direct your members/readers to any of these or to use my comments as you report on the issue. I encourage the News & Record to report more about this facet of the budget issue and ask my fellow readers to get involved and speak out against the tax before our legislators make a final decsion in the next two weeks.

Felicia Brown, LMBT
Greensboro, NC

PS - I have been a licensed massage therapist since 1994 as well as a spa owner (Balance Day Spa and Inspire Skin & Body) and spa consultant/educator. I currently serve on the Day Spa Association board - a national organization the assists spa owners and professionals worldwide.