Dear Senator (or Representative) -
In keeping up with the ongoing debate and negotiations for meeting budget shortfalls in NC, including potential tax increases, I have been made aware that part of these proposed increases could include imposing sales tax on services including therapeutic massage and other "pleasure services" such as spa treatments. I am not in support of this change and believe that as a consultant and educator who works statewide and nationally in the massage and spa industry, I am well informed to speak on behalf of massage therapists, bodyworkers and other spa or personal service professionals.
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 an 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 treatments and other personal services are subject to the tax. Many of these professionals and their businesses are already suffering a great deal as a result of the high unemployment and layoffs in many parts of the state. These services are the first thing to drop out of most people's budgets, especially if they see it as a bit of a splurge. Even some of most wealthy clients that get massage, bodywork or other personal services for stress management, pain relief or general self care have cut back or given up these treatments to save money. As a result, many massage or spa/salon businesses have had a huge loss in revenue and it has become a huge hurdle just to stay in business. I closed my own spa, Inspire Skin & Body, in March due to the economic conditions as have other similar businesses in my area (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 as have others in that area and around North Carolina.
Others personal service businesses in Greensboro have been forced to downsize or cut staff and/or pay due to the strain of local financial woes suffered by their clients. I have heard similar stories from spa owners and the related service providers in our state, particularly those in areas that have high unemployment such as Guilford County where I live.
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 close. Six and three quarters percent of a price increase on a seventy dollar massage may not seem like much to some, but I can guarantee that in some cases, the cost will not just be "passed on" to the consumer. Many massage therapists, bodyworkers and spas of all kinds that are already struggling to keep their doors open will cut or discount their service prices by an equal amount to keep prices the same and clients coming in.
For people who are already struggling, this could mean a pay cut of an equal amount or more if clients decide the sales tax on services means they will have to again eliminate these extras from their budget. As this happens, I foresee more spas and salons and individual practices closing. As many of these owners operate one-man shops or do not have unemployment insurance on themselves, they may not even qualify for unemployment benefits if they lose their jobs.
I have posted details about this issue as well as comments by others on my blog at the links below
http://blog.spalutions.com/. I encourage you to read them and consider the full impact and fairness of your decision before you vote on the tax increase. Here are two specific links about the issue:
Please feel free to contact me with any questions or comments. I appreciate your willingness to consider my professional opinion and request to vote against a sales tax increase on therapeutic massage and other personal services.
Sincerely -
Felicia Brown, LMBT
Owner & Spa Consultant ~ Spalutions!
Certified Guerrilla Marketing Coach
336.508.0790 ~ Direct
Follow me on Twitter:
http://twitter.com/FeliciaBrown
|
Senate Finance Committee |
|
|
|
|
|
|
|
|
Senator |
District Telephone |
District Email |
Counties |
|
CHAIRS: |
|
|
|
|
David Hoyle |
919-733-5734 |
avid.Hoyle@ncleg.net">David.Hoyle@ncleg.net |
Gaston |
|
Daniel Clodfelter |
919-715-8331 |
aniel.Clodfelter@ncleg.net">Daniel.Clodfelter@ncleg.net |
Mecklenburg |
|
Clark Jenkins |
919-715-3040 |
Clark.Jenkins@ncleg.net |
Edgecombe, Martin, Pitt |
|
VICE CHAIRS: |
|
|
|
|
Larry Shaw |
919-733-9349 |
Larry.Shaw@ncleg.net |
Cumberland |
|
Fletcher Hartsell |
919-733-7223 |
Fletcher.Hartsell@ncleg.net |
Cabarrus, Iredell |
|
MEMBERS: |
|
|
|
|
Charlie Albertson |
919-733-5705 |
charlie.albertson@ncleg.net |
Duplin, Lenoir, Sampson |
|
Austin Allran |
919-733-5876 |
austin.allran@ncleg.net |
Catawba, Iredell |
|
Tom Apodaca |
919-733-5745 |
tom.apodaca@ncleg.net |
Buncombe, Henderson, Polk |
|
Bob Atwater |
919-715-3036 |
bob.atwater@ncleg.net |
Chatham, Durham, Lee |
|
Phil Berger |
919-733-5708 |
phil.berger@ncleg.net |
Guilford, Rockingham |
|
Dan Blue |
919-733-5752 |
dan.blue@ncleg.net |
Wake |
|
Charlie Dannelly |
919-733-5955 |
charlie.dannelly@ncleg.net |
Mecklenburg |
|
Tony Foriest |
919-301-1446 |
tony.foriest@ncleg.net |
Alamance, Caswell |
|
Ellie Kinnaird |
919-733-5804 |
ellie.kinnaird@ncleg.net |
Orange, Person |
|
Floyd McKissick |
919-733-4599 |
floyd.mckissick@ncleg.net |
Durham |
|
Joe Sam Queen |
919-733-3460 |
joesam.queen@ncleg.net |
Avery, Haywood, Madison, McDowell, Mitchell, Yancey |
|
David Rouzer |
919-733-5748 |
david.rouser@ncleg.net |
Johnston, Wayne |
|
R.C. Soles |
919-733-5963 |
RC.Soles@ncleg.net |
Bruswick, Columbus, Pender |
|
Harris Blake |
919-733-4809 |
Harris.Blake@ncleg.net |
Harnett, Moore |
|
Julia Boseman |
919-715-2525 |
julia.boseman@ncleg.net |
New Hanover |
|
Andrew Brock |
919-715-0690 |
andrew.brock@ncleg.net |
Davie, Rowan |
|
Harry Brown |
919-715-3034 |
Harry.Brown@ncleg.net |
Jones, Onslow |
|
Don East |
919-733-5743 |
don.east@ncleg.net |
Alleghany, Stokes, Surry, Yadkin |
|
Linda Garrou |
919-733-5620 |
linda.garrou@ncleg.net |
Forsyth |
|
Eddie Goodall |
919-733-7659 |
eddie.goodall@ncleg.net |
Mecklenburg, Union |
|
Steve Goss |
919-733-5742 |
steve.goss@ncleg.net |
Alexander, Ashe, Watauga, Wilkes |
|
Neal Hunt |
919-733-5850 |
neal.hunt@ncleg.net |
Wake |
|
Martin Nesbitt |
919-715-3001 |
martin.nesbitt@ncleg.net |
Buncombe |
|
Jean Preston |
919-733-5706 |
jean.preston@ncleg.net |
Carteret, Craven, Pamlico |
|
William Purcell |
919-733-5953 |
william.purcell@ncleg.net |
Anson, Richmond, Scotland, Stanly |
|
Tony Rand |
919-733-9892 |
tony.rand@ncleg.net |
Bladen, Cumberland |
|
Bob Rucho |
919-733-5655 |
bob.rucho@ncleg.net |
Mecklenburg |
|
Josh Stein |
919-715-6400 |
josh.stein@ncleg.net |
Wake |
|
Richard Stevens |
919-733-5653 |
richard.stevens@ncleg.net |
Wake |
|
A.B. Swindell |
919-715-3030 |
AB.swindell@ncleg.net |
Nash, Wilson |
|
Jerry Tillman |
919-733-5870 |
Jerry.Tillman@ncleg.net |
Montgomery, Randolph |
|
David Weinstein |
919-733-5651 |
david.weinstein@ncleg.net |
Hoke, Robeson |
|
House Finance Committee |
|
|
|
|
|
|
|
|
SENIOR CHAIR: |
|
|
|
|
Paul Luebke |
919-733-7663 |
aul.Luebke@ncleg.net">Paul.Luebke@ncleg.net |
Durham |
|
CHAIRS: |
|
|
|
|
Pryor Gibson |
919-715-3007 |
pryor.gibson@ncleg.net |
Anson, Union |
|
William Wainwright |
919-733-5995 |
william.wainwright@ncleg.net |
Craven, Lenoir |
|
Jennifer Weiss |
919-715-3010 |
jennifer.weiss@ncleg.net |
Wake |
|
VICE CHAIRS |
|
|
|
|
Dewey Hill |
919-733-5830 |
dewey.hill@ncleg.net |
Brunswick, Columbus |
|
Hugh Holliman |
919-715-0873 |
hugh.holliman@ncleg.net |
Davidson |
|
Julia Howard |
919-733-5904 |
julia.howard@ncleg.net |
Davie, Iredell |
|
Daniel McComas |
919-733-5786 |
danny.mccomas@ncleg.net |
New Hanover |
|
Larry Womble |
919-733-5777 |
larry.womble@ncleg.net |
Forsyth |
|
MEMBERS: |
|
|
|
|
Kelly Alexander, Jr. |
919-733-5778 |
kelly.alexander@ncleg.net |
Mecklenburg |
|
Curtis Blackwood |
919-733-2406 |
curtis.blackwood@ncleg.net |
Union |
|
John Blust |
919-733-5781 |
john.blust@ncleg.net |
Guilford |
|
Van Braxton |
919-715-3017 |
van.braxton@ncleg.net |
Greene, Lenoir, Wayne |
|
Becky Carney |
919-733-5827 |
becky.carney@ncleg.net |
Mecklenburg |
|
Tricia Cotham |
919-715-0706 |
tricia.cotham@ncleg.net |
Mecklenburg |
|
Bill Faison |
919-715-3019 |
bill.faison@ncleg.net |
Caswell, Orange |
|
Dale Folwell |
919-733-5787 |
dale.folwell@ncleg.net |
Forsyth |
|
Larry Hall |
919-733-5872 |
Larry.hall@ncleg.net |
Durham |
|
Sandra Hughes |
919-733-5754 |
sandra.hughes@ncleg.net |
New Hanover, Pender |
|
Darrell McCormick |
919-733-5654 |
darrell.mccormick@ncleg.net |
Iredell, Surry, Yadkin |
|
William McGee |
919-733-5747 |
william.mcgee@ncleg.net |
Forsyth |
|
Bill Owens |
919-733-0010 |
bill.owens@ncleg.net |
Camden, Currituck, Pasquotank, Tyrell |
|
Jonathan Rhyne |
919-733-5782 |
jonathan.rhyne@ncleg.net |
Lincoln |
|
Earl Jones |
919-733-5825 |
earl.jones@ncleg.net |
Guilford |
|
Deborah Ross |
919-733-5773 |
deborah.ross@ncleg.net |
Wake |
|
Mitchell Setzer |
919-733-4948 |
mitchell.setzer@ncleg.net |
Catawba, Iredell |
|
Paul Stam |
919-733-2962 |
paul.stam@ncleg.net |
Wake |
|
Edgar Starnes |
919-733-5931 |
edgar.starnes@ncleg.net |
Caldwell |
|
Thom Tillis |
919-733-5828 |
thom.tillis@ncleg.net |
Mecklenburg |
Dear Felicia (et al)
Typically states (sales) tax goods not services, and some states exempt goods that are necessities. When you go to a mechanic there is sales tax charged on the parts but NOT the labor.
Service industries have long been exempt from charging sales tax, and even IF you think it is fair to charge sales tax on services (I don’t but) they should not be able to cherry pick which ones get taxed and which ones do not!
Best Wishes & Healthy Profits
Skip Williams
skip@resourcesanddevelopment.com
Reply to this
Thanks Skip. I couldn't agree with you more, especially since "pleasure services" such as massage therapy, facials and even hair treatments like coloring and perms are the first ones people eliminate from their budgets when times are tough. I appreciate your comments and your willingness to spread the word to your spa industry clients and contacts in NC.
Felicia
Reply to this