State of California and Sales Taxes

The State Board of Equalization had a proposal on their agenda to impose sales tax on all service businesses in California. What this would have done for my clients was to impose a new 7.75% tax on your tax return preparation fee. This July 2008 I met with the Public Affairs Director of Michelle Steel who is a member of the State Board of Equalization. He assured me that this proposal is not up for implementation this tax year. He did not say that this issue is off the table. If you are interested in this issue you can go to the State Board website at www.boe.ca.gov
I will keep all posted on this issue in the future.