Michelle_Comer
02-10-2010, 02:36 PM
Re-post from Brian Wallace:
I would like to add to this discussion regarding Kansas and the threat of losing the sales tax exemption in that state. CLA has been monitoring all of the bills in Kansas affecting the sales tax exemptions in recent weeks including SB 476, HB 2549, SB 530 and others that would have the effect of repealing the existing sales tax exemption for self-service laundry (as well as many other service industries). We have been in contact with our MO-KAN CLA President, Bob Meuschke, to discuss the best strategy for dealing with this threat including the engagement of a lobbyist. We have identified and vetted an excellent lobbyist there, and are prepared to bring him on board to protect our interests, if needed.
You will be hearing much more about our efforts to protect the sales tax exemptions in the coming days as we are fighting on multiple fronts. There are active efforts to repeal sales tax exemptions in several states at the moment including Kentucky, Kansas, and Illinois. There are also very challenging climates in Michigan, Florida, and South Carolina. CLA has already engaged a lobbyist in Kentucky. The Illinois Coin Laundry Association has engaged a lobbyist in Illinois as well. This is a very busy start to what we believe will be an active year or two, as state budgets crumble and look to repealing sales tax exemptions and other methods to fill their staggering budget deficits.
Perhaps a little history would be helpful as well. CLA has adopted the protection of the state sales tax exemptions as its top legislative priority over the past 30 years. In just the last ten years, CLA has engaged lobbyists in this effort in Michigan, Maine, Florida, Arkansas, Washington, New Jersey, and now Illinois and Kentucky. Hiring of a lobbyist is usually the last step in the process which begins with legislative monitoring.
CLA tracks all bills in all 50 states looking for any adverse legislation. We also monitor all federal legislation as well as all state and federal regulatory activity looking for any movement that could be detrimental to our industry. Between legislative monitoring and the engagement of lobbyists, CLA has spent nearly $250,000 in the past decade to protect the industry in this way.
For 2010, we will be launching a national campaign to raise awareness and solicit donations from the industry to support our efforts to protect the sales tax exemptions. You can imagine that this is an expensive effort and CLA does not have the budget to fund lobbyists on its own.
For those of you in directly affected states, I encourage you to respond to upcoming solicitations for donations. For those of you in states not yet affected, please consider contributing to this effort by joining the association and/or making a donation to our efforts. I have attached a PDF which summarizes our basic sales tax talking points for your information.
There is strength in numbers and while this will be a particularly challenging period for our industry, it is time to band together and protect our businesses. Remember, the average laundry owner will be paying at least $8,000 to $12,000 per store per year in sales tax to their respective states if the exemption is lost.
Brian Wallace
President and CEO
Coin Laundry Association
I would like to add to this discussion regarding Kansas and the threat of losing the sales tax exemption in that state. CLA has been monitoring all of the bills in Kansas affecting the sales tax exemptions in recent weeks including SB 476, HB 2549, SB 530 and others that would have the effect of repealing the existing sales tax exemption for self-service laundry (as well as many other service industries). We have been in contact with our MO-KAN CLA President, Bob Meuschke, to discuss the best strategy for dealing with this threat including the engagement of a lobbyist. We have identified and vetted an excellent lobbyist there, and are prepared to bring him on board to protect our interests, if needed.
You will be hearing much more about our efforts to protect the sales tax exemptions in the coming days as we are fighting on multiple fronts. There are active efforts to repeal sales tax exemptions in several states at the moment including Kentucky, Kansas, and Illinois. There are also very challenging climates in Michigan, Florida, and South Carolina. CLA has already engaged a lobbyist in Kentucky. The Illinois Coin Laundry Association has engaged a lobbyist in Illinois as well. This is a very busy start to what we believe will be an active year or two, as state budgets crumble and look to repealing sales tax exemptions and other methods to fill their staggering budget deficits.
Perhaps a little history would be helpful as well. CLA has adopted the protection of the state sales tax exemptions as its top legislative priority over the past 30 years. In just the last ten years, CLA has engaged lobbyists in this effort in Michigan, Maine, Florida, Arkansas, Washington, New Jersey, and now Illinois and Kentucky. Hiring of a lobbyist is usually the last step in the process which begins with legislative monitoring.
CLA tracks all bills in all 50 states looking for any adverse legislation. We also monitor all federal legislation as well as all state and federal regulatory activity looking for any movement that could be detrimental to our industry. Between legislative monitoring and the engagement of lobbyists, CLA has spent nearly $250,000 in the past decade to protect the industry in this way.
For 2010, we will be launching a national campaign to raise awareness and solicit donations from the industry to support our efforts to protect the sales tax exemptions. You can imagine that this is an expensive effort and CLA does not have the budget to fund lobbyists on its own.
For those of you in directly affected states, I encourage you to respond to upcoming solicitations for donations. For those of you in states not yet affected, please consider contributing to this effort by joining the association and/or making a donation to our efforts. I have attached a PDF which summarizes our basic sales tax talking points for your information.
There is strength in numbers and while this will be a particularly challenging period for our industry, it is time to band together and protect our businesses. Remember, the average laundry owner will be paying at least $8,000 to $12,000 per store per year in sales tax to their respective states if the exemption is lost.
Brian Wallace
President and CEO
Coin Laundry Association