Thursday, October 27, 2005

HB 1929: Tax on Services

H.B. 1920, P.N. 2521 (ROHRER) This would amend the Tax Reform Code, Act 2 of 1971, P.L. 6.
This would have non-medical services subject to the sales and use tax.
The sales and use tax would be reduced from 6% to 5%.
The sales and use tax exclusion would be extended to include retail sales to private schools, parochial schools, and home education programs.

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Architects, engineers, geologists, soils scientists and construction managers provide professional services utilizing a highly educated and specialized workforce. Our services are provided for building and infrastructure design, environmental protection and construction management projects, with a very high level of customization for each project. These are not commodities purchased at retail, at which a sales and use tax should be targeted. The level of education, specialization, and licensure of our workforce is not unlike that of the medical profession, who are excluded from this tax.

Therefore, I urge the Legislature to specifically exempt PROFESSIONAL ARCHITECTS, ENGINEERS, GEOLOGISTS, SOILS SCIENTISTS AND CONSTRUCTION MANAGEMENT SERVICES from the proposed sales and use tax.

 
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