Realtors seek ballot measure to ban taxation of services

By Howard Fischer | Capitol Media Services via Arizona Capitol Times

The Arizona Association of Realtors is trying to forever block state lawmakers from expanding the state sales tax.

An initiative launched Friday proposes to constitutionally prohibit a sales tax from being imposed on services. Backers need at least 225,963 signatures by July 5 to put the issue on the November ballot.

With few minor exceptions, there is no such levy now. Instead, this would take that issue off the table even as lawmakers may have to look to expand the sales tax base, particularly as consumers move from purchasing tangible items to buying services online.

The campaign is being run under the Banner of Protect Arizona Taxpayers. Wes Gullett, a campaign consultant, said the initiative will be “supported by small businesses that are concerned about a potential huge tax burden.”

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