Big Week for the Governor’s Gross Receipts Tax
Lots of discussion is expected this week about the Governor's proposed Commercial Activity Tax.
The House Ways and Means Committee is set to spend two days to dive into what's called a "gross receipts tax". The CAT is a sales tax businesses would pay on their transactions. So far there’s very little support for the proposal. Franklin Representative Sam Jones is hoping he can get lawmakers to take a look at the details before making a decision.
Jones says so far this is the only plan that’s been presented in this session to deal with the $1.3 billion fiscal cliff in 2018, when the extra penny of the sales tax and other temporary taxes expire.
The biggest opposition to the Commercial Activity Tax comes from businesses, who say it’s a burdensome tax at a time when the state’s economy is struggling. But Jones says something must be done to address looming budget shortfalls and provide a predictable revenue stream.