Publications
Volume 9, Number 1 — November 2005
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This Bulletin addresses recent developments affecting Design Professionals as well as business concerns as important as the specific professional and technical issues they face.
Editors: Richard J. Davies, Esquire and Neil P. Clain, Jr., Esquire
Pennsylvania Proposal to Expand the Sales Tax to Attorneys’ Services
The Pennsylvania House and Senate are presently considering an expansion of the state sales tax as a means to defray the cost of eliminating school property taxes. One area of sales tax expansion that is now on the table is the taxation of legal services. At present, the proposal also includes a reduction of the sales tax from 6% to 5.7% (Senate version) or to 5% (House of Representatives version). Regardless, for the first time, you would have to pay a tax on the legal services that help support your practice.
Obviously, the proposal’s adoption would increase the costs of doing business for all who rely upon lawyers to help them best represent their inter-ests. Certainly, design professionals are among those whose business costs would increase, without increased benefit to them or their counsel. The legal profession is opposed to this proposal and we recommend you join us in voicing opposition. The Pennsylvania Bar Association has a page on its website that makes this easy: http://www.thesoftedge.com/products/congressweb.htm
The first subject listed on this web page is “Compose a Message to Your Legislator Opposing a Sales Tax on Legal Professional Services.” Click on the “Write Your Legislators” button under that subject, and follow the prompts to either download a letter for mailing, or sending an email. The web page will also help you find the names and addresses of your legislators. You may find the “talking points” button on the web page useful in better understanding the substantial arguments that make this proposal both counterproductive and impractical. Of course, you can also call or independently write your legislators. Of course, as we learn more about the proposal’s prospects we shall let you know. In the meantime, we suggest you act to prevent this increase to your costs of doing business.
A Note from the Editors: This Bulletin addresses recent developments affecting Design Professionals as well as business concerns as important as the specific professional and technical issues they face.
©2005 Powell, Trachtman, Logan, Carrle & Lombardo, P.C. This bulletin is intended for general information purposes only and does not constitute legal advice. The reader should consult with legal counsel to determine how laws, suggestions and illustrations apply to specific situations.
