Battle continues over tax-related Proposition 126

PHOENIX (KSAZ) -- Election Day is almost two weeks away, and thousands of voters are poring over their early ballots, making their decisions.

Some voters fine one proposition, involving a tax on services, confusing. Both Governor Doug Ducey and his opponent, Democratic candidate David Garcia, are on the same side on this, asking people to vote "No" on Proposition 126. Meanwhile, some service providers who fear new taxes on their services want people to support a ban, and vote "Yes".

Dave Reddish, who owns Regal Cleaners, says he could be taken to the cleaners if people don't vote yes on Proposition 126, as it would mean his service, as well as other service providers, could be taxed.

"Dry cleaners, hair dressers, nail salons, landscapers, gardeners, repair technicians, it's a long list," said Reddish.

Reddish says he's been hit hard as a small business owner lately.

"Increases in minimum wage, mandates sick leave, and now, we're facing taxation as well," said Reddish. "It's inevitable it increases our costs, which we have to pass on to the customer eventually."

Meanwhile, in an office across Phoenix, those on the opposite side of the issue are advocating for a "No" vote on 126. A phone bank has been set up by Americans for Prosperity, which is founded by the Koch Brothers. The coalition says Proposition 126 would make it difficult for tax reform down the road, and the way it is now is not fair to all businesses.

"65% of businesses in Arizona are service-based," said Andrew Clark. "So, if you're saying to 65%, 'hey, you'll never have to pay a dime in sales tax,' you're leaving the 35 percent to pick up the tab."

One thing both Reddish and Clarke agree on is that Proposition 126 is horribly written and confusing. A "Yes" vote means there would be a prohibition on a service tax, while a "No" vote means there would not be a prohibition on the tax. They urge voters to read it very carefully before voting.

Up Next:


  • Popular

  • Recent

Stories You May Be Interested In – includes Advertiser Stories