California Governor Proposes Taxing Veterinary Services

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California Governor Proposes Taxing Veterinary Services

Posted: November 7, 2008, 12:37 p.m., EST

 

California Gov. Arnold Schwarzenegger announced a plan Thursday that would

raise the state's sales tax rate and apply it to veterinary services, among

other services, to help fix the state’s $11.2 billion budget shortfall.

 

“We have drastic problems that require drastic and immediate action—we must

stop the bleeding right now,†Schwarzenegger said in a statement.

 

The state's sales tax rate is 7.25 percent. Many counties add to that basic

rate. Under the proposal, Los Angeles County's sales tax rate would be 10.25

percent.

 

Hawaii, New Mexico and South Dakota are the only states that currently tax

veterinary medical services, including routine exams and vaccinations, according

to the American Veterinary Medical Assn.’s state tax summary report.

 

While California does not tax ancillary veterinary services, such as grooming

and boarding, or prescription medications, it does tax non-prescription

products, as do 33 other states.

 

Only eight states charge no taxes of any kind on animal products or services.

 

“The regulations and exemptions on sales tax vary greatly from state to

state,†said David Kirkpatrick, AVMA media relations manager.

 

Members at the California Veterinary Medical Assn. are not thrilled with

Schwarzenegger’s plan.

 

“We strongly believe that pets are members of the family,†said Valerie

Fenstermaker, CVMA executive director. “Any tax on veterinary services may

prevent people getting good medical care for their pets. We believe that

veterinary care, along with human care, should not be taxed.â€

 

Fenstermaker said CVMA is exploring its options to see what it could do to

prevent this from happening.

 

In addition to the tax increases, Schwarzenegger proposed spending cuts in

education, health care and welfare payments.

 

The plan will now be negotiated among leaders of the state Legislature. <HOME>

 

 

 

 

For in a Republic, who is “the country� Is it the Government which is for

the moment in the saddle? Why, the Government is merely a servant—merely a

temporary servant; it cannot be its prerogative to determine what is right and

what is wrong, and decide who is a patriot and who isn’t. Its function is to

obey orders, not originate them.

Mark Twain