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Proposed Tax Changes Could Pinch Small Businesses Save Email Print
Meridian, Miss.
Posted: 6:25 PM Aug 20, 2008
Last Updated: 7:19 PM Aug 20, 2008
Reporter: Tametria Conner
Email Address: tametria.conner@wtok.com

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The Mississippi Tax Study Commission is expected to release a final report on ways it thinks the state should alter its tax structure.

Some preliminary recommendations have already been made, and they have some people a little bit nervous.

If recommendations made public last week from the state's Tax Study Commission are approved, in addition to cigarettes, many other services may be taxed.

The 39-page report suggests an additional tax to janitorial services, photo services, rental and towing services, and even Girl Scout cookies. Currently, they are exempt.

And even though these are only recommendations, just the thought of more taxes being added has some business owners, like ServiceMaster of Meridian, on edge.

"It would just be an increased burden on my customers, and we would have to pass that on to the customers," said Jim Cawson. "The bad part about it is, we may end up losing some of those customers. They may just decide that, they're going to clean their own buildings. And that would result in some lost jobs for this area."

Gov. Haley Barbour appointed the committee of thirty-eight, including Lauderdale County supervisor Craig Hitt, to examine the state's current tax code.

The commission was to propose reforms that would ensure revenue stability for state government and encourage job growth.

Hitt said there may even be an additional special city and county sales tax. But Hitt, being a business owner and possibly having his services taxed as well, is concerned.

"My biggest question is, why were these not taxed originally?" asked Hitt. "Why they did they get exceptions before when all the other services are being taxed?"

Even getting pampered at the spa and beauty and nail salons may cost an extra tax as well.

Exquisite Hair Trendz owner, Eloise McWilliams, says with people pinching their pennies she's hoping the legislature won't approve these recommendations, so she won't have to raise her prices.

"With all that in mind, sometimes you will have to add on, not wanting to, but we all will adjust," said McWilliams.

"I'm not sure how much of this will make it in the final report, and certainly, how much will get through the legislature when that time comes," Hitt said.

Hitt said recommendations will be submitted to the governor at the end of August. But whatever they are, Mississippi lawmakers will have the final say.

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