A Second State Could Ban Service Taxes

Governing: More governments are looking to expand their sales tax to services like Netflix and yoga. Already, half of states tax fitness studio classes or memberships, while places like Chicago, Florida and Pennsylvania have all started taxing online streaming services in recent years.

But there's a growing movement in conservative states to stop that trend.

Next month, voters in Arizona will consider whether to make their state the second to ban any expansion of the state’s already limited tax on services. Currently, the state only taxes certain types of software services and some transportation services.

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