News
Veterinary Tax Would Treat Pets Like Products
November 22, 2008, 8:19PM MT
By Sandi Cain
9% sales tax on pet care still under consideration
9% sales tax on pet care still under consideration
By Sandi Cain, Best Friends Network Volunteer
Update Feb. 4, 2009: The proposal to tax animal healthcare is still on the budget table in California and could be enacted at any time. There is an easy way to register your opinion: call (916) 445-2841; then follow these prompts: 1 (for English); 5 for veterinary tax; 1 for vet tax proposal; 2 to oppose the tax.
Just days after California was lauded for its efforts in passing Proposition 2 that provides for more humane treatment of farm animals, California Governor Arnold Schwarzenegger proposed an increase in sales taxes to help balance the state budget that would apply sales tax to veterinary services, thereby treating pets like products in the eyes of the state.
Under the new proposal, veterinary services were rolled in with appliance and furniture repair, vehicle repair, golf and amusement park tickets as new categories that would be subject to sales tax. All other medical services were excluded from the proposal, according to the California Veterinary Medical Association (CVMA).
The proposal comes at a time when shelters and rescue groups are overflowing with homeless and abandoned animals who are victims of the current economic slowdown. Taxing veterinary services likely will lead to more pets going without medical care or being euthanized when families cannot afford the care that would save their lives.
A 9% tax on a $25 shot may not seem like much. But consider the extra cost for those who have older pets with manageable ailments that require regular visits; care for an animal hit by a car or bitten by a snake or 9% on top of the hundreds of dollars it might cost to save a pet that has accidentally been poisoned.
Some possible consequences of this action are:
• Fewer veterinary visits, imperiling the health of pets.
• Decreased business for veterinary professionals, who typically are small business owners and may need to eliminate jobs if business declines.
• More people choosing to euthanize pets with serious but treatable conditions because of the increased costs.
• More people abandoning their pets or adding to overcrowded shelters, thus costing Californians more to operate the shelters.
• Higher food prices for things like milk, eggs, cheese or meat to cover the increased cost of veterinary care for food production animals.
• Adding sales tax to human healthcare to address future budgetary needs.
• Adding sales tax to other professionals who provide services, such as accountants, consultants or public relations professionals. (This has already been suggested by the Legislative Analyst's office, though it is not part of the current proposal.)
California pets—who cannot protest on their own behalf—should not suffer because the state can’t balance its budget. Adding a sales tax to any medical care is the first step down the road to taxing all medical care.
This proposal will be considered in a special session of the Legislature to consider the Governor’s Budget that may be convened this coming week. It would need to pass with a two-thirds majority in both the Assembly and the Senate. The Assembly is next scheduled to meet on November 25.
What You Can Do
If you agree that this proposal is inadvisable, please send respectful letters, emails or faxes of opposition to the Governor and/or your Assembly representative and state Senator, urging them to remove veterinary care from the proposed sales tax increase. Direct these representatives to California Veterinary Medical Association for more information.
Contact information for Governor Schwarzenegger is:
• email
• Fax: (916) 558-3160
Find your State Assembly Representative here
Find your State Senator here
Other top legislative officials:
The Honorable Karen Bass, Speaker of the Assembly
Fax (916) 319-2147
The Honorable Don Perate, Senate President Pro Tempore
Fax (916) 327-1997
The Honorable Darrell Steinberg, Senate President Pro Tempore
Fax (916) 323-2263
Best Friends Animal Society has not taken a position of support or opposition to this piece of legislation. For more information on how animal legislation is reported on the Best Friends Network, click here
Image courtesy of Veterinary Cancer Group in Tustin
Veterinary healthcare professionals at facilities like this one in Tustin would be required to charge sales tax on services rendered under a plan pending before the California Legislature.