SALES TAX SMACKDOWN: Association Gets Out Front

Posted on February 17, 2010 by LCT Staff - Also by this author - About the author

LOUISVILLE, Kentucky — For the third year in a row, the members of the Kentucky Limousine Association are hearing a familiar “ca-ching” among state legislators as they murmur about levying a sales tax on the “rich folks.”

A $1 billion hole in this year’s state budget has spurred rumblings among legislators of levying a 6% sales tax on luxury items and services, such as country clubs, green fees, and limousines. The state now does not levy a sales tax on chauffeured transportation services.

No formal bill has been proposed, but there are discussions at the committee level in the legislature, said Carey Fieldhouse, the president of the Kentucky Limousine Limousine Association and owner of R&R Limousines in Louisville.

To ward off a possible sales tax bill until the legislature finishes its business in March, Fieldhouse sent an e-blast to members that asks each recipient to click a link, enter a zip code that automatically brings up the names and e-mails of the state senator and representative for that zip code, and then send a message to the legislators.

“One of our [reasons] for protest is if you open up the Yellow Pages for Louisville, there are 50 limo companies, yet only about 10 that are legally authorized companies,” Fieldhouse said. “You’ll have illegal companies collecting taxes that they won’t remit.”

Fieldhouse also underscored the fact that for most operators, only a small fraction of clients are actually considered wealthy. “The majority are not. They are prom students and couples having a wedding who have saved every penny to get a limousine,” she said.

In an e-mail to the KLA, Fieldhouse further stated: “Small business understands that times are hard and money is tight, but repealing the sales tax exemption on services would make things worse, not better. We have to remind House and Senate members today that small business is the lifeblood of Kentucky's economy. We can't afford a sales tax on services. And in this election year, neither can anyone who hopes to get re-elected.”

As part of a form letter to e-mail representatives, Fieldhouse highlighted the five following points on why limousine companies are good community stewards:

1) Provide drug-free, safe, and reliable transportation during proms and graduations.

2) Provide hundreds of donated trips to area charities, helping to raise hundreds of thousands of dollars in Kentucky communities.

3) Encourage academic excellence through participation in student reward programs.

4) Provide women traveling with children with pre-arranged chauffeured transportation rather than taxi transportation.

5) Encourage designated driver program — encourages groups of people to carpool during a night out — keeping potentially drunk drivers off of our roads.

— Martin Romjue, LCT Magazine

View comments or post a comment on this story. (0 Comments)

More News

Uber Appears To Be Losing A Big Case In Europe

Should the TNC be treated as a taxi service subject to the same safety and employment rules?

Drivers File Preemptive Labor Suit Against Uber Chiefs

The suit alleges disgraced ex-CEO Travis Kalanick and co-founder Garrett Camp advised the company to misclassify drivers.

Virginia Operators Fight TNC Bill And Unfair Tax

The Virginia Limousine Association gears up to repeal TNC registration relief and unfair vehicle tax advantage.

Inside Travis Kalanick’s Resignation As Uber’s CEO

At a Chicago hotel, two venture capitalists presented him with a list of demands, including his departure by the end of the day.

Push To Close Long Island TNC Sex Offender Loophole Begins

Uber and Lyft can start operating in Suffolk County on June 29th.

See More News

Facebook Comments ()

Comments (0)

Post a Comment



See More

LCT Store

LCT Magazine - July 2017 $12.95 COVER STORY: * Why These Titans Work So Hard to Give it Away * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment


Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close