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Don't Let them Increase your labor rates on repairs. PLEASE READ!.

AAA Urgent Action

To: Maryland AAA Members
Re: Sales Tax Increases

The Maryland General Assembly is in special session right now to address state budget issues. Among the proposals is to expand the sales tax to impose a sales tax on various services - specifically motor vehicle maintenance repairs, services, and service or extended warranty contracts. (Additionally, HB2/SB2 will also increase the current 5% sales tax to 6%.)

This proposal to expand the sales tax significantly to now include the labor on all auto repairs will be costly for every Maryland car owner -- its estimated to add at least another $80 million dollars in annual costs to Maryland 's already over-taxed car owners.

This issue is before the House Ways and Means committee right now. We need your help to ACT NOW to persuade the committee members to remove this proposal from the sales tax bill.

Time is of the essence. We ask that you, your friends and family members PLEASE CALL your personal General Assembly representatives (House and Senate) as well as many members of the WAYS & MEANS COMMITTEE NOW and voice your strong opposition to taxing auto repair labor costs and motor vehicle services.

Calls should also be especially made to:
Committee Chair Sheila Hixon (301/858-3469)
Vice Chair Ann Marie Doory (410/841-3476)
Majority Leader Kumar Barve (301/858-3464).

Please, in addition to your call, also visit our Legislative Action Center to send an automated email to your personal representatives.

Thank you for your assistance.

Ronald W. Kosh
Vice President, Public & Government Affairs
AAA Mid-Atlantic, Inc.

MOTORIST/CONSUMER ISSUES:
Motorists’ fuel costs are already skyrocketing. We are heading into record high gas prices that will hit motorists very hard going into this holiday season. Gas prices today are already 35% higher than the same time last year, now Maryland’s motorists may also face;

– INCREASED COST OF AUTO REPAIRS
Expanding the sales tax to include labor on motor vehicle repairs (it already applies to parts) will further and significantly increase the cost of auto repairs. Labor is already, by far, the largest component of most repair bills.

– UNSAFE VEHICLES ON THE ROAD
The tax could increase the number of unsafe vehicles on Maryland’s roadways. Increased costs of road services and towing that will result from the expansion of the tax will also increase the use of unsafe means to remove disabled vehicles from Maryland’s roadways.

– HIGHER INSURANCE RATES
A tax on car repairs and services is regressive. If the tax is passed on to the consumer it would particularly hurt low-income motorists for whom it is already difficult to come up with the money to repair and maintain their vehicles; Adding this tax would further increase auto insurance claim costs and ultimately Maryland’s already high auto insurance rates because auto body and repair services are the significant components of the cost of auto insurance claims.
AAA. Use it for all it's worth.(r)

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