2015 Spring Legislative Update
Legislative Action
The political process can be discouraging, to say the least, but it’s the process we have. There are a million groups bending the ears of policy makers with issues they are just as passionate about, and when we look at that as the big picture we can see how legislative priorities quickly shift. This is why grass-roots efforts are much more effective than clever, streamlined, strategies that narrowly focus on a select and limited group of policy makers. While leadership support is important, and can’t be ignored, what happens when those legislators lose interest or if we can’t get their attention in the first place? We need a broad scope of policy makers in our corner to be truly effective. CAP has members all over the state and those members should bring with them a legislative relationship that, when place collectively together, serves as an invaluable assets for the industry. Such a network would provide a solid foundation and require nominal efforts from a government/legislative consultant. So, in 2015 would you make a vow to reach out to your state representative and state senator to discuss the role small business plays in that legislative district? Specifically, discuss the challenges established by state government who creates unfair advantages for one type of business over another – even when they are similar – like Car Washes and Laundromats. Make sure you continue that dialogue beyond that introductory meeting and then communicate your activity with the CAP office. And if you already have a legislative relationship established – have you discussed the tax exemption issue with your legislators? Have you shared that information with the CAP office? This is all important if we are to create an effective grass-roots effort within the industry – one we can call upon when needed. We need every operator and industry vendor involved if we are to make an impact. Further, past legislative efforts took a financial toll on CAP’s budget and we need everyone in the Carwash Industry in Pennsylvania to step up, financially, to aid the Association in their quest for financial justice. We established a variety of membership levels to provide members with options in their financial support of CAP efforts.
2015 Memberships Available:
2015 Benefactor: $10,000 2015 Platinum Member: $5,000
2015 Gold Member: $2500 2015 Silver Member: $1,000
2015 Operator Membership Upgrade: $300
Regular Memberships remain at $395/Vendors and $195/Operators.
Sales Tax Exemption Legislation
The Carwash Association of Pennsylvania continues to monitor and consider options as it pertains to sales tax laws applicable to carwash businesses in the Commonwealth. We encourage members to pursue a dialogue with their state representatives and senators so that we may call upon them should the opportunity arise for tax code revisions. The CAP office has a wealth of information and resources to guide you in this activity; please contact us. It is our collective efforts that will make the difference in this area.
Sales Tax Exemption History
The Carwash Association of Pennsylvania worked tirelessly in 2003 to get tax exemption legislation signed into law. Industry leaders made great strides and came so close to the passage of legislation, but, last minute deals and changes in leadership pulled the rug out from under us.
CAP tackled tax code revisions again in 2013 under the guidance of Long & Nyquist Associates, a Harrisburg lobbying firm. The firm explained that the Governor’s proposed increase in the 2014 state budget bill presented a worthy window of opportunity for CAP. Additionally a tax code bill was being drafted to run in conjunction with the general state budget and offered the perfect vehicle for CAP legislation, (amending an existing bill is much easier than the traditional approach of offering a stand-alone piece of legislation.) Another advantage this approach offered was that only Senate and House leaders and the chairs of both chambers’ Appropriations and Finance Committees would be involved with the tax code bill; narrowing our efforts to approximately 20 policy makers. The board was convinced to take action and adopt the proposed strategy given the limited amount of time and resources and the logistical advantages working in CAP’s favor.
CAP advocated for the exemption of all PA carwashes of gross receipts tax on all carwash service sales and the exemption of sales and use tax on products, including water and electricity, required to provide the services of a vehicle wash, wax or detailing. CAP understood that the industry may have to compromise in order to make any notable gains. After many meetings and heated discussions CAP agreed to compromised tax exemption language that would have exempted the services of self-serve carwashes from the PA gross receipts tax. While board members worked hard for more expansive and inclusive tax code revisions they agreed to the compromised language in an effort to make a positive gain for the industry in the Commonwealth – the objective was to “move the ball forward.” Unfortunately, as last minute budget talks pursued, CAP’s amendment was excluded from the final tax code bill, as we simply didn’t have the advocates needed within the House Leadership to champion the amendment.