MARGINS TAX
Editor:
We are a “mom and pop” RV trailer sales in business for 33 years. We will have to close our doors if the Margins Tax goes through.
Backers of this tax are people who have always worked for someone else and have no idea what goes into keeping a business going. Every time money is needed, their first thought is “let’s get it from the businesses.” They think when we gross a million dollars, that amount goes straight into our pocket. They don’t realize (or care) that it’s possible to gross a million and end up with little or no profit.
Trailers are going up every year in price, so it takes fewer sales to gross $1 million. We are also competing with the big corporation dealers who can afford to buy and stock more units than we do; therefore, they get a bigger discount on these same units, and we have to cut our profits in order to compete.
If we make 10 percent profit, which is very hard to do, that would be $100,000. Out of that $100,000 comes flooring (the cost of the trailer), flooring interset, property insurance, liability insurance, rent, utilities, property taxes and more. So let’s say we net $50,000, which would be normal for us in a good year. By the time we pay income tax on our profit and $20,000 margins tax, we are out of business.
The state and county lose $76,000 in sales tax revenue along with business license fees and personal property tax taxes, and we have no income to go down the street to buy from other “mom & pop” businesses .. that is if they are still open after also being taxed to death.
Rob Biggs
Fallon