California Debates Taxing Veterinary Services

Although unaware to many pet owners, California currently exempts veterinary services from sales tax. So that if your pet receives veterinary care that costs $100.00, there is no tax added to that fee. (Veterinary products such as Advantage, pet food, and shampoos, have always been taxed.) Facing a budget shortfall, Governor Schwarzenegger has planned on taxing veterinary services. In effect, this would amount to an automatic 8-10% increase for all veterinary fees - a fee that will be collected by veterinary facilities and paid to the state.

These new sales taxes are not "set in stone," however. According to the California Veterinary Medical Associtation (CVMA), "A special session of the Legislature must be convened to approve the Governor's plan. The proposal would need to be approved by the Legislature with a two-thirds majority of both the Assembly and the Senate." The CVMA website has more information regarding the measure.

We will keep you posted as updates are available.

Update: 01/22/09 Take Action. Follow this link to learn the different ways you can voice your opinion. The hotline voting is the easiest but the numerous times I've tried, it's been busy. I heard from others who managed to get through so let's keep trying.

Update: 02/11/09 State's Legislative Analyst's Office advises against the proposed sales tax on veterinary services. Instead, the LAO suggests repealing 2 existing sales tax exemptions which will affect cost of veterinary care. A synopsis can be found at the CVMA site.