Not My Netflix or Yoga: Voters Make Arizona the Second State to Ban Service Taxes

As service taxes gain favor as a way to raise revenue, there's a growing movement to stop them. Voters in Arizona joined it on Tuesday.

It’s already rather difficult to pass a tax hike in Arizona. Now voters have completely eliminated one option for lawmakers by approving an outright ban on taxing services.

By a margin of two to one, voters opted to make Arizona the second state in the country to pass such a ban. Missouri passed a similar ban two years ago. Both initiatives wereheavily funded by real estate associations in each state.

Arizona’s ban comes as more governments are looking to expand their sales tax base to include services such as Netflix and yoga classes. Already, half of the states tax gym classes or memberships, while places like Chicago, Florida and Pennsylvania have all started taxing online streaming services in recent years.

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