Three states in the US have opted to impose a sales tax on coin-operated self-service laundry machines. As a result, coin-operated laundry owners in these states have begun to lobby for the right for all laundromats to be tax-free. Across the remaining 47 states where there is no use tax imposed, owners are waiting to see what unfolds during this debate. Ready to buy new or used coin operated washers and dryers in Charleston, SC? If you want to save money, call T & L Laundry Equipment today!
There are three main reasons that coin-operated laundries are fighting to stay exempt from taxes on the use of their machines.
- Having clean laundry is a service to public health. A laundromat provides a basic public health service to the communities they serve. As a result, the use of a laundromat should not be considered a luxury service and should be tax exempt. The promotion of a healthier community and the basic need of people to have clean clothing is viewed by the vended laundry industry as a fundamental reason that the service shouldn't be taxed.
- Collecting the sales tax is nearly impossible. As new states debate whether or not to implement a laundry sales tax, laundromat owners face a huge problem with the collection of this tax since prices on coin machines are only able to be increased by multiples of 25 cents. Covering the proposed tax would require doubling prices to more than twice the amount of the sales tax. The increase in prices has the potential to drive away customers who rely on the laundromat for a budget friendly way to clean their clothing.
- The majority of laundromat customers would be adversely impacted by the increase in prices. The average household income for a laundromat customer is approximately $23,000 annually, and the Coin Laundry Association claims that the additional taxes on these customers would make utilizing the laundromat cost prohibitive.
As a laundromat owner, paying attention to the proposed sales tax regulations in your area can help protect your business and your customers' interests. If you're facing rising costs in your market like higher utility rates and employment costs, increasing the price per load will help defer the costs you face as an owner. See our previous post on what you shouldn't do to save money in your laundromat business.
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For more than 40 years T & L Laundry Equipment has kept up with the pulse of the commercial and vended laundry industries. Staying in touch with the latest issues, trends, and technologies helps us keep our owners ahead of the competition. Has your business slowed as a result of a recent price at the machine increase? Our staff can help you reinvigorate your business with a new cashless payment option in your laundromat or with tried and true methods that can bring your customers back.
Call or come by and see how T & L Laundry Equipment can help you grow your business in 2018 with affordable coin operated washers and dryers in Charleston, SC!
