Proposed state budget could tax haircuts, manicures, gym memberships

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By JOLEEN FERRIS

Story Created: Dec 17, 2008 at 1:20 PM EDT

Story Updated: Dec 17, 2008 at 6:22 PM EDT

(WKTV) - Every time you go to the salon for a trim, or go to the gym - New York State wants a cut. Governor Paterson's budget proposal includes 11 pages of new or enhanced taxes, fees and penalties.

Among them - proposed authorization for salons, barber shops, gyms and places that offer massages. Some fear it will make New York State - a place already perceived by many as tax-happy and not-so-business-friendly - even more unattractive to business.

"I've been in the business for 32 years, I've been cutting hair for 32 years I've had this salon for 14 years and I never thought I'd see a tax on haircuts," said Shelley DelMonte, of Clips -- a hair salon in south Utica. DelMonte's disbelief is coupled with frustration.

"It's going to create a lot of paperwork for us and the consumer's the one that has to pay for it. It just seems unfair."

Under the governor's proposal, local gyms and health clubs would have to charge clients a sales tax for their memberships. Massages - also taxable.

Right now, the personal service tax is only a proposal. The senate and assembly have to take a close look at the governor's budget and how it would affect the taxpayers they represent. They hope to pass a budget by March 1 - a month ahead of schedule.

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