Don't Subject Legal Services to Utah Sales Tax

A proposed bill in Utah, House Bill 441, would "[impose] a state sales and use tax on amounts paid or charged for services," among many other things. In the bill's current form, this would include a tax on legal services. This is not good public policy.

My practice focus on estate planning. I try to ensure that my bill for an estate plan for someone with limited means is as low as possible. While my fees are not inexpensive, they are lower than what most estate planning attorneys in Utah charge, and I provide far greater value than a general practitioner without a focus on estate planning might charge.

Many individuals still try to save money through a "do it yourself" estate plan or by hiring someone who charges less but has limited estate planning experience. I have many clients involved in estate disputes that arise due to an ineffectual estate plan; these disputes cost thousands of dollars and often could have been avoided if a good estate plan had been implemented in the first place.

A sales tax on legal services would increase the cost of those services, thereby leading more individuals to look for cheaper and less effective options. This would result in more estate disputes that would require significantly more in legal fees to resolve (which dispute fees would be subject to sales tax). Of course, the problems described herein apply not just to estate planning services but other legal services sought by vulnerable individuals such as those dealing with divorce, domestic violence, debt collection, personal injury, criminal charges, landlord problems, and bankruptcy. Please tell your legislator that you oppose a state sales tax on amounts charged for legal services.

Posted in: Estate Planning