One quick scenario. Imagine the sign installer charging sales tax, the photographer charging sales tax, the printer charging it, the staging company charging it, and on and on. Then, all those costs get passed to the real estate broker, who tacks on his required sales tax and tells Mr. and Mrs. Home Seller they'll also be required to pay a "small" transfer tax at closing. All these costs get passed to the seller when they want to sell... and ultimately to the buyer as a higher price. Buying a house is now more expensive, so savvy landlords know they can also now charge higher rents. Can you see how this could become an expensive and never-ending chainof taxes?
I'm definitely not a tax expert or an economist, but I feel I have a fairly reasonable grasp on reality and cause/effect. And, in my non-economist opinion, I believe we all narrowly missed a taxing bullet with House Bill 441 being killed this legislative session. If you're not familiar, HB 441 proposed a sales tax on pretty much all services plus a very small real estate transfer tax, which would no doubt grow over time... all while we supposedly have a tax surplus in Utah. Personally, I don't like the thought of making piano teachers and dog walkers collect and pay sales tax. What do you think?