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The Tax Equalization and Reduction Act Major provisions from Representative Quinns proposal include that it: Broadens the state sales tax base to include all services except tuition, rent, and most medical services Repeals certain sales tax exemptions Imposes a 1% tax on medical insurance premiums written in the state Creates a real-estate transfer tax Reduces the states sales tax rate from 4.7% to 3.1% Reduces local options sales tax rates Reduces the states income tax rate from 4.95% to 4.75% Creates a refundable earned-income tax credit Its important to note that the sales tax would be levied on the services of a wide number of industries for which a significant portion of their sales are business-to-business transactions