Tax agency gets special treatment

Tax agency gets special treatment

Nov. 1, 2012

Katy Grimes: Californians already know that the thousands of laws and regulations passed every year by the Legislature rarely apply to government.

Now we have more evidence of this.

The Board of Equalization, the huge state agency charged with tax collection and administration, wants full reimbursement for the cost of implementing the new Lumber Tax, which goes into effect Jan. 1, 2013. But California’s retailers and businesses will only get a flat $250 from the state for their setup costs to add the new tax to retail computer systems.

Many retailers estimate thousands of dollars in extra costs for the initial setup.

Yet according to bill analysis, the new law said that retailers were entitled to reimbursement for the cost to update computer systems adding in the new tax. At a recent BOE board meeting, the agency decided against total reimbursement for retailers, but voted instead to give itself full reimbursement.

The BOE will probably hire new employees to write and implement the tax changes into their computer system, but retailers will have to make due with existing employees and budgets, or contract out for this, at their own expense.

Here’s what BOE board member George Runner had to say about the agency making sure that they received state reimbursement of all of their setup expenses, while showing little or no concern to businesses:



Lumber Tax

The legislation, which created the lumber tax on consumers, mandates a new state tax of 1 percent on all lumber sales in California, ostensibly to pay for “oversight of the timber industry.”

Agriculture and the construction industry will be especially hard hit by the tax, as will consumers looking to remodel, make repairs or home improvements.

But Gov. Jerry Brown, who pushed the Legislature to pass AB 1492, insisted that the new tax “evens the playing field to protect California’s timber industry jobs.”



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  1. Hondo
    Hondo 1 November, 2012, 18:23

    There are a thousand little things like this lumber tax that has kept the unemployment rate above 10% in Kalifornia for years. This is while the rest of the country is coming out of the downturn in the economy.
    Kalifornia has more ways to make economic growth and jobs than any place on earth. It was called the golden state for good reason. It was. And the Kali demoncrats can’t figure out how the rest of the country is getting better and they ain’t.
    They never will. And there doesn’t seem to be any way of getting them out. So, many Kalifornians are getting out of the state.
    Uhaul really out to get into the moving business. It’s the only business that seems to be doing well in Kalifornia.

    Reply this comment
  2. Forest grump
    Forest grump 1 November, 2012, 21:51

    More government bureaucrats to drive around new ford 4×4’s looking for bark beetles and having lunch on the clock with their BLM and NFS buddies. Just what we need, more tree police???

    Reply this comment
  3. Queeg
    Queeg 2 November, 2012, 10:31

    Ulysses is in Texas at a auction…they have a glut of trailers, Pods and boxes. For some reason!

    Watchin the office today…if ya call in….we may get ya in about Nov. 27th.


    Reply this comment
  4. jimmydeeoc
    jimmydeeoc 2 November, 2012, 13:41

    speaking of nickel and diming..and sweating the small stuff while ignoring those 800 pound elephants

    From Walter Russell Mead’s blog (Via Meadia…….well-written observations for those moments you are away from CWD.)
    Hurricane Sandy and the Perils of Nanny State Governance

    ……Here in New York we have a very busy government. It’s worried about the kinds of fats we eat and the size of the soft drinks we buy, and there is no shortage of regulations affecting businesses, street vendors, and individuals. But in all this exciting fine tuning, nobody seems to have bothered to think about the much greater task of keeping floodwaters out of the subway system. Admittedly, getting public support and finding the money for flood protection would be hard, but it is exactly that kind of hard job that governments are supposed to do. Leadership is getting the important things done, not looking busy on secondary tasks while the real needs of the city go quietly unmet.

    The problem with nanny state governance isn’t just that it’s intrusive. It isn’t just that it stifles business with over-regulation, and it isn’t just that it empowers busybodies and costs money. It’s that it distracts government from the really big jobs that it ought to be doing.

    Mayor Bloomberg has done an admirable job under great pressure as the city reels from Sandy’s attack. But an ounce of prevention beats a pound of cure. The city needed flood protection for its subways and electricity grid—and it didn’t get it. If the Mayor had spent less time and less of his political capital focusing on minutiae, this storm could have played out very differently.

    Sound familiar?

    Reply this comment

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