As
your elected member of the California State Board of Equalization, I am
fighting to ensure your voice is heard in Sacramento. As always, I
welcome your ideas about how we can work together to solve the pressing
problems facing our state.
An Anti-Jobs Budget
As Governor Jerry Brown was forced to admit when he released his revised budget,
California's budget deficit has grown substantially since January--from
$9.2 billion to $15.7 billion. There are several reasons for this
larger deficit: (1) the Governor's prior budget projections have proven
overly optimistic, (2) spending has grown this year and (3) the
Governor's budget anticipates growing spending even more in the next
fiscal year.
Yes,
contrary to what you may have heard, state spending and revenues are
actually growing--and they're growing without tax increases.
According to California Budget Fact Check,
general fund revenues are expected to grow $4.9 billion in the fiscal
tax year without a tax increase. And total state spending, which
includes special funds and federal dollars, is higher than ever and will
near $225 billion by next year.
The
problem isn't that we don't have enough money. The problem is that is
that the Governor and others want to increase spending even faster than
the money is coming in.
What
the Governor and his friends don't seem to realize is that they would
have more than enough revenue to fund their programs if Californians had
jobs. Yet rather than fight for jobs, the Governor is pushing tax hikes
that will drive even more jobs and investment away from California.
Meanwhile
governors in other states--ones with far lower unemployment rates--are
continuing to recruit employers and jobs away from California. Each and
every time Governor Brown endorses a new tax increase or regulation, he
only aids their efforts.
The answer to California's budget problems has been and always will be jobs. When will our Governor realize this?
My "Blowback" to the LA Times
In
its April 23 editorial, "A college bargain for Californians," The Times
ponders what the state might do with "an extra billion dollars a year."
After considering various possibilities, the editorial acquiesces to a
proposal from Sacramento that even it admits is flawed.
But
before you spend this money, you have to collect it. To reap the extra
billion dollars, The Times believes it "makes sense" to ignore the will
of California voters and punish companies whose only apparent crime is
being headquartered outside California.
The
proposal, by Assembly Speaker John Perez (D-Los Angeles), is AB 1500,
which he calls the California Middle Class Scholarship Act. It would
impose a $1 billion tax hike on "out-of-state" businesses to provide
college financial aid for families earning between $80,000 and $150,000 a
year.
The
plan targets a 2009 tax formula change, which only became effective
last year -- after California voters rejected a November 2010 ballot
measure aimed at repealing it.
New Technology Could Help Fight Meth
Meth
is a big problem here in California, and we need to work together to
win the war on this deadly drug. Meth is a powerful drug. Perhaps no
illegal drug has had a more damaging impact on our state in recent years
than methamphetamine.It wreaks havoc on families, increases crime,
places our children in danger and destroys the health of citizens. This
is a relatively new battlefront in the war on drugs and winning this
fight should be a top priority for all Californians.
While
serving in the state Legislature I worked closely with law enforcement,
retailers and labor to enact laws that make it more difficult for
criminals to produce meth. We passed good laws that have made a
difference. I continue to support new ways we can eradicate meth from
our state.
Right
now, legislation is pending that would provide California law
enforcement with a proven new tool in the fight against meth. The
technology, called National Precursor Log Exchange (NPLEx), blocks
unlawful pseudoephedrine (PSE) purchases right at the sales counter and
allows police officers to monitor criminal activity in real time.
New Mobile App for Taxpayers
It’s no fun paying taxes, but it’s even worse when government doesn’t make it quick and easy. If
that's been your experience in the past, you'll be pleased to know that
the Board of Equalization is harnessing technology to make your life a
little easier.
A new free application, called BOE ePay, allows owners of most mobile devices to make payments to their BOE tax and fee accounts.
BOE
ePay enables taxpayers to use their credit card, checking or savings
account to make ePayments, view their ePayment history and register and
manage their accounts.
Another application allows taxpayers to find the sales tax rate of any jurisdiction or locate a district office.
To learn more, visit www.boe.ca.gov/mobile.
Use Tax Poll Results
The
Board of Equalization recently contracted with Harris Interactive to
complete a broad-based survey regarding California residents’ attitudes
and perceptions toward use tax. The survey was conducted in April 2012.
To read the results of the survey, click here.
Tax Tip of the Month
Q. When I pay use tax, do I get a credit for sales tax paid to other states?
A. Yes. You can receive a credit for sales or use tax paid to other states when the following conditions apply:
- You purchased property out of state and brought it into California for use, consumption, or storage in this state (not for resale in the regular course of business)
- You paid another state's sales or use tax on your purchase of the property
- You are not entitled to a tax refund from the other state
- Your liability for tax in the other state occurred prior to your use, storage, or consumption of the property in California
- You reported the purchase price
Note:
The amount of tax paid to other states claimed cannot exceed the total
of the applicable California state, county, local and district taxes in
effect at the time of the use.
For more information, visit www.boe.ca.gov/taxprograms/usetax.
Upcoming Events
On
June 5, my staff will be participating in a small business forum
designed specifically for agricultural organizations in the Central
Valley. Taxpayers are invited to attend this event to interact with
federal and state representatives regarding business growth, tax
resources and other information relating to the agricultural industry.
Tuesday, June 5, 2012
9:00 a.m. — 11:30 a.m.
US Small Business Administration Office
801 R Street, Suite 201
Fresno, California 93721
On
June 22, I am co-sponsoring a Small Business Tax Forum with BOE
Vice-Chair Michelle Steel and Senator Bob Dutton. This free seminar for
small business owners will include experts from the Board of
Equalization, Internal Revenue Service, Franchise Tax Board and
Employment Development Department.
Friday, June 22, 2012
12:00 p.m. — 3:30 p.m.
Goldy S. Lewis Community Center
Rancho Cucamonga Hall
11200 Base Line Road
Rancho Cucamonga, CA 91730
12:00 p.m. — 3:30 p.m.
Goldy S. Lewis Community Center
Rancho Cucamonga Hall
11200 Base Line Road
Rancho Cucamonga, CA 91730
For additional information about BOE outreach and events, visit www.boe.ca.gov/info/outreach_events.htm.