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Hot Chocolate Saga Typifies California's Rediculous Tax Code
CA State Board of Equalization ^ | February 8, 2008 | Anita Grandrath Gore

Posted on 05/12/2008 12:21:04 PM PDT by GodGunsGuts

STATE BOARD OF EQUALIZATION 450 N STREET, SACRAMENTO, CALIFORNIA PO BOX 942879, SACRAMENTO, CALIFORNIA 94279-0086 916-327-8988 • FAX 916-324-2586 www.boe.ca.gov

Mr. William H. Weissman Littler Mendelson, PC 650 California Street 20th Floor San Francisco, CA 94108

Dear Mr. Weissman:

Your December 3, 2007 article “Why Is Buying Hot Chocolate So Confusing?” was referred to me for response since the Board of Equalization (Board) administers the Sales and Use Tax Law. In your article, you expressed concern regarding the proper application of the sales tax by various retailers with respect to sales of hot chocolate.

According to your article, you purchased a hot chocolate from a Starbucks located inside a Target Store in your hometown of Walnut Creek and were charged sales tax on the purchase price. However, you are not charged sales tax when you purchase a hot chocolate at a Starbucks located within a Safeway in Walnut Creek nor the Starbucks in the lobby of the Bank of America building in downtown San Francisco. You expressed concern that the application of sales tax is unexplainably inconsistent...

(Click link for their insanely convoluted response...no wonder so many people and businesses are fleeing the state!--GGG)

(Excerpt) Read more at test.boe.ca.gov ...


TOPICS: Constitution/Conservatism; Extended News; News/Current Events; US: California
KEYWORDS:

1 posted on 05/12/2008 12:21:04 PM PDT by GodGunsGuts
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To: GodGunsGuts

If people are going to start taxing hot chocolate into oblivion, there’s going to be some problems.


2 posted on 05/12/2008 12:27:11 PM PDT by wastedyears (The US Military is what goes Bump in the night.)
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To: GodGunsGuts

It’s spelled “ridiculous”.


3 posted on 05/12/2008 12:28:58 PM PDT by khnyny (Hillary is the national equivalent of Tracy Flick)
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To: GodGunsGuts

Unfortunately, they very people who elected the liberals who are making California unlivable are now moving out of state electing liberals who want to do the same thing to other states.


4 posted on 05/12/2008 12:28:58 PM PDT by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
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To: GodGunsGuts

Somebody PLEASE tell me this is satire.


5 posted on 05/12/2008 12:29:50 PM PDT by GovernmentShrinker
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To: GodGunsGuts

Reading that reply (and I tried so hard to understand what I was reading, and failed) has left me with a headache of vast proportion.


6 posted on 05/12/2008 12:31:37 PM PDT by theDentist (Qwerty ergo typo : I type, therefore I misspelll.)
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To: GodGunsGuts

My head hurts.


7 posted on 05/12/2008 12:33:27 PM PDT by antiRepublicrat
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To: khnyny

Eye new their wuz sumtheeing augh in my tidal :o)


8 posted on 05/12/2008 12:34:40 PM PDT by GodGunsGuts
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To: theDentist

I have a word for this, “govtarded”.


9 posted on 05/12/2008 12:35:21 PM PDT by Principled (Vaporize the "Divide and Conquer" taxes - Have everyone pay the same marginal rate!. NRST!)
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To: GodGunsGuts
That response was so freaking insane that I got Instant Eye Glazeover.

Do you realize that about 100 years ago, people were migrating to California to flee the onerous bureauocracy of the East?

Wow.

10 posted on 05/12/2008 12:35:24 PM PDT by Lazamataz (Secondhand Aztlan Smoke causes drug addiction obesity in global warming cancer immigrant terrorists.)
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To: GodGunsGuts

Obviously this issue isn't as easy as just black & white.....

11 posted on 05/12/2008 12:36:43 PM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: GodGunsGuts

Another nut named Gore.


12 posted on 05/12/2008 12:38:08 PM PDT by NTHockey (Rules of engagement #1 - Take no prisoners))
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To: khnyny; GodGunsGuts

RED-iculous sums it up quite nicely.......


13 posted on 05/12/2008 12:38:31 PM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: GodGunsGuts

California is trying to be like the planet Algon, fifth world in the system of Aldebaran, the Red Giant in the constellation of Sagittarius, where an ordinary cup of drinking chocolate costs four million pounds.


14 posted on 05/12/2008 12:40:04 PM PDT by dfwgator (Go Stars!)
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To: GodGunsGuts

You can thank Migden for this fiasco.....she was in charge for the CA State Board of Equilization.....and by all accounts her tax auditors made the gestapo look like girl scouts.


15 posted on 05/12/2008 12:40:54 PM PDT by spokeshave (Hey GOP...NO money till border closed and criminal illegals deported)
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To: GodGunsGuts

Ironic that the letter was written by a Gore. Any relation, I wonder?

OBTW, though convuluted, the explanation made perfect sense to me.

Perhaps I’ve been dealing with taxing authorities a little too much for my own good...


16 posted on 05/12/2008 12:40:56 PM PDT by HiJinx (~ Support our Troops ~ www.americasupportsyou.mil ~)
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To: Red Badger; GodGunsGuts
RED-iculous sums it up quite nicely.......

LOL. True.
17 posted on 05/12/2008 12:42:46 PM PDT by khnyny (Hillary is the national equivalent of Tracy Flick)
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To: theDentist
I tried so hard to understand what I was reading, and failed

My guess: Target's sales are less than 80% food so tax must be charged. Starbucks stores and stands in the bank building sell more than 80% to food end use. No tax.

18 posted on 05/12/2008 12:43:38 PM PDT by llevrok (I don't think outside the box. There is no box in my world.)
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To: GodGunsGuts

As I read through the explanation, I instantly thought of the Red Bull ad with the professor. The last line of the letter should have been, “Simple little man, Red Bull gives you wings.”

http://www.youtube.com/watch?v=rSaaV5LeQEY


19 posted on 05/12/2008 12:45:57 PM PDT by OA5599
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To: llevrok

That would have been a much shorter letter, though.


20 posted on 05/12/2008 12:48:08 PM PDT by ltc8k6
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To: llevrok

How can ‘ignorance of the law’ NOT be an excuse anymore?

I submit that it can be easily demonstrated that is is virtually impossible to know all the laws that actually apply to you and/or your business.


21 posted on 05/12/2008 12:50:08 PM PDT by Mr. K (Some days even my lucky rocketship underpants don't help)
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To: Blood of Tyrants

Sad but true.


22 posted on 05/12/2008 12:54:43 PM PDT by GodGunsGuts
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To: GovernmentShrinker

This is satire.

Not!


23 posted on 05/12/2008 12:55:11 PM PDT by GodGunsGuts
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To: theDentist

I bet the Board of Equalization could make a mint if they sold advertising space to such companies as Tylenol, Excedrin, Advil, etc.


24 posted on 05/12/2008 12:57:18 PM PDT by GodGunsGuts
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To: GodGunsGuts

Does one have to be insane to work for the State Board of Equalization or does working for the State Board of Equalization cause insanity?


25 posted on 05/12/2008 12:57:48 PM PDT by Madame Dufarge
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To: Lazamataz
It would appear that the pendulum is about to swing in the other direction. I feel sorry for the people in the Midwest.
26 posted on 05/12/2008 12:58:42 PM PDT by GodGunsGuts
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To: Red Badger

Yeah, that’s what I meant...good save :o)


27 posted on 05/12/2008 12:59:23 PM PDT by GodGunsGuts
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To: llevrok
My guess: Target's sales are less than 80% food so tax must be charged. Starbucks stores and stands in the bank building sell more than 80% to food end use. No tax.

While it took you one sentence, the bureaucrat used five pages -- and never quite explained why the different taxes applied.

28 posted on 05/12/2008 1:11:36 PM PDT by okie01 (THE MAINSTREAM MEDIA: Ignorance on Parade)
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To: GodGunsGuts
Did you see how many people were copied on this letter? Even better, how many were blind copied!
29 posted on 05/12/2008 1:17:40 PM PDT by erk
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To: ltc8k6
That would have been a much shorter letter, though.

I am in the paper industry. It's always a pleasure to see a long letter!

30 posted on 05/12/2008 1:23:38 PM PDT by llevrok (I don't think outside the box. There is no box in my world.)
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To: Blood of Tyrants
"Unfortunately, they very people who elected the liberals who are making California unlivable are now moving out of state electing liberals who want to do the same thing to other states."

Yeah, and if any are thinking of moving to Texas, tell them that it is extremely hot here, people are like insane cowboys constantly shooting each other. There are rattlesnakes every two feet, and five or six scorpions in your bed/night, if you are lucky.

Here in Texas bullets fly as often as rain in Seattle. In fact, Seattle is a wonderful place I have been told.

31 posted on 05/12/2008 1:27:20 PM PDT by lormand (Let's all be mavericks now)
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To: Red Badger

Is that a marshmallow second from left?


32 posted on 05/12/2008 1:29:02 PM PDT by reagan_fanatic (Average White Conservative)
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To: reagan_fanatic

Yeah, they got a couple of marshmallows......

33 posted on 05/12/2008 1:31:02 PM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: GodGunsGuts

I read most of the pdf. Now my head hurts. Wait ‘til the state of Kaleeforneea decides to apply the use tax to veggies grown in the garden out in the far corner of your back yard.

I doubt there will be a return to sanity short of a total world-wide collapse worse than the depression of the thirties.


34 posted on 05/12/2008 1:39:04 PM PDT by RobinOfKingston (Man, that's stupid ... even by congressional standards.)
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To: khnyny

“Rediculous” is the Internet spelling of the word.


35 posted on 05/12/2008 1:40:45 PM PDT by AppyPappy (If you aren't part of the solution, there is good money to be made prolonging the problem.)
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To: Lazamataz
"Do you realize that about 100 years ago, people were migrating to California to flee the onerous bureauocracy of the East?"

Some of them went there for the gold rush. One of my all time favorite Texans was John C. Hays, who eventually became Oakland's first mayor and was one of the founders of Oakland. His private land eventually became UC-Berkely.

"Jack" Hays is kind of like "Charles the hammer Martel" of France who successfully stopped the muslim invasion of Europe. Jack Hays crushed the Commanche barbarians in overwhelming and decisive ways and permanently ended attacks from Indians upon the settlers. His bravery is only matched in a few individuals in the history of man, IMO.

While reading a placard near Enchanted Rock Texas this weekend in honor of Texas Ranger, John C. Hays, I couldn't help but think of the total moral tragedy that has become much of California, but mostly from the very land where such a great American once founded.

Jack Coffee Hays, Oakland CA's first mayor

36 posted on 05/12/2008 1:46:17 PM PDT by lormand (Let's all be mavericks now)
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To: Red Badger
I heard they're getting back together (with a few personnel changes of course...)


37 posted on 05/12/2008 1:57:40 PM PDT by reagan_fanatic (Average White Conservative)
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To: GodGunsGuts
This so much reminds me of Income Tax. What we have here is the obvious outcome of the incrementalism in trying to be 'fair' about paying taxes (wry grin) and a governmental need for revenue (more is ALWAYS a good thing). You have a simple law (7% sales tax), but it hurts the poor and sick to have it on food & medicines so they are exempt, but we need more money says the bureaucrats so tax food when it is served but that is unfair to charity events where the money goes for good deeds so ...

The longer a revenue law (probably other laws as well) exists the more 'moss' grows on it until you can hardly see the original simple law that started the whole thing in the first place.

38 posted on 05/12/2008 1:58:08 PM PDT by SES1066 (Cycling to conserve, Conservative to save, Saving to Retire, will Retire to Cycle.)
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To: GovernmentShrinker
Somebody PLEASE tell me this is satire.

So sorry but in this case there is nothing that Mad Magazine nor the Onion can do to 'enhance' this tar baby!

39 posted on 05/12/2008 2:01:21 PM PDT by SES1066 (Cycling to conserve, Conservative to save, Saving to Retire, will Retire to Cycle.)
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To: GodGunsGuts
For everyone who couldn't make it through to the end, these little gems are in the last three paragraphs.

“Whenever the board ascertains that a person has collected excess tax reimbursement, the person will be afforded an opportunity to refund the excess collections to the customers from whom they were collected.”

So a walk-up Starbucks counter operation is supposed to keep track of all the names of all the customers just in case they charge too much sales tax and have to make refunds?

“In the event of failure or refusal of the person to make such refunds, the board will make a determination against the person for the amount of the excess tax reimbursement collected and not previously paid to the state, plus applicable interest and penalty.”

Note the phrase I highlighted. It seems that as long as the excess sales tax has already been remitted to the state, the state is OK on that.

“Based on the information presented in the article, it is not clear why sales tax was collected by Starbucks on the sale of the hot chocolate.”

Well, based on the information YOU have presented, it is obvious that Starbuck’s at Target is charging sales tax “just in case”. It sure isn't because the rules are easily interpreted.

Oh, also note that this one complaint generated 19 CCs, so just imagine how much paper is still flying around CA today.

40 posted on 05/12/2008 2:10:07 PM PDT by Stegall Tx (I didn't leave the Republicans, the Republicans left me.)
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To: reagan_fanatic

LOL


41 posted on 05/12/2008 2:30:40 PM PDT by lormand (Let's all be mavericks now)
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To: GodGunsGuts

Yes.
Yes.
And if you do not comply with the regulations, you are a sinfully despicable lawbreaker.
Shame on you.
You are stealing from “the people” of the State of California!


42 posted on 05/12/2008 3:17:17 PM PDT by XR7
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To: GodGunsGuts

“Board of Equalization” ???

Now, that’s a commie institution, if ever there was one.

When (if) we finally secure the border, we might want to consider sectioning off Kalifornia...


43 posted on 05/12/2008 5:37:32 PM PDT by PubliusMM (RKBA; a matter of fact, not opinion)
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To: reagan_fanatic

LOL!......a little NOLA jazz flavor no doubt!......


44 posted on 05/13/2008 5:09:56 AM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: reagan_fanatic

One of these days I’m gonna go over to NOLA and look for that guy. I bet he doesn’t even know about his “fame”!.................


45 posted on 05/13/2008 5:11:29 AM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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