That's not what they're saying. The counties don't send money. The state sends money to the counties to run welfare and mental health programs. The counties are saying "if we don't get the payments, then we are not providing the services".
I'd actually like to see a few counties shut down their welfare offices and send their clients elsewhere.
Different counties are using different strategies:
Riverside is saying “no money, no services” while LA is saying that they’ll keep the money.
If counties refuse to pay the taxes to the state, can taxpayers refuse to pay the taxes to the counties?”””
That’s not what they’re saying. The counties don’t send money. The state sends money to the counties to run welfare and mental health programs. The counties are saying “if we don’t get the payments, then we are not providing the services”.
I’d actually like to see a few counties shut down their welfare offices and send their clients elsewhere.”””
In Kalifornia:
Counties collect the property taxes, but send it to the state, and then wait for their share to come back.
Sales taxes are sent to the state directly by retailers, and the counties wait for money to come to them to run the schools, and other programs that the state mandates.
This giant money-shuffle is akin to kiting checks.
As of Feb 1, there are no more payments going to Accounts Payable vendors who have supplied services and goods to the state. Kalifornia has been 60+++ days in payments to vendors for years. Now, not even that.
State income tax refunds are also frozen. IOU’s are being discussed being sent to people for refunds on income taxes.
I am encouraging everyone who lives and works in Kalifornia to go to their HR department and change their W-4 to a higher number of exemptions. Then, less State income tax money will be taken out of your paycheck and forwarded to the State. Then you won’t have as much refund coming to you in 2010. You might have to pay something, but you won’t have to plead for you own money to be refunded to you or get an IOU.
Some other posters are threatening that if they get an IOU, they will drop their state income tax deductions on their paychecks to ZERO, and pay their 2009 Kalifornia state income taxes in 2010 with the IOU the state gave them this year!!! Sounds like a good method to me.
Kalifornia is also demanding that anyone getting paid on a 1099 basis, the employer MUST deduct 20% state income tax and forward it to the state, and when and if the 1099 recipient files an income tax return, they will be able to apply the 20% withheld.
I do work for 2 small companies in California, and I get paid on a 1099. I live in Nevada, and there is no income tax here. I make so little money, I don’t even have to file a Federal return. As of now, I am refusing to ding my earnings 20% when I don’t live in California and don’t pay income tax here in Nevada. This could get sticky.
If they try to trap me with some crazy ruling, I will continue to do the work, and find a more inventive method of getting paid.