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California warns companies they may owe use tax
LA Times ^ | 12/29/08 | Marc Lifsher

Posted on 12/29/2008 10:05:00 AM PST by NormsRevenge

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To: NormsRevenge

California Board of Equalization


These guys make the IRS look like pussycats.

looks like all those offices that bought mail-order computers and big equipment (like dentists and doctors) are going to face some fat sales tax bills.


41 posted on 12/29/2008 10:57:10 AM PST by Atlas Sneezed (Guns don't kill people. Criminals and the governments that create them kill people.)
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To: NormsRevenge

It’s hard for me to understand why any company would want to do business in CA, much less have its headquarters there. Big Business could save a lot of money just by moving out.


42 posted on 12/29/2008 11:00:45 AM PST by Brilliant
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To: Patriotic1

Police and Fire would be an exception for me, but a whole lot of feather merchants would get a trim.


43 posted on 12/29/2008 11:02:44 AM PST by Anti-Bubba182
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To: NormsRevenge

“My Fellow California taxpayers,

“To address our budget deficit, we are immediately cutting all state employee wages, benefits, and pensions by 20%. We know that this will be painful, and lead to some lawsuits. However, anyone who wishes to fight this is effectively fighting YOU, the taxpayers that fund their employment.

“I realize that some employees will quite their jobs and find greener pastures, which will help to reduce our payroll further. Others will find increased workload as they are expected to pick up the slack, and this will lead to further attrition. More attrition will come from those who simply can’t handle the increased demands, and are terminated for failure to perform their new duties.

“We may lose the best and brightest from our state payrolls, but when we are back in balance, we will be able to attract the4 very best of them with compensation based on performance, not bloated union contracts.

“Thank you for your support.

“Governor Arnold.”


44 posted on 12/29/2008 11:03:31 AM PST by Atlas Sneezed (Guns don't kill people. Criminals and the governments that create them kill people.)
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To: NormsRevenge

“”There’s a ton of avoidance that needs to be addressed,” said Lenny Goldberg, executive director of the California Tax Reform Assn., a union-backed group that advocates for a strong public sector and tax fairness.”


45 posted on 12/29/2008 11:07:47 AM PST by Old Professer (The critic writes with rapier pen, dips it twice, then writes again.)
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To: RobRoy
The government ultimately gets all compliance through the barrel of a gun.

"Government is not eloquence, nor is it reason. It is force." George Washington.

L

46 posted on 12/29/2008 11:08:28 AM PST by Lurker ("America is at that awkward stage. " Claire Wolfe, call your office.)
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To: cicero2k

Virtually every reform movement throughout history has been propped up by the high-minded and fair-sounding phrase ‘equality,’ while not one has ever truly realized that equality is only achieved when everyone has nothing.

The dumb and blind tax system is the mechanism that proves the truism, brought up short each time by a new and more draconian regime.

It’s like a giant Pachinko game spun by an endless clockwork.


47 posted on 12/29/2008 11:13:46 AM PST by Old Professer (The critic writes with rapier pen, dips it twice, then writes again.)
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To: NormsRevenge

Does this apply to mail order purchases???


48 posted on 12/29/2008 11:42:49 AM PST by TenthAmendmentChampion (Join us on the best FR thread, 8000+ posts: http://www.freerepublic.com/focus/chat/1990507/posts)
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To: Beelzebubba

My husband works for the City of Fresno, which has a surplus thanks to our wonderful mayor Alan Autry (now term limited out, unfortunately). However, in anticipation of tough times, the city made the employees take an 8% pay cut. I can’t argue with their logic because that’s what everyone has to do in tough times. We’ll get by ok. I am planning to simplify this year by getting rid of a lot of our junk. They say it saves you money.


49 posted on 12/29/2008 11:56:52 AM PST by TenthAmendmentChampion (Join us on the best FR thread, 8000+ posts: http://www.freerepublic.com/focus/chat/1990507/posts)
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To: TenthAmendmentChampion

http://www.boe.ca.gov/pdf/pub79b.pdf


50 posted on 12/29/2008 12:04:37 PM PST by EVO X
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To: princess leah

“Stupid, Stupid politicians...SOmeone needs to run in California who would step up and call out the liberals and tell the PAYING PUBLIC how they can save their state!”

Agreed, but would the people vote for them? They’re the ones who keep electing the same incompetants over and over.


51 posted on 12/29/2008 12:14:41 PM PST by ViLaLuz (2 Chronicles 7:14)
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To: Beelzebubba

“Governor Arnold.”

You will be dead before that socialist ever says such a thing!


52 posted on 12/29/2008 12:30:06 PM PST by dalereed
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To: TenthAmendmentChampion
Does this apply to mail order purchases???

Yes. However, most out of state sellers have no obligation or inclination to report their sales to the California FTB or BOE, so the burden falls on the in-state buyers to voluntarily disclose the purchases. If the buyers don't disclose their out of state purchases, the state of California generally has no way of finding out.

53 posted on 12/29/2008 12:56:53 PM PST by Mojave (http://barackobamajokes.googlepages.com/obama_funny)
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To: RobRoy

Rob, or is it Roy,

I wrote my rather long missive while eating my lunch and on the fly.

So I must use the old political excuse that you quoted me out of context.

Although my quote as you used it IS correct, just using that one quote tends to make it look like your incorrect conclusion about your uncle. Who, as you allege, filled up his trailer with purchased goods from a low or no sales tax state and brought them back to your high sales tax state.

You conclude by the quote from my rather long comment which said plenty more, that your uncle is NOT liable for paying sales tax in your home state but oh YES HE IS!

I said those most states have a “purchase” clause buried in their sales tax rules, yes I did I stated that somewhere in my longish comment. I also said that in scenarios like your Uncle’s that this purchase clause is seldom enforced as the gubmint just doesn’t put much resources into following fellows like your Uncle around and spying on his out-of-state purchases. Goods purchased in another state and SHIPPED to a high sales tax state are much easier tracked but in either case, it’s the reason for that “purchase” clause. States catch all kind of folks for evasion of cigarette taxes based on records of shipment. Again, they may not follow cigarette buyers around but they can easily subpoena company’s shipping records.

But I allow as my response was all over the place. Further, many of yon commenters keep bandying about that USE thing.

The USE word in most states’ sales tax laws is for things like car rentals and certain services. In Maryland, as I know for sure, there is a separate line for sales tax on PURCHASES....ie those items bought from a different state, for which sales tax is not charged....you’ve all seen that little note “Maryland residents add 5% to the total costs”? This is because, I’ll explain again, most states do not force companies to collect sales taxes save for the state in which they do business.

Hey, I don’t want to argue. I hope your Uncle and all other Freepers get away with paying sales tax to any state.

I am trying to clarify misconceptions here is all.


54 posted on 12/29/2008 12:59:19 PM PST by Fishtalk (Tell McCain- stop reaching across the aisle ; America voted for the guy who always voted "present".)
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To: NormsRevenge

Yep, I just closed mine and had to let 4 people go, aint it great.


55 posted on 12/29/2008 12:59:25 PM PST by pmac (From the lawless region of eastern California along the border of free America)
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To: Fishtalk

I was actually just asking an honest question. ;)

You cleared it up nicely. Thanks

It is what I suspected.


56 posted on 12/29/2008 1:18:19 PM PST by RobRoy (Islam is a greater threat to the world today than Nazism was in the 1930's.)
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To: NormsRevenge
Welcome to Kalifornia. Basically the way the Use tax works is that if you purchase an item that will be directly incorporated into a product you sell, you do not owe use tax. The State will collect sales tax when the assembled product is eventually sold to the end user. You have to do that to avoid the state getting sales tax on B to B every time a subunit is moved from one company to the next. Now if you make a purchase for your business of a product or device that is only used to make a product you sell, then you owe use tax. That is why I always purchase hand tools retail and any wholesale purchases are with companies that charge and collect CA state sales tax. The State of Kalifornia actually got the Use tax passed decades ago and they did it to supposedly to protect Kalifornia companies from out of state competition. What a laugh that turned out to be. We should all expect that State, County, City and Federal tax collecting agencies will all be pressured to tighten the screws.
57 posted on 12/29/2008 1:50:38 PM PST by justa-hairyape
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To: NormsRevenge

Flee.
Just flee.


58 posted on 12/29/2008 1:51:31 PM PST by Lancey Howard
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To: RobRoy

Your Uncle sounds like a most clever fellow.

Heh.


59 posted on 12/29/2008 2:20:54 PM PST by Fishtalk (Tell McCain- stop reaching across the aisle ; America voted for the guy who always voted "present".)
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To: Fishtalk

Yeah, he did it something like 15 years ago. Got a big screen TV, Washer and Dryer, some furniture, the works. Drove to Portland from Washington and stocked up.


60 posted on 12/29/2008 2:24:26 PM PST by RobRoy (Islam is a greater threat to the world today than Nazism was in the 1930's.)
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