Wednesday, November 18, 2009

Unfriendly California Business Environment COntinues

Well subscribers, the whacko left-wing state of California has just enacted another law to force EVERY business, not some, every one, to file a Used Tax Registration with the taxing authorities. This is just one step closer to literally taxing everything that moves in this screwed-up state control by none-other-than anti-business democrats! When are the people of this state going to wake-up!

Ronald Reagan said "if it moves tax it. If it keeps moving, regulate it. If it stops moving, subsidize it." We're on step three.

When was the last time a poor person employed people?

California Enacts Qualified Purchasers Act

With ongoing budgetary problems California has enacted a Use Tax registration requirement which applies to any business within the State of California who is defined within the act as a qualified purchaser (Sec. 6066, Revenue & Tax Code).

Effectively anyone or business that purchasers products or services subject to what would normally incur sales taxes must now self asses and pay what is commonly known as the Use Tax which is applied at the same rates as the California Sales Taxes which are dependent upon the location as to where the items or services are consumed or used.

The Use Tax is not new. The registration requirement is, therefore any purchases made that should have had sales taxes added, or purchases made from out of State sources have always been subject to the Use Tax. The new registration requirement will require all purchasers under the new registration requirement to report annually and pay for any escaped taxes.

A “qualified purchaser" is defined as:
A person or business that meets all of the following conditions:
• The person or business receives at least $100,000 in gross receipts from business operations per calendar year. Gross receipts are defined within the act as the total of all receipts from both in-state and out-of-state business operations.
• The person or business is not required to hold a seller's permit or certificate of registration for use tax (under section 6226 of the Revenue and Taxation Code).
• The person or business is not a holder of a use tax direct payment permit.
• The person or business is not otherwise registered with the BOE to report use tax.
Any individual or business that meets these criteria is now immediately required to comply with the new use tax registration requirements. The new law does not differentiate as to type of business, therefore any person or business whether involved in services or the sale of products are required to register with the State Board of Equalization.

The new law is effective as of October 26, 2009 with reporting requirements due not later than April 15 of each year.

We are here to assist you in the registration requirements as well as the compliance with the new filing requirements. Should you need assistance in regards to this very onerous situation we suggest that you contact us directly. The State Board of Equalization has already launched an extensive audit program aimed at those that purchase goods and or qualified services who have not reported or paid the Use Tax in the past, and we are currently working with many clients who have come under this audit program. You do not want to be one of them, and our suggestion is that you contact us first before the State Board of Equalization contacts you.

Should you or your business currently holds a valid State Board of Equalization permit there is no requirement to comply with this new law relating to registration.

We believe that this registration requirement is merely the first step by the State to move towards a sales tax on all products and services as such a proposal has already been made in the State Assembly.

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Friday, November 13, 2009

The Smart Money is Moving into the Restaurant/Bar Business

There is an interesting trend going on in the restaurant and bar selling business. This week we started seeing investors enter the restaurant/bar market. We put 3 deals into contract this week. All three are investors, not operators. All three places are absentee operated. All three have verifiable income.

This is usually where it all begins in every industry after a hard long winter. The investors are jumping! Let’s get those profitable restaurants and bars on the market and let's hope this is a trend!

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Thursday, November 5, 2009

How the Government Politicians Use Panic Syndrom Against Us

Here is yet another example of how politicians use a crisis to gain position on issues they know would never pass under normal circumstances, just as what happen with TARP and the stimulus package. We Americans have to stop this abuse by the politicians who are running up un-godly deficits, killing small business, and capitalism while doing it.

House Bill Would Assure Workers Paid Sick Days
Published: November 3, 2009

In an effort to rein in the spread of the H1N1 flu, Representative George Miller, the chairman of the House Education and Labor Committee, introduced legislation on Tuesday that would guarantee five paid sick days for workers sent home by their employers with a contagious illness.

Mr. Miller, Democrat of California, voiced concern that more than 40 million workers did not have paid sick days and that many workers coming into contact with public — like restaurant or school cafeteria employees — would go to work with H1N1 and spread the virus if they could not afford to stay home.

According to the Bureau of Labor Statistics, 39 percent of all private-sector workers do not receive paid sick days, while among the bottom 25 percent of wage earners, 63 percent do not.

“Sick workers advised to stay home by their employers shouldn’t have to choose between their livelihood and their co-workers’ or customers’ health,” Mr. Miller said. “This will not only protect employees, but it will save employers money by ensuring that sick employees don’t spread infection to co-workers and customers.”

Under Mr. Miller’s, proposal, which he called “emergency temporary” legislation, workers would be guaranteed the five paid days if their employers sent them home or advised them to stay home or go home.

Under the bill, called the Emergency Influenza Containment Act, workers deciding to stay home on their own, asserting that they are sick, would not be guaranteed paid sick days.

The Centers for Disease Control estimates that a sick employee reporting to work would infect 1 in 10 co-workers.

Business groups have opposed legislation requiring paid sick days, calling them expensive employer mandates for something workers and their bosses can usually work out.

The bill would apply to businesses with 15 or more employees. Under the proposed legislation, workers who follow their employer’s direction to stay home because of contagious illness cannot be fired, disciplined or retaliated against for staying home. The bill would take effect 15 days after being signed and would expire after two years.

Mr. Miller said that he planned hearings the week of Nov. 16. “We would like to move it to the floor as soon as possible,” Mr. Miller said in a telephone news briefing. “The influenza isn’t waiting for the legislative calendar.”

Robert J. Blendon, a professor of health policy at Harvard, said that if millions more people contracted H1N1, many workers living paycheck to paycheck and not receiving paid sick days could face a financial crisis if they or their children contracted bad cases that forced the parents to miss work for one or two weeks.

The bill is co-sponsored by Representative Lynn Woolsey, a California Democrat who is chairwoman of the labor committee’s Workforce Protections Subcommittee. “This bill will ensure that workers who are directed to stay home by their employers can do so without paying a financial penalty,” she said.

In May, Senator Edward M. Kennedy, the late Massachusetts Democrat, and Representative Rosa DeLauro, a Connecticut Democrat, introduced bills in the Senate and House that would guarantee seven paid sick days to all workers at businesses with 15 or more employees.

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