Do any of you have Adjustable Rate Mortgages? If so do you know when they come up?
A lot of small businesses have used their home as collateral and it is because of that a lot of small businesses will be facing foreclosure.
According to Professor Bernstein California has 60% of these ARMs and note his studies show that there are significant numbers of small businesses that are affected by this especially in the Hispanic Community. See below.
If you would like a copy of the studies please let me know.
One of the bills introduced in this session is AB 10 which increases the minimum wage to $8.50 effective 2012 and in 2012 will include a cost of living adjustment.
How do you feel about this.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
------------------------------------------
From: BornsteinSong@aol.com [mailto:BornsteinSong@aol.com]
Sent: Thursday, March 31, 2011 7:39 AM
To: Scott Hauge
Subject: Hello from Prof. Sam Bornstein. Housing "Double Dip"
Good Morning Scott,
Re: The "double-dip" in housing and the 2nd Tsunami Wave of Foreclosures
In my Testimony before Toni's committee on May 5 and October 19, 2009, I expressed concern for California's small business at the expected 2nd Tsunami Wave of Foreclosures which will result from the Alt-A and Option ARMs resets/recasts. This wave was expected in 2011 through 2012. Well, it is now happening.
"A new industry report yesterday warned that an "enormous backlog of foreclosures" among adjustable rate mortgages, known as option ARMs, is ready to swamp the fragile housing market, where home values have continued to slide for the sixth straight month with no clear bottom in sight. Foreclosures involving ARMs have soared by 23 percent in the past six months alone -- accounting now for 18.8 percent of all foreclosure actions -- a rate higher than subprime mortgages ever reached, said Lender Processing Services, which services about half of US mortgages."
All three of my Bornstein & Song Small Business Toxic Mortgage Surveys: U.S. National (11/08), California (4/09), and California Hispanic (6/09) confirmed that a significant number of small business owners will be part of this foreclosure wave. California will be hit hardest as 60% of these Toxic Mortgages originated in California.
Let's discuss.
Be well,
Sam
Samuel D. Bornstein
Professor of Accounting and Taxation
Kean University, School of Business, Union, NJ
Partner-Bornstein & Song, CPAs & Consultants, Oakhurst, NJ
bornsteinsong@aol.com
Tel: (732) 493 - 4799
Fax: (732) 493 - 3399
Thursday, March 31, 2011
Wednesday, March 30, 2011
I received numerous responses to my email regarding AB 400 [Ma Paid Sick Leave] and the overwhelming majority of you opposed.
For those of you that said you would send letters I am holding back sending our sample letter because I will be meeting with Assemblywoman Ma on Thursday at 4:30. Attending the meeting with me is Board member Stephen Cornell and SF Chamber VP of Public Policy Jim Lazarus.
If you have not responded to the email and would like to send a letter on this please let me know and I will send you sample letter.
For details of bill go to www.leginfo.ca.gov
Small Business California will be supporting SB 823 [Corbett]. There was one Board member who voted to oppose with the rest supporting.
This bill will create a Buy California program which will be voluntary. There was one change we insisted on and that was that the company must be headquartered in California. We think that there are situations where a company is not headquartered in California but does substantial manufacturing in California and therefore should be given the ability so they so choose to be able to label themselves as part of the Buy California program. There are no state funds requested for the program.
Again for full details go to www.leginfo.ca.gov
I hope you find these emails helpful and you agree that Small Business California is providing value to the small business community of California and is representing your interest.
I would again like to point out that our lobbyist, Lori Kammerer, is doing a terrific job for us in Sacramento and attends numerous committee meetings and hearings which makes us very visible. Legislators are approaching us constantly to seek our support because of Lori’s visibility. Lori is paid for her efforts but certainly not what she is worth to the organization.
We also have a political consultant Jim Ross in SF who volunteers his time and does our press releases. All board members and myself are volunteers. I hope you feel we are representing your interest.
To those of you that have joined Small Business California thank you. For those of you that have not I hope you will consider doing so. The cost for businesses with less than $1 million in receipts is $150 a year. For those over $1 million $300. I am bias but I don’t think there is any organization in California that represents the broad interest of California small business better.
You can join On Line by going to www.smallbusinesscalifornia.org
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
For those of you that said you would send letters I am holding back sending our sample letter because I will be meeting with Assemblywoman Ma on Thursday at 4:30. Attending the meeting with me is Board member Stephen Cornell and SF Chamber VP of Public Policy Jim Lazarus.
If you have not responded to the email and would like to send a letter on this please let me know and I will send you sample letter.
For details of bill go to www.leginfo.ca.gov
Small Business California will be supporting SB 823 [Corbett]. There was one Board member who voted to oppose with the rest supporting.
This bill will create a Buy California program which will be voluntary. There was one change we insisted on and that was that the company must be headquartered in California. We think that there are situations where a company is not headquartered in California but does substantial manufacturing in California and therefore should be given the ability so they so choose to be able to label themselves as part of the Buy California program. There are no state funds requested for the program.
Again for full details go to www.leginfo.ca.gov
I hope you find these emails helpful and you agree that Small Business California is providing value to the small business community of California and is representing your interest.
I would again like to point out that our lobbyist, Lori Kammerer, is doing a terrific job for us in Sacramento and attends numerous committee meetings and hearings which makes us very visible. Legislators are approaching us constantly to seek our support because of Lori’s visibility. Lori is paid for her efforts but certainly not what she is worth to the organization.
We also have a political consultant Jim Ross in SF who volunteers his time and does our press releases. All board members and myself are volunteers. I hope you feel we are representing your interest.
To those of you that have joined Small Business California thank you. For those of you that have not I hope you will consider doing so. The cost for businesses with less than $1 million in receipts is $150 a year. For those over $1 million $300. I am bias but I don’t think there is any organization in California that represents the broad interest of California small business better.
You can join On Line by going to www.smallbusinesscalifornia.org
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, March 28, 2011
AB 400/ Christine Baker Named Director of DIR
Small Business California tries to position itself as a proactive organization and I personally want to do the same.
There are times however that we just have to say no. Such is the case with AB 400[MA].
While the Board of SB Cal has not taken a formal position I fully expect we will do so this week.
AB 400 would require after 7 days of employment in a calendar year that employees will start accruing one hour of paid sick leave for every 30 hours worked. This time can be taken after 90 days of employment.
Businesses with less than 10 employees will be required to pay up to 40 hours of paid sick leave and those over 10 will be required to pay up to 72 hours.
Employers will be required to post notices of this and keep track of hours worked. They will also be required to notify employees of how much time they have available for paid sick leave.
In a time when California is looking to reduce regulatory burdens on small business it is amazing that not only has this bill been introduced but it has a good chance of passage.
For more information go to www.smallbusinesscalifornia .org If you would like to write a letter of opposition and want a sample letter please let me know.
Also let me know your zip code. I honestly believe this is the most significant bill in this session for small business and we must get our voices heard.
On the positive side our good friend Christine Baker has been named to head up the Department of Industrial Relations.
Small Business California a strong supporter of Christine and spoke out for her appointment. In our meeting with Labor Secretary Morgenstern we asked him to support her. Christine has served as the Director of the Commission on Health Safety and Workers Compensation where we have worked closely with her and Judge Lach Taylor.
Small Business California in 2008 named Christine a Small Business Hero.
Congratulations Christine and we look forward to working with you in your new position.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
415-680-2109
There are times however that we just have to say no. Such is the case with AB 400[MA].
While the Board of SB Cal has not taken a formal position I fully expect we will do so this week.
AB 400 would require after 7 days of employment in a calendar year that employees will start accruing one hour of paid sick leave for every 30 hours worked. This time can be taken after 90 days of employment.
Businesses with less than 10 employees will be required to pay up to 40 hours of paid sick leave and those over 10 will be required to pay up to 72 hours.
Employers will be required to post notices of this and keep track of hours worked. They will also be required to notify employees of how much time they have available for paid sick leave.
In a time when California is looking to reduce regulatory burdens on small business it is amazing that not only has this bill been introduced but it has a good chance of passage.
For more information go to www.smallbusinesscalifornia .org If you would like to write a letter of opposition and want a sample letter please let me know.
Also let me know your zip code. I honestly believe this is the most significant bill in this session for small business and we must get our voices heard.
On the positive side our good friend Christine Baker has been named to head up the Department of Industrial Relations.
Small Business California a strong supporter of Christine and spoke out for her appointment. In our meeting with Labor Secretary Morgenstern we asked him to support her. Christine has served as the Director of the Commission on Health Safety and Workers Compensation where we have worked closely with her and Judge Lach Taylor.
Small Business California in 2008 named Christine a Small Business Hero.
Congratulations Christine and we look forward to working with you in your new position.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
415-680-2109
Friday, March 25, 2011
SBA Loans/ AB153 SF Chamber Supports Out of State Internet Tax
I was talking to Tony Wilkinson the head of the National Association of Government Guaranteed Lenders yesterday about SBA 7a lending for the fiscal year Oct 1 2010 to Oct 1 2011.
He indicated that as of March 18th the SBA had done $11.4 billion of 7a loans. This compares favorably with last year’s amount of the same time of $6.8 billion. Clearly there is demand for these loans but there continues to be problems with conventional small business loans.
While it is true that the Small Business Jobs Act played a role in the increase and increasing the loan size to $5 million had some impact Tony went on to say that after the 90% guarantee and the waiver of fees dropped off demand went down for about a month but has come back and he thinks the $17.5 billion authorized will run out before the fiscal year ends. The small business community needs to monitor these developments and if necessary speak out for the need to increase the authorization.
Yesterday the San Francisco Chamber voted to support Assemblywoman Skinners AB 153 requiring out of state internet companies to collect state sales taxes. As you know Small Business California is a strong supporter of this bill as it will level the playing field for brick and mortar stores and will take the administrative burden of tracking these purchases away from the business and place it on the out of state internet seller.
What is significant in the Chambers position is they originally were going to be neutral. This change was made because a small business committee at the Chamber asked for reconsideration and the vote was changed. Bravo to the SF Chamber and thank you.
If you are a member of a local Chamber or any business organization ask them to support AB 153. If you need a copy of SB Cal’s letter please let me know.
If you have received one of the 300,000 letters recently sent out by the Board of Equalization asking you to account for three years of receipts and pay any outstanding money on out of state internet purchases please let me know.
How long will/did it take you to go over your records.
Will you have to pay any penalties and interest.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
He indicated that as of March 18th the SBA had done $11.4 billion of 7a loans. This compares favorably with last year’s amount of the same time of $6.8 billion. Clearly there is demand for these loans but there continues to be problems with conventional small business loans.
While it is true that the Small Business Jobs Act played a role in the increase and increasing the loan size to $5 million had some impact Tony went on to say that after the 90% guarantee and the waiver of fees dropped off demand went down for about a month but has come back and he thinks the $17.5 billion authorized will run out before the fiscal year ends. The small business community needs to monitor these developments and if necessary speak out for the need to increase the authorization.
Yesterday the San Francisco Chamber voted to support Assemblywoman Skinners AB 153 requiring out of state internet companies to collect state sales taxes. As you know Small Business California is a strong supporter of this bill as it will level the playing field for brick and mortar stores and will take the administrative burden of tracking these purchases away from the business and place it on the out of state internet seller.
What is significant in the Chambers position is they originally were going to be neutral. This change was made because a small business committee at the Chamber asked for reconsideration and the vote was changed. Bravo to the SF Chamber and thank you.
If you are a member of a local Chamber or any business organization ask them to support AB 153. If you need a copy of SB Cal’s letter please let me know.
If you have received one of the 300,000 letters recently sent out by the Board of Equalization asking you to account for three years of receipts and pay any outstanding money on out of state internet purchases please let me know.
How long will/did it take you to go over your records.
Will you have to pay any penalties and interest.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Tuesday, March 22, 2011
ACA Call In/ Workers Compensation
Thank you to all of you that came yesterday to the Small Business California/ Insure the Uninsured Project forum on the health bill passed a year ago.
Today Small Business California/ Small Business Majority and SBA will have a call in at 1:30 on the impacts of the health bill on California small businesses. Please see information below.
Even though rates have gone down dramatically for businesses in California for workers compensation coverage they are still among the highest in the country. Yesterday I received a policy written in Washington DC and the rates per hundred for clerical payroll was 17 cents and outside sales 20 cents.
This compares with California who’s clerical rate is around 65 cents and outside sales 76 cents. These rates do vary but company but I would suspect most of you are in that range.
Speaking of workers compensation if you have an experience modification you may well see an increase because of changes that have been made by the Bureau. The expected loss rates have gone down, your payroll may be down and they have made some changes in charges for losses. You may want to contact your broker to see what impact this will have on you.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Today Small Business California/ Small Business Majority and SBA will have a call in at 1:30 on the impacts of the health bill on California small businesses. Please see information below.
Even though rates have gone down dramatically for businesses in California for workers compensation coverage they are still among the highest in the country. Yesterday I received a policy written in Washington DC and the rates per hundred for clerical payroll was 17 cents and outside sales 20 cents.
This compares with California who’s clerical rate is around 65 cents and outside sales 76 cents. These rates do vary but company but I would suspect most of you are in that range.
Speaking of workers compensation if you have an experience modification you may well see an increase because of changes that have been made by the Bureau. The expected loss rates have gone down, your payroll may be down and they have made some changes in charges for losses. You may want to contact your broker to see what impact this will have on you.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, March 18, 2011
Assembly Bill 52
Yesterday I received a call from Assemblyman Feuer asking that Small Business California support his bill AB 52.
AB 52 would require health plans and insurers obtain approval from state regulators before changing health insurance rates. Under this bill, the Department of Managed Care[DMHC] and the California Department of Insurance[CDI] would have regulatory authority to approve, deny or modify rate changes.
It requires plans and insurers to submit to the departments explanatory information and allows the departments to hold public hearing on these rate changes. It also would prohibit insurers from proposing rate changes on each product more than once a year.
Currently the DMHC and CDI have authority to review whether or not proposed rate increases are excessive, unjustified or unfairly discriminatory, but neither department has the authority to reject such an increase.
The argument for this bill according to the author is that from 1999 to 2010 health insurance premiums for families rose 131% while the general rate of inflation increased 28% according to the Kaiser Family Foundation.
The same report states that the states with robust and transparent rate review and approval processes have greater power to protect consumers. AB 52 would put California in line with 35 states that require some form of prior health insurance rate approval.
The argument against the proposal is that there is competition in the insurance industry and rising cost have been the result of the increase cost of medical care. It is also argued that the department will be under political pressure to keep rates artificially low.
They cite the example of the previous Insurance Commissioner who twice recommended 0% increase in workers compensation pure loss rates when his own actuaries cited the need for over 15% increases.
Obviously health insurance premiums are a big problem for California small businesses.
What is your position on this bill?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
AB 52 would require health plans and insurers obtain approval from state regulators before changing health insurance rates. Under this bill, the Department of Managed Care[DMHC] and the California Department of Insurance[CDI] would have regulatory authority to approve, deny or modify rate changes.
It requires plans and insurers to submit to the departments explanatory information and allows the departments to hold public hearing on these rate changes. It also would prohibit insurers from proposing rate changes on each product more than once a year.
Currently the DMHC and CDI have authority to review whether or not proposed rate increases are excessive, unjustified or unfairly discriminatory, but neither department has the authority to reject such an increase.
The argument for this bill according to the author is that from 1999 to 2010 health insurance premiums for families rose 131% while the general rate of inflation increased 28% according to the Kaiser Family Foundation.
The same report states that the states with robust and transparent rate review and approval processes have greater power to protect consumers. AB 52 would put California in line with 35 states that require some form of prior health insurance rate approval.
The argument against the proposal is that there is competition in the insurance industry and rising cost have been the result of the increase cost of medical care. It is also argued that the department will be under political pressure to keep rates artificially low.
They cite the example of the previous Insurance Commissioner who twice recommended 0% increase in workers compensation pure loss rates when his own actuaries cited the need for over 15% increases.
Obviously health insurance premiums are a big problem for California small businesses.
What is your position on this bill?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Thursday, March 17, 2011
The Affordable Care Act & California Small Business
I have sent notices to SF businesses about a meeting Small Business California and the Insure the Uninsured Project will be doing March 21 from 4 to 5:30 at Hanson Bridgett. They are located at 425 Market street 26th floor.
March 21st has been declared National Small Business Day for the passage one year ago of the Patient Protection Affordable Care Act (PPACA).
I am pleased to announce that Herb Schultz will be joining us. He is the Region 9 director of the US Health and Human Services. For those of you in the area there is still space available if would like to attend.
Please contact Maryann Cello at 415-680-2110 or mcello@cal-insure.com if you would like to attend.
For those of you around California you are invited to call into a conference call March 22 at 1:30. Small Business California and Small Business Majority will be hosting this event on the PPACA and will have as our guest SBA Regional Administrator Elizabeth Echols. See details below.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
One YearLater:
The Affordable Care Act and California Small Businesses
On March 23, 2010, the Patient Protection and Affordable Care Act (ACA) was enacted, bringing about significant change for small businesses. Over the past year:
• Tax credits have been made available to help employers afford health insurance
• A high-risk pool has been set up for self-employed individuals with preexisting health conditions to purchase coverage
• Work has begun on the state’s health benefit exchange, a new marketplace for small businesses to buy private health insurance with increased purchasing power and decreased administrative costs
As we approach the one-year anniversary of this law, the Small Business Administration (SBA) is partnering with Small Business California and Small Business Majority to hear directly from the state’s small employers about the new law, what its impact has been, how it should be implemented and how the law can be improved. SBA Regional Administrator Elizabeth Echols will join us to listen to your comments and answer your questions.
Please join us via conference call for this opportunity to have your views heard and be a part of this important discussion.
Date: March 22, 2011 Time: 1:30pm PDT Conference dial-in number: (712) 432-0075 Access code: 962512
Participation is free. Please RSVP to David Chase at:
dchase@smallbusinessmajority.org
Note: We have limited space available to attend this meeting in-person in San Francisco. If you would like to join the discussion in-person, please contact David Chase for more information.
For more information:
David Chase
Small Business Majority
916-479-1045
dchase@smallbusinessmajority.org
March 21st has been declared National Small Business Day for the passage one year ago of the Patient Protection Affordable Care Act (PPACA).
I am pleased to announce that Herb Schultz will be joining us. He is the Region 9 director of the US Health and Human Services. For those of you in the area there is still space available if would like to attend.
Please contact Maryann Cello at 415-680-2110 or mcello@cal-insure.com if you would like to attend.
For those of you around California you are invited to call into a conference call March 22 at 1:30. Small Business California and Small Business Majority will be hosting this event on the PPACA and will have as our guest SBA Regional Administrator Elizabeth Echols. See details below.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
One YearLater:
The Affordable Care Act and California Small Businesses
On March 23, 2010, the Patient Protection and Affordable Care Act (ACA) was enacted, bringing about significant change for small businesses. Over the past year:
• Tax credits have been made available to help employers afford health insurance
• A high-risk pool has been set up for self-employed individuals with preexisting health conditions to purchase coverage
• Work has begun on the state’s health benefit exchange, a new marketplace for small businesses to buy private health insurance with increased purchasing power and decreased administrative costs
As we approach the one-year anniversary of this law, the Small Business Administration (SBA) is partnering with Small Business California and Small Business Majority to hear directly from the state’s small employers about the new law, what its impact has been, how it should be implemented and how the law can be improved. SBA Regional Administrator Elizabeth Echols will join us to listen to your comments and answer your questions.
Please join us via conference call for this opportunity to have your views heard and be a part of this important discussion.
Date: March 22, 2011 Time: 1:30pm PDT Conference dial-in number: (712) 432-0075 Access code: 962512
Participation is free. Please RSVP to David Chase at:
dchase@smallbusinessmajority.org
Note: We have limited space available to attend this meeting in-person in San Francisco. If you would like to join the discussion in-person, please contact David Chase for more information.
For more information:
David Chase
Small Business Majority
916-479-1045
dchase@smallbusinessmajority.org
Monday, March 14, 2011
News Release: Jerome Horton, BOE Chairman, Announces that Service Businesses Must Pay Use Tax
Sorry to send another email but this is going to be a nightmare. The BOE has sent out these notices to 200,000 service businesses. All were required to look at three years of purchases.
Now we have 300,000 more of you. This is a time consuming process and in my mind why we need the out of state internet tax passed so small businesses don’t have to do all this record keeping.
This information was confirmed by BOE.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
FOR IMMEDIATE RELEASE
NR# 41-11-H
Date: March 14, 2011
Contact: Anita Gore
Communications Office
916-327-8988
BOE Newsroom
Jerome Horton, BOE Chairman, Announces that Service Businesses Must Pay Use Tax
Jerome E. Horton, Chairman of the California Board of Equalization (BOE), has directed BOE staff to notify nearly 300,000 service business owners that they may owe use tax.
The new law, which is included in Section 6225 of the Revenue and Taxation Code, requires businesses that meet the definition of a "qualified purchaser" to register with the BOE and to file returns by April 15 (April 18 in 2011) of each year, reporting all purchases subject to use tax from the previous calendar year.
A qualified purchaser is a business that receives at least $100,000 in gross receipts per year from business operations, is not required to hold a seller's permit with BOE, is not a holder of a use tax direct payment permit, is not required to be registered with the BOE, and is not otherwise registered with the BOE to report use tax.
Businesses that do not meet the $100,000 gross receipts threshold are still required to report and pay use tax, but are not required to register with the BOE for that purpose. Persons that have multiple businesses with the same ownership must register if the aggregate gross receipts of those businesses meet or exceed the $100,000 threshold.
“Use tax, which has been the law since 1935, is owed when individuals or businesses in California use, consume, give away or store tangible personal property (things you can see, weigh, feel or touch) that they purchase from out-of-state sellers,” Horton explained, “including purchases from online retailers like Amazon.com, through the mail, or over the telephone.”
The BOE offers information on its website at www.boe.ca.gov to help educate taxpayers on their tax obligations so that they may voluntarily comply and possibly avoid unnecessary filing delays and penalties. In addition, to simplify the registration process, new applicants have been automatically registered to eFile their returns for 2008, 2009 and 2010. And finally, if the taxpayer is not a retailer or service business currently required to register with the BOE, the easiest way to report and pay use tax is on the California state income tax return. You may also register with the BOE as a consumer to pay use tax.
Elected in 2010, Horton is the Fourth District Member of the California State BOE, representing more than 8.5 million residents in Los Angeles County and also serves as the BOE Legislative Committee chairman. Horton previously served as an Assembly Member of the California State Assembly from 2000-2006.
The five-member California State Board of Equalization is a publicly elected tax board. The BOE collects more than $48 billion annually in taxes and fees supporting state and local government services. The BOE hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other California taxes and fees, visit www.taxes.ca.gov.
Additional online reference information is available:
Frequently asked questions,
http://www.boe.ca.gov/sutax/useTaxRegFAQ.htm
Publication 126, Use Tax Registration for Service Enterprises,
http://www.boe.ca.gov/pdf/pub126.pdf
Use Tax eFile Tutorial
http://www.boe.ca.gov/elecsrv/efiling/efile_demo/efile_use_tax.htm
Now we have 300,000 more of you. This is a time consuming process and in my mind why we need the out of state internet tax passed so small businesses don’t have to do all this record keeping.
This information was confirmed by BOE.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
FOR IMMEDIATE RELEASE
NR# 41-11-H
Date: March 14, 2011
Contact: Anita Gore
Communications Office
916-327-8988
BOE Newsroom
Jerome Horton, BOE Chairman, Announces that Service Businesses Must Pay Use Tax
Jerome E. Horton, Chairman of the California Board of Equalization (BOE), has directed BOE staff to notify nearly 300,000 service business owners that they may owe use tax.
The new law, which is included in Section 6225 of the Revenue and Taxation Code, requires businesses that meet the definition of a "qualified purchaser" to register with the BOE and to file returns by April 15 (April 18 in 2011) of each year, reporting all purchases subject to use tax from the previous calendar year.
A qualified purchaser is a business that receives at least $100,000 in gross receipts per year from business operations, is not required to hold a seller's permit with BOE, is not a holder of a use tax direct payment permit, is not required to be registered with the BOE, and is not otherwise registered with the BOE to report use tax.
Businesses that do not meet the $100,000 gross receipts threshold are still required to report and pay use tax, but are not required to register with the BOE for that purpose. Persons that have multiple businesses with the same ownership must register if the aggregate gross receipts of those businesses meet or exceed the $100,000 threshold.
“Use tax, which has been the law since 1935, is owed when individuals or businesses in California use, consume, give away or store tangible personal property (things you can see, weigh, feel or touch) that they purchase from out-of-state sellers,” Horton explained, “including purchases from online retailers like Amazon.com, through the mail, or over the telephone.”
The BOE offers information on its website at www.boe.ca.gov to help educate taxpayers on their tax obligations so that they may voluntarily comply and possibly avoid unnecessary filing delays and penalties. In addition, to simplify the registration process, new applicants have been automatically registered to eFile their returns for 2008, 2009 and 2010. And finally, if the taxpayer is not a retailer or service business currently required to register with the BOE, the easiest way to report and pay use tax is on the California state income tax return. You may also register with the BOE as a consumer to pay use tax.
Elected in 2010, Horton is the Fourth District Member of the California State BOE, representing more than 8.5 million residents in Los Angeles County and also serves as the BOE Legislative Committee chairman. Horton previously served as an Assembly Member of the California State Assembly from 2000-2006.
The five-member California State Board of Equalization is a publicly elected tax board. The BOE collects more than $48 billion annually in taxes and fees supporting state and local government services. The BOE hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other California taxes and fees, visit www.taxes.ca.gov.
Additional online reference information is available:
Frequently asked questions,
http://www.boe.ca.gov/sutax/useTaxRegFAQ.htm
Publication 126, Use Tax Registration for Service Enterprises,
http://www.boe.ca.gov/pdf/pub126.pdf
Use Tax eFile Tutorial
http://www.boe.ca.gov/elecsrv/efiling/efile_demo/efile_use_tax.htm
Governor Budget/ Toni Symonds/ Clinic by the Bay
The Governor has put forth a budget which includes $14 billion of taxes most of which are a continuation of taxes set to sunset this year and budget cuts to balance the $25 plus billion budget deficit.
Time is running short to get this on the June ballot.
Would you support a five year extension of the taxes which include a 1% sales tax, a .5 increase in vehicle license fees and a surcharge of .25 tax on income. It is estimated the Governor has cut $12 billion.
Do you support this?
Would you support this is there was a cap on pensions and other pension reforms?
Do you think the voters should be allowed to decide one way or the other.
On Tuesday March 15th our good friend Toni Symonds the Chief Consultant, Assembly Committee on Jobs,Economic Development and the Economy will be honored at the SBDC’s Partners In Success event.
Toni has been a great friend of Small Business California and the entire small business community in California. Congratulations Toni on a well deserved award. For those of you that want to thank Toni you can email her at: Toni.Symonds@asm.ca.gov
Many of you have contributed to Clinic by the Bay. Thank you.
Please see our accomplishments to date in newsletter below. Note we have registered 133 friends and neighbors[our word for patients] and seen almost 200 riends and neighbors.
For those of you in SF area I hope you will save the date of May 18 from 6 to 7:30 for our spring fund raiser. For others around the state I hope you might consider making a contribution by going to www.clinicbythebay.org.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
C l i n i c b y t h e B a y - SPRING 2011
"May we have eyes to see those who are rendered invisible and excluded, open arms and hearts to reach out and include them, healing hands to touch their lives with love, and in the process heal ourselves."
IN THE NEWS
Visit our You Tube channel to view TV news coverage (in English and Spanish) of our Grand Opening on November 9, 2011.
SAVE THE DATE
"Believe It!"
JOIN US for our Spring Fundraiser Event at
Credo Restaurant, San Francisco
Wednesday, May 18, 2011
6:00 - 7:30 PM
More details coming soon!
DONOR PROFILE
We are grateful to the McKesson Foundation for their strong, consistent support since January 2009.
President Carrie Varoquiers explains how the McKesson's partnership with Clinic by the Bay has been a good fit over the last three years:
"Supporting a volunteer-driven organization like Clinic by the Bay aligns perfectly with the McKesson Foundation's focus on providing healthcare for the underserved while simultaneously allowing us to stretch our dollars for maximum impact."
MEET OUR STAFF
Introducing our new Clinic Manager!
Maria Silveira, RN, ANP-BC, MPH is an Adult Nurse Practitioner with clinical experience in a diversity of settings throughout San Francisco, including San Francisco General Hospital, Laguna Honda Hospital, and the San Francisco Veterans Affairs Medical Center. Maria also has several years of experience managing clinical research studies.
HEALTH EDUCATION
Our free monthly workshops take place at the clinic. All community members are welcome. Please call 415-405-0222 to reserve a spot! Upcoming workshop:
What Did My Doctor Say? (Health Literacy)
Wednesday, April 13, 2011
6:00 PM - 7:00 PM
Saturday, April 16, 2011
11:00 AM - 12:00 PM
CLINIC HOURS
Eligibility Screening & Registration:
Mondays 4:00 pm - 6:00 pm
Wednesdays 11:30 am - 1:30 pm
Primary Care Clinic
for Registered Patients:
Tuesdays 4:00 pm - 8:00 pm
Thursdays 2:00 pm - 6:00 pm
Available Services:
Primary and preventive care, general health exams, prescription assistance, specialty care referral, community resource referrals, health education
Clinic by the Bay Springs Forward - our accomplishments to date
We’re excited to share our progress over the last five months, since we first became a primary care medical home to our working uninsured neighbors in the Excelsior neighborhood and Daly City.
Currently, 133 people who previously did not have access to health care now have a primary care medical home at Clinic by the Bay. We have also completed nearly 200 patient visits to date.
Our patient visits are 45-60 minutes, much longer than traditional primary care, allowing patients and providers to develop deeper relationships. Each new patient visit includes integrated medical, mental health and dental screenings. Moreover, our patients are generally able to see a provider within one week, and occasionally within the same day. (See Patient Profile below.)
Thanks to our strong community and medical partnerships, our patients receive a seamless coordination of care. Over the last five months, we provided our patients with 193 referrals for specialty services, such as lab work, x-rays, mammograms, optometry, as well as other supportive services (e.g., employment counseling, financial assistance, bereavement support).
Clinic by the Bay fosters a "Culture of Caring" throughout the organization; caring for the person, not only their illness. We are grateful to all of our contributors, volunteers, and partners for helping us provide compassionate care to our neighbors.
Volunteer Spotlight
To date, we have trained 53 volunteers who have contributed over 1900 hours of service, valued at $68,000. Karen and Loretta are two of our non-medical volunteers who have been with us from the beginning.
KAREN SPRADLING
Karen Spradling first contacted Clinic by the Bay after reading an article about Coming of Age - Bay Area, one of our key community partners and a volunteer organization that harnesses the experience, talents and skills of people 50+ . Karen participated in our very first volunteer training in July 2010. She quickly proved to be a great fit at the clinic, given her extensive background in health care and business administration, her strong computer skills, and a familiarity with medical terminology.
As an eligibility screener, Karen interviews potential patients to verify that they meet the requirements to receive our services. She also conducts initial interviews with potential volunteers and helps us maintain accurate volunteer tracking through our online volunteer management database.
Karen says, “I feel I’m really making a difference when I’m here at the clinic, and by extension, I’m helping those who really need health care the most, people who otherwise aren’t getting the care they need. Patients who do find us are so grateful for the care they receive, and they are every bit as deserving of good quality health care as I am.”
LORETTA TAYLOR
Loretta Taylor first learned about us from her husband Lachlan, after he made a surprise donation to the clinic. Equally inspired by the clinic’s mission, she immediately signed up for our first volunteer training. She brings to the clinic over 24 years of experience in patient education and early childhood development.
Currently, Loretta welcomes our patients and provides administrative support, including the critical setup of our exam rooms every week. Most notably, she created the clinic’s official safety procedure manual. She hopes to become even more involved in patient education as our health education programming continues to expand.
“It feels good to walk into Clinic by the Bay every day that I’m there,” Loretta shares proudly. “The energy is wonderful, the atmosphere is positive, and people are there because they want to be there. Whether I’m answering the phone or stocking the exam rooms, each week I know I have a part in ensuring each patient’s needs are met.”
For more information about volunteer opportunities, please contact Eliza Gibson at eliza@clinicbythebay.org.
MEDICAL PARTNER
UCSF Medical Center is one of our key medical partners, providing clinically necessary lab tests for our patients.
UCSF has proven to be consistently flexible and responsive, helping us create a seamless coordination of care. “Partnering with UCSF provides Clinic by the Bay the opportunity to tap into the best medical minds and resources available anywhere for our patients,“ says Dr. Paul Turek, one of our founding board members and the chair of our Medical Advisory Board.
Regarding our partnership with UCSF, Medical Director Dr. Joshua Adler adds, “At UCSF, we believe that the innovative model of care developed by Clinic by the Bay may be one of a number of solutions to the challenge of providing affordable health care to currently underserved communities. UCSF is very pleased to partner with Clinic by the Bay in caring for patients through the provision of high quality laboratory services.”
Our Founders Wall
We would like to extend a special thank you to our founders who contributed gifts to Clinic by the Bay between September 10, 2008 and July 15, 2010. These donors are now memorialized on our Founders Wall, prominently displayed in the clinic's entryway. This wall will stand as a proud testament to the faith of the clinic's founding friends and supporters for many years to come.
Thank you to all of our supporters!
Clinic by the Bay is a locally funded effort to meet the needs of our friends and neighbors who do not have regular access to medical care. Clinic programs and services are made possible in part by: AT&T, CAL Insurance & Associates, California HealthCare Foundation, California Pacific Medical Center, Clif Bar Family Foundation, HEDCO Foundation, McKesson Foundation, Mount Zion Health Fund of the Jewish Community Fund, Quest Diagnostics Foundation, and Safeway Foundation.
CLINIC BY THE BAY
4877 MISSION STREET SAN FRANCISCO, CA 94112 (415) 405-0222
Please visit our website at http://www.clinicbythebay.org/
Time is running short to get this on the June ballot.
Would you support a five year extension of the taxes which include a 1% sales tax, a .5 increase in vehicle license fees and a surcharge of .25 tax on income. It is estimated the Governor has cut $12 billion.
Do you support this?
Would you support this is there was a cap on pensions and other pension reforms?
Do you think the voters should be allowed to decide one way or the other.
On Tuesday March 15th our good friend Toni Symonds the Chief Consultant, Assembly Committee on Jobs,Economic Development and the Economy will be honored at the SBDC’s Partners In Success event.
Toni has been a great friend of Small Business California and the entire small business community in California. Congratulations Toni on a well deserved award. For those of you that want to thank Toni you can email her at: Toni.Symonds@asm.ca.gov
Many of you have contributed to Clinic by the Bay. Thank you.
Please see our accomplishments to date in newsletter below. Note we have registered 133 friends and neighbors[our word for patients] and seen almost 200 riends and neighbors.
For those of you in SF area I hope you will save the date of May 18 from 6 to 7:30 for our spring fund raiser. For others around the state I hope you might consider making a contribution by going to www.clinicbythebay.org.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
C l i n i c b y t h e B a y - SPRING 2011
"May we have eyes to see those who are rendered invisible and excluded, open arms and hearts to reach out and include them, healing hands to touch their lives with love, and in the process heal ourselves."
IN THE NEWS
Visit our You Tube channel to view TV news coverage (in English and Spanish) of our Grand Opening on November 9, 2011.
SAVE THE DATE
"Believe It!"
JOIN US for our Spring Fundraiser Event at
Credo Restaurant, San Francisco
Wednesday, May 18, 2011
6:00 - 7:30 PM
More details coming soon!
DONOR PROFILE
We are grateful to the McKesson Foundation for their strong, consistent support since January 2009.
President Carrie Varoquiers explains how the McKesson's partnership with Clinic by the Bay has been a good fit over the last three years:
"Supporting a volunteer-driven organization like Clinic by the Bay aligns perfectly with the McKesson Foundation's focus on providing healthcare for the underserved while simultaneously allowing us to stretch our dollars for maximum impact."
MEET OUR STAFF
Introducing our new Clinic Manager!
Maria Silveira, RN, ANP-BC, MPH is an Adult Nurse Practitioner with clinical experience in a diversity of settings throughout San Francisco, including San Francisco General Hospital, Laguna Honda Hospital, and the San Francisco Veterans Affairs Medical Center. Maria also has several years of experience managing clinical research studies.
HEALTH EDUCATION
Our free monthly workshops take place at the clinic. All community members are welcome. Please call 415-405-0222 to reserve a spot! Upcoming workshop:
What Did My Doctor Say? (Health Literacy)
Wednesday, April 13, 2011
6:00 PM - 7:00 PM
Saturday, April 16, 2011
11:00 AM - 12:00 PM
CLINIC HOURS
Eligibility Screening & Registration:
Mondays 4:00 pm - 6:00 pm
Wednesdays 11:30 am - 1:30 pm
Primary Care Clinic
for Registered Patients:
Tuesdays 4:00 pm - 8:00 pm
Thursdays 2:00 pm - 6:00 pm
Available Services:
Primary and preventive care, general health exams, prescription assistance, specialty care referral, community resource referrals, health education
Clinic by the Bay Springs Forward - our accomplishments to date
We’re excited to share our progress over the last five months, since we first became a primary care medical home to our working uninsured neighbors in the Excelsior neighborhood and Daly City.
Currently, 133 people who previously did not have access to health care now have a primary care medical home at Clinic by the Bay. We have also completed nearly 200 patient visits to date.
Our patient visits are 45-60 minutes, much longer than traditional primary care, allowing patients and providers to develop deeper relationships. Each new patient visit includes integrated medical, mental health and dental screenings. Moreover, our patients are generally able to see a provider within one week, and occasionally within the same day. (See Patient Profile below.)
Thanks to our strong community and medical partnerships, our patients receive a seamless coordination of care. Over the last five months, we provided our patients with 193 referrals for specialty services, such as lab work, x-rays, mammograms, optometry, as well as other supportive services (e.g., employment counseling, financial assistance, bereavement support).
Clinic by the Bay fosters a "Culture of Caring" throughout the organization; caring for the person, not only their illness. We are grateful to all of our contributors, volunteers, and partners for helping us provide compassionate care to our neighbors.
Volunteer Spotlight
To date, we have trained 53 volunteers who have contributed over 1900 hours of service, valued at $68,000. Karen and Loretta are two of our non-medical volunteers who have been with us from the beginning.
KAREN SPRADLING
Karen Spradling first contacted Clinic by the Bay after reading an article about Coming of Age - Bay Area, one of our key community partners and a volunteer organization that harnesses the experience, talents and skills of people 50+ . Karen participated in our very first volunteer training in July 2010. She quickly proved to be a great fit at the clinic, given her extensive background in health care and business administration, her strong computer skills, and a familiarity with medical terminology.
As an eligibility screener, Karen interviews potential patients to verify that they meet the requirements to receive our services. She also conducts initial interviews with potential volunteers and helps us maintain accurate volunteer tracking through our online volunteer management database.
Karen says, “I feel I’m really making a difference when I’m here at the clinic, and by extension, I’m helping those who really need health care the most, people who otherwise aren’t getting the care they need. Patients who do find us are so grateful for the care they receive, and they are every bit as deserving of good quality health care as I am.”
LORETTA TAYLOR
Loretta Taylor first learned about us from her husband Lachlan, after he made a surprise donation to the clinic. Equally inspired by the clinic’s mission, she immediately signed up for our first volunteer training. She brings to the clinic over 24 years of experience in patient education and early childhood development.
Currently, Loretta welcomes our patients and provides administrative support, including the critical setup of our exam rooms every week. Most notably, she created the clinic’s official safety procedure manual. She hopes to become even more involved in patient education as our health education programming continues to expand.
“It feels good to walk into Clinic by the Bay every day that I’m there,” Loretta shares proudly. “The energy is wonderful, the atmosphere is positive, and people are there because they want to be there. Whether I’m answering the phone or stocking the exam rooms, each week I know I have a part in ensuring each patient’s needs are met.”
For more information about volunteer opportunities, please contact Eliza Gibson at eliza@clinicbythebay.org.
MEDICAL PARTNER
UCSF Medical Center is one of our key medical partners, providing clinically necessary lab tests for our patients.
UCSF has proven to be consistently flexible and responsive, helping us create a seamless coordination of care. “Partnering with UCSF provides Clinic by the Bay the opportunity to tap into the best medical minds and resources available anywhere for our patients,“ says Dr. Paul Turek, one of our founding board members and the chair of our Medical Advisory Board.
Regarding our partnership with UCSF, Medical Director Dr. Joshua Adler adds, “At UCSF, we believe that the innovative model of care developed by Clinic by the Bay may be one of a number of solutions to the challenge of providing affordable health care to currently underserved communities. UCSF is very pleased to partner with Clinic by the Bay in caring for patients through the provision of high quality laboratory services.”
Our Founders Wall
We would like to extend a special thank you to our founders who contributed gifts to Clinic by the Bay between September 10, 2008 and July 15, 2010. These donors are now memorialized on our Founders Wall, prominently displayed in the clinic's entryway. This wall will stand as a proud testament to the faith of the clinic's founding friends and supporters for many years to come.
Thank you to all of our supporters!
Clinic by the Bay is a locally funded effort to meet the needs of our friends and neighbors who do not have regular access to medical care. Clinic programs and services are made possible in part by: AT&T, CAL Insurance & Associates, California HealthCare Foundation, California Pacific Medical Center, Clif Bar Family Foundation, HEDCO Foundation, McKesson Foundation, Mount Zion Health Fund of the Jewish Community Fund, Quest Diagnostics Foundation, and Safeway Foundation.
CLINIC BY THE BAY
4877 MISSION STREET SAN FRANCISCO, CA 94112 (415) 405-0222
Please visit our website at http://www.clinicbythebay.org/
Friday, March 11, 2011
You are cordially invited to an interactive discussion hosted by Alliance for Affordable Services
Yesterday I met with Labor Secretary Marty Morgenstern to discuss how small business could work with his office.
He indicated that he is very interested in trying to reduce burdensome regulations and is looking for ideas. Small Business California has established a regulatory committee and will be looking into this but I welcome any ideas you may have.
For those of you in the Sacramento area please see invitation below to a meeting March 21 with Congressman Dan Lungren. As you know he is the author of HR 4 repealing the 1099 filing requirement. I hope some of you can attend.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Published by
The Alliance for Affordable Services
P.O. Box 612547
Dallas, TX 75261-2547
Special Guest
U.S. Representative
Daniel Lungren (CA-03)
You are Cordially Invited!
Please join us for an interactive discussion hosted by Alliance for Affordable Services, CAL Chamber, SBCAL, NFIB/California and other California business organizations and groups regarding H.R. 4 (the repeal of the 1099 reporting requirement expansion), the federal budget and other small business-affiliated issues. This is an exclusive opportunity to interact directly with Congressman Daniel Lungren.
Admission is complimentary.
When: Monday, March 21, 2011
Time 4:30 p.m. to 5:30 p.m.
Where: CalChamber
California Room
1215 K Street, Suite 1400
Sacramento, CA 95814
For information and to RSVP, please contact:
Dan Faraci
dfaraci@affordableservices.org
Director of Government Affairs
Business or Business Casual Attire Recommended
He indicated that he is very interested in trying to reduce burdensome regulations and is looking for ideas. Small Business California has established a regulatory committee and will be looking into this but I welcome any ideas you may have.
For those of you in the Sacramento area please see invitation below to a meeting March 21 with Congressman Dan Lungren. As you know he is the author of HR 4 repealing the 1099 filing requirement. I hope some of you can attend.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Published by
The Alliance for Affordable Services
P.O. Box 612547
Dallas, TX 75261-2547
Special Guest
U.S. Representative
Daniel Lungren (CA-03)
You are Cordially Invited!
Please join us for an interactive discussion hosted by Alliance for Affordable Services, CAL Chamber, SBCAL, NFIB/California and other California business organizations and groups regarding H.R. 4 (the repeal of the 1099 reporting requirement expansion), the federal budget and other small business-affiliated issues. This is an exclusive opportunity to interact directly with Congressman Daniel Lungren.
Admission is complimentary.
When: Monday, March 21, 2011
Time 4:30 p.m. to 5:30 p.m.
Where: CalChamber
California Room
1215 K Street, Suite 1400
Sacramento, CA 95814
For information and to RSVP, please contact:
Dan Faraci
dfaraci@affordableservices.org
Director of Government Affairs
Business or Business Casual Attire Recommended
Tuesday, March 08, 2011
HR 4 Update
Please see information on 1099 status.
Seems like we are getting closer but we will continue to push until signed by the President.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
From: Snyder, Alexandra [mailto:Alexandra.Snyder@mail.house.gov]
Sent: Tuesday, March 08, 2011 4:10 PM
To: Snyder, Alexandra
Subject: HR 4 Update
I was recently informed that the Senate will likely vote on H.R. 4 (to repeal the expanded 1099 mandate) this week! Debate may begin as early as tomorrow, with a final vote on Thursday. As expected, there are some issues with the offset. As the following article indicates, Senator Baucus may offer an offset that combines the offset in the Johanns bill (adopted in the Stabenow amendment to the FAA bill) and the one in H.R. 4. However, Majority Leader Reid is on record as supporting the House offset.
Thank you again for all of your hard work in getting the 1099 repeal to this stage. It should be an interesting week!
Alexandra
Alexandra Snyder
Legislative Counsel
Office of Congressman Dan Lungren
2313 Rayburn House Office Building
Washington DC 20515
O: 202.225.5716
F: 202.226.1298
BNA reporting...
Baucus to Propose Splitting Both House, Senate
Offsets for Form 1099 Repeal
Posted March 8, 2011, 2:17 P.M. ET
Senate Finance Committee Chairman Max Baucus (D-Mont.) said March 8 that
he intends to amend the House-passed bill (H.R. 4) to repeal new Form
1099 rules by paying for the bill with a combination of both the House
offset and a Senate offset that would rescind authorization for unspent
money.
The House bill was paid for with a provision that would modify
repayments of health care tax credit overpayments, while the Senate paid
for the bill by rescinding $44 billion of unspent earmarks.
The bill, which would relieve businesses of the requirement to file a
Form 1099 information report whenever their payments to a single
provider of a good reaches $600 in a single year, is expected to move to
the Senate floor by March 11, according to Senate Majority Leader Harry
Reid (D-Nev.). The bill would also repeal a new requirement for
landlords to report all payments of $600 or more for goods or services
provided for rental property.
The repeal would only apply to new Form 1099 requirements put in place
under the Patient Protection and Affordable Care Act of 2010 (Pub. L.
No. 110-148) and the Small Business Jobs Act of 2010 (Pub. L. No.
110-240).
Reid Backs House’s 1099 Repeal
By Brian Friel and Niels Lesniewski, CQ Staff
Senate Majority Leader Harry Reid said Tuesday he favors a House-passed measure that would repeal a controversial tax-reporting provision in last year’s health care overhaul.
The comments by Reid, D-Nev., increase chances that the Senate will approve the measure (HR 4) to eliminate the “1099” provision even though some Democrats oppose the House’s proposal to offset the $19 billion cost by reclaiming overpayments of advance tax credits to help low-income families buy health insurance. Some Democrats would prefer a Senate-approved offset that would rescind unobligated discretionary funds.
“Me personally, I like the House pay-for better than ours,” Reid said Tuesday, though he added that Democrats were still discussing how to proceed on the measure.
If the Senate accepts the bill as is, it would go to President Obama for his signature — and mark the most significant change yet to the landmark health care law (PL 111-148, PL 111-152).
Sen. Mike Johanns, R-Neb., said Tuesday that he expects Democrats and Republicans to agree to the House bill. He noted that the Senate unanimously backed using the same offset to cover the costs of an extension of Medicare physician payment rates in December. “Overwhelmingly, Senate Democrats and Republicans want to get this done,” Johanns said. “We can all claim victory, Republicans and Democrats.”
Supporters of the repeal say the tax reporting provision places an unfair burden on businesses and could undermine economic growth.
The provision requires businesses and real estate owners to report to the IRS any vendor receiving more than $600 a year. The reporting requirement is intended as a way to reduce tax fraud.
The House passed its version of the 1099 repeal March 3 on a 314-112 vote. Many Democrats opposed passage because of the measure’s budgetary offset, which they argued would scale back benefits included in the 2010 health care overhaul.
The Senate voted to repeal the 1099 reporting requirement in an amendment to the reauthorization (S 223) of Federal Aviation Administration programs, which the Senate passed Feb. 17.
The amendment, sponsored by Michigan Democrat Debbie Stabenow, offset the costs of the repeal by rescinding unobligated discretionary funds.
The repeal passed by voice vote after senators voted 81-17 to waive a budgetary point of order against it. Reid voted in opposition along with Democratic appropriators concerned about granting congressional prerogatives over spending to the Office of Management and Budget, which would be tasked with coming up with the source of the spending rescissions.
During debate on the amendment, the Senate rejected a proposal by Democratic Sens. Carl Levin of Michigan and Daniel K. Inouye of Hawaii to offset the cost of the repeal mostly with increased taxes on the oil and gas industry.
The 1099 repeal is in line behind two other matters. The Senate is moving toward completion of a patent system overhaul (S 23) by early Wednesday and is then slated to debate the rest of the fiscal year’s federal funding.
Seems like we are getting closer but we will continue to push until signed by the President.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
From: Snyder, Alexandra [mailto:Alexandra.Snyder@mail.house.gov]
Sent: Tuesday, March 08, 2011 4:10 PM
To: Snyder, Alexandra
Subject: HR 4 Update
I was recently informed that the Senate will likely vote on H.R. 4 (to repeal the expanded 1099 mandate) this week! Debate may begin as early as tomorrow, with a final vote on Thursday. As expected, there are some issues with the offset. As the following article indicates, Senator Baucus may offer an offset that combines the offset in the Johanns bill (adopted in the Stabenow amendment to the FAA bill) and the one in H.R. 4. However, Majority Leader Reid is on record as supporting the House offset.
Thank you again for all of your hard work in getting the 1099 repeal to this stage. It should be an interesting week!
Alexandra
Alexandra Snyder
Legislative Counsel
Office of Congressman Dan Lungren
2313 Rayburn House Office Building
Washington DC 20515
O: 202.225.5716
F: 202.226.1298
BNA reporting...
Baucus to Propose Splitting Both House, Senate
Offsets for Form 1099 Repeal
Posted March 8, 2011, 2:17 P.M. ET
Senate Finance Committee Chairman Max Baucus (D-Mont.) said March 8 that
he intends to amend the House-passed bill (H.R. 4) to repeal new Form
1099 rules by paying for the bill with a combination of both the House
offset and a Senate offset that would rescind authorization for unspent
money.
The House bill was paid for with a provision that would modify
repayments of health care tax credit overpayments, while the Senate paid
for the bill by rescinding $44 billion of unspent earmarks.
The bill, which would relieve businesses of the requirement to file a
Form 1099 information report whenever their payments to a single
provider of a good reaches $600 in a single year, is expected to move to
the Senate floor by March 11, according to Senate Majority Leader Harry
Reid (D-Nev.). The bill would also repeal a new requirement for
landlords to report all payments of $600 or more for goods or services
provided for rental property.
The repeal would only apply to new Form 1099 requirements put in place
under the Patient Protection and Affordable Care Act of 2010 (Pub. L.
No. 110-148) and the Small Business Jobs Act of 2010 (Pub. L. No.
110-240).
Reid Backs House’s 1099 Repeal
By Brian Friel and Niels Lesniewski, CQ Staff
Senate Majority Leader Harry Reid said Tuesday he favors a House-passed measure that would repeal a controversial tax-reporting provision in last year’s health care overhaul.
The comments by Reid, D-Nev., increase chances that the Senate will approve the measure (HR 4) to eliminate the “1099” provision even though some Democrats oppose the House’s proposal to offset the $19 billion cost by reclaiming overpayments of advance tax credits to help low-income families buy health insurance. Some Democrats would prefer a Senate-approved offset that would rescind unobligated discretionary funds.
“Me personally, I like the House pay-for better than ours,” Reid said Tuesday, though he added that Democrats were still discussing how to proceed on the measure.
If the Senate accepts the bill as is, it would go to President Obama for his signature — and mark the most significant change yet to the landmark health care law (PL 111-148, PL 111-152).
Sen. Mike Johanns, R-Neb., said Tuesday that he expects Democrats and Republicans to agree to the House bill. He noted that the Senate unanimously backed using the same offset to cover the costs of an extension of Medicare physician payment rates in December. “Overwhelmingly, Senate Democrats and Republicans want to get this done,” Johanns said. “We can all claim victory, Republicans and Democrats.”
Supporters of the repeal say the tax reporting provision places an unfair burden on businesses and could undermine economic growth.
The provision requires businesses and real estate owners to report to the IRS any vendor receiving more than $600 a year. The reporting requirement is intended as a way to reduce tax fraud.
The House passed its version of the 1099 repeal March 3 on a 314-112 vote. Many Democrats opposed passage because of the measure’s budgetary offset, which they argued would scale back benefits included in the 2010 health care overhaul.
The Senate voted to repeal the 1099 reporting requirement in an amendment to the reauthorization (S 223) of Federal Aviation Administration programs, which the Senate passed Feb. 17.
The amendment, sponsored by Michigan Democrat Debbie Stabenow, offset the costs of the repeal by rescinding unobligated discretionary funds.
The repeal passed by voice vote after senators voted 81-17 to waive a budgetary point of order against it. Reid voted in opposition along with Democratic appropriators concerned about granting congressional prerogatives over spending to the Office of Management and Budget, which would be tasked with coming up with the source of the spending rescissions.
During debate on the amendment, the Senate rejected a proposal by Democratic Sens. Carl Levin of Michigan and Daniel K. Inouye of Hawaii to offset the cost of the repeal mostly with increased taxes on the oil and gas industry.
The 1099 repeal is in line behind two other matters. The Senate is moving toward completion of a patent system overhaul (S 23) by early Wednesday and is then slated to debate the rest of the fiscal year’s federal funding.
Monday, March 07, 2011
AB 153 Out of State Internet Tax
AB 153 is coming up before the Assembly Rev and Tax Committee today. This would have out of state internet sellers required to collect the sales tax as brick and mortar stores do now.
This is not a new tax as currently the buyer is required to report these purchases on their state income tax and pay the sales tax in their area. This is not only a fairness issue but will reduce paperwork for small businesses as they will no longer have to keep track of their purchases.
See below Op Ed piece SB Cal wrote in the San Jose Mercury.
Small Business California will be testifying in strong support.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Opinion: Tax policy should not put small business at a disadvantage
By Scott Hauge
Special to the Mercury News
Posted: 03/06/2011 08:00:00 PM PST
Updated: 03/06/2011 08:10:36 PM PST
As the president of Small Business California, I believe in the free market. I also believe that what makes the free market work is that everyone plays by the same rules.
Unfortunately, a tax loophole being exploited in our state hurts small businesses and creates a competitive disadvantage in the marketplace. Out-of-state, online-only vendors don't collect state sales taxes like brick-and-mortar stores are required to do. This loophole has given out-of-state, online-only retailers an unfair competitive advantage over retailers in our own community.
As a result, the brick-and-mortar small businesses that employ our family members, participate in our communities and are critical to our economy's recovery are operating at a loss, and jobs are at risk.
At its core, this is an issue of basic fairness. California businesses are being priced out of the marketplace because they are following the law and collecting the sales tax as required by law. All the while, online-only retail giants like Amazon.com are refusing to collect the sales tax by exploiting a loophole and passing on the liability to remit the sales tax to their consumers, many of whom have no idea the compliance burden falls on them to track and issue payment.
The result has meant that online-only retailers abusing an outdated system to get around collecting the sales tax can offer an artificially lower price. That's not fair, not right and not the way the marketplace should work. It is no way to do business in a 21st century economy.
Fortunately, our state has an opportunity to close the loophole, modernize the system and ensure small businesses are able to compete. Lawmakers can support Assembly Bill 153 by Assemblywoman Nancy Skinner that will require out-of-state, online-only retailers to comply with the same requirements to collect sales taxes that California businesses must follow.
This will ensure the fair and equitable collection of sales taxes by every business, and in the process, provide a critical infusion of revenue for our state and local communities that are struggling to close deficits without raising taxes.
A recent study by the University of Tennessee estimated that this loophole led to more than $3.5 billion in uncollected state and local revenues in 2011-12. By enforcing the existing tax equally on all businesses, government can raise more revenue without raising taxes.
It's time our elected officials stand up for California employers. It's time we all play by the same rules. A sale is a sale is a sale whether it is made online or at the store. Establishing a common set of rules will benefit everyone -- the retailers, consumers, economy and state.
Especially during this recession, we need to be helping, not hurting, California small businesses. The state Legislature now has the chance to help. Let's have one set of rules that applies to everyone, regardless of whether the sale is made over the Internet or on Main Street.
SCOTT HAUGE is president of Small Business California. He wrote this article for this newspaper.
This is not a new tax as currently the buyer is required to report these purchases on their state income tax and pay the sales tax in their area. This is not only a fairness issue but will reduce paperwork for small businesses as they will no longer have to keep track of their purchases.
See below Op Ed piece SB Cal wrote in the San Jose Mercury.
Small Business California will be testifying in strong support.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Opinion: Tax policy should not put small business at a disadvantage
By Scott Hauge
Special to the Mercury News
Posted: 03/06/2011 08:00:00 PM PST
Updated: 03/06/2011 08:10:36 PM PST
As the president of Small Business California, I believe in the free market. I also believe that what makes the free market work is that everyone plays by the same rules.
Unfortunately, a tax loophole being exploited in our state hurts small businesses and creates a competitive disadvantage in the marketplace. Out-of-state, online-only vendors don't collect state sales taxes like brick-and-mortar stores are required to do. This loophole has given out-of-state, online-only retailers an unfair competitive advantage over retailers in our own community.
As a result, the brick-and-mortar small businesses that employ our family members, participate in our communities and are critical to our economy's recovery are operating at a loss, and jobs are at risk.
At its core, this is an issue of basic fairness. California businesses are being priced out of the marketplace because they are following the law and collecting the sales tax as required by law. All the while, online-only retail giants like Amazon.com are refusing to collect the sales tax by exploiting a loophole and passing on the liability to remit the sales tax to their consumers, many of whom have no idea the compliance burden falls on them to track and issue payment.
The result has meant that online-only retailers abusing an outdated system to get around collecting the sales tax can offer an artificially lower price. That's not fair, not right and not the way the marketplace should work. It is no way to do business in a 21st century economy.
Fortunately, our state has an opportunity to close the loophole, modernize the system and ensure small businesses are able to compete. Lawmakers can support Assembly Bill 153 by Assemblywoman Nancy Skinner that will require out-of-state, online-only retailers to comply with the same requirements to collect sales taxes that California businesses must follow.
This will ensure the fair and equitable collection of sales taxes by every business, and in the process, provide a critical infusion of revenue for our state and local communities that are struggling to close deficits without raising taxes.
A recent study by the University of Tennessee estimated that this loophole led to more than $3.5 billion in uncollected state and local revenues in 2011-12. By enforcing the existing tax equally on all businesses, government can raise more revenue without raising taxes.
It's time our elected officials stand up for California employers. It's time we all play by the same rules. A sale is a sale is a sale whether it is made online or at the store. Establishing a common set of rules will benefit everyone -- the retailers, consumers, economy and state.
Especially during this recession, we need to be helping, not hurting, California small businesses. The state Legislature now has the chance to help. Let's have one set of rules that applies to everyone, regardless of whether the sale is made over the Internet or on Main Street.
SCOTT HAUGE is president of Small Business California. He wrote this article for this newspaper.
Thursday, March 03, 2011
1099s/ Workers Compensation
This week the House will vote on HR 4 which would eliminate the requirement that 1099s be filed on transactions of $600 or more. It is expected that this will pass the House but will fail in the Senate because of how HR 4 pays for the lost revenue.
I told you previously that the Senate passed a similar bill but paid for it by using authorized expenditures in the budget. It did not say exactly what those expenditures were.
Small Business California supports HR4. We also support the Senate bill. At the end of the day we are sick and tired of politics and don’t care how it is paid for. Just do it.
See below Administrative Policy
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
March 1, 2011
(House)
STATEMENT OF ADMINISTRATION POLICY
H.R. 4 – Comprehensive 1099 Taxpayer Protection and
Repayment of Exchange Subsidy Overpayments Act of 2011
(Rep. Lungren, R-California, and 273 cosponsors)
The Administration strongly supports efforts to repeal the provision in the Affordable Care Act that established information reporting requirements for tax purposes that place an unnecessary bookkeeping burden on small businesses. The Administration is committed to reducing the gap between taxes legally owed and taxes paid, but believes that the burden created on businesses by the new information reporting requirement on purchases of goods that exceed $600, as included in Section 6041 of the Internal Revenue Code as modified by Section 9006 of the Affordable Care Act, is too great.
However, the Administration has serious concerns about the approach the Congress has taken to paying for the repeal. The Administration strongly opposes the House’s offset to pay for this repeal in H.R. 4, which would undo an improvement enacted with nearly unanimous support in the Medicare and Medicaid Extenders Act that eliminated an egregious “cliff” in the tax system affecting middle income taxpayers. Specifically, H.R. 4 would result in tax increases on certain middle-class families that incur unexpected tax liabilities, in many cases totaling thousands of dollars, notwithstanding that they followed the rules. The Administration also notes that a provision repealing the same information reporting requirements in the FAA Air Transportation Modernization and Safety Improvement Act would pay for the repeal with an unspecified rescission of $44 billion that, in combination with other proposals currently under consideration in Congress, could cause serious disruption in a wide range of services provided by the Federal government.
The Administration looks forward to continuing to work with the Congress on the repeal of the information reporting requirements in the course of the legislative process, including finding an acceptable offset for the cost of the repeal.
Tuesday I spoke at a Department of Workers Compensation conference about the trends in Workers Compensation. A Workers Compensation Rating Board representative was there and gave two pieces of interesting information. The preliminary projections of combined loss ratio for 2010 is 127%.
The increase in premiums for 2010 was just over 2%. Clearly there is pressure to increase rates but it is not clear if the will happen in July or January 2012.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I told you previously that the Senate passed a similar bill but paid for it by using authorized expenditures in the budget. It did not say exactly what those expenditures were.
Small Business California supports HR4. We also support the Senate bill. At the end of the day we are sick and tired of politics and don’t care how it is paid for. Just do it.
See below Administrative Policy
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
March 1, 2011
(House)
STATEMENT OF ADMINISTRATION POLICY
H.R. 4 – Comprehensive 1099 Taxpayer Protection and
Repayment of Exchange Subsidy Overpayments Act of 2011
(Rep. Lungren, R-California, and 273 cosponsors)
The Administration strongly supports efforts to repeal the provision in the Affordable Care Act that established information reporting requirements for tax purposes that place an unnecessary bookkeeping burden on small businesses. The Administration is committed to reducing the gap between taxes legally owed and taxes paid, but believes that the burden created on businesses by the new information reporting requirement on purchases of goods that exceed $600, as included in Section 6041 of the Internal Revenue Code as modified by Section 9006 of the Affordable Care Act, is too great.
However, the Administration has serious concerns about the approach the Congress has taken to paying for the repeal. The Administration strongly opposes the House’s offset to pay for this repeal in H.R. 4, which would undo an improvement enacted with nearly unanimous support in the Medicare and Medicaid Extenders Act that eliminated an egregious “cliff” in the tax system affecting middle income taxpayers. Specifically, H.R. 4 would result in tax increases on certain middle-class families that incur unexpected tax liabilities, in many cases totaling thousands of dollars, notwithstanding that they followed the rules. The Administration also notes that a provision repealing the same information reporting requirements in the FAA Air Transportation Modernization and Safety Improvement Act would pay for the repeal with an unspecified rescission of $44 billion that, in combination with other proposals currently under consideration in Congress, could cause serious disruption in a wide range of services provided by the Federal government.
The Administration looks forward to continuing to work with the Congress on the repeal of the information reporting requirements in the course of the legislative process, including finding an acceptable offset for the cost of the repeal.
Tuesday I spoke at a Department of Workers Compensation conference about the trends in Workers Compensation. A Workers Compensation Rating Board representative was there and gave two pieces of interesting information. The preliminary projections of combined loss ratio for 2010 is 127%.
The increase in premiums for 2010 was just over 2%. Clearly there is pressure to increase rates but it is not clear if the will happen in July or January 2012.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
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