Friday, July 01, 2011

Please see below changes in IRS Gas Mileage Rate and Sales Tax rates effective July 1. Thanks to our member Burr Pilger and Mayer for sending this.

The year is half over. Small Business California has been active this year in Sacramento and Washington. We have become a go to organization in Sacramento for legislators looking to pass legislation that helps small business.

Our lobbyist Lori Kammerer has testified on dozens of bills and usually is the only representative from the small business community.

We are sponsoring two bills [Buy California and Claims Administrator Reporting of Workers Compensation claims] and have gotten amendments on numerous bills. We also have been a major force in having out of state Internet companies collect sales tax on purchases.

Hank Ryan has continued to expand On Bill Financing in California and is working to expand small business use of energy efficiency vehicles. He frequently gives comments to the CPUC and over the last 6 months SB Cal has met with two CPUC Commissioners and many staff members.

In Washington we were a player in repeal of the 1099 requirement and getting a continuing resolution for the Small Business Innovative Research program.

We continue to be a resource for the media around the country. We provide comments regarding small business positions but more importantly we give them small business owners they can talk to. In the last couple of days our members have talked to the LA Times, SF Chronicle and the Sacramento Business Journal.

If you haven’t joined Small Business California I hope you will consider doing so. The cost is $150 for businesses with less than $1 million receipts and $300 for those $1 million or more.

You can join on line by going to:

Have a great 4th of July weekend!

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

Beginning July 1, 2011, Two Changes Set to Take Place

IRS Increases Mileage Rate to 55.5 Cents Per Mile

Due to recent increases in the price of fuel, the IRS has revised the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated.

The revised standard mileage rates are:

• 55.5 cents per mile for business use of an automobile.
• 23.5 cents for use of an automobile as a medical or moving expense.
• For automobile use as a charitable contribution, the mileage rate is fixed by statute and will remain at 14 cents.

These revised rates will become effective for mileage allowances that are paid both (1) to an employee on or after July 1, 2011, and (2) for transportation expenses an employee pays or incurs on or after July 1, 2011.

State Reduces Sales Tax Beginning July 1, 2011

Sales tax rates in the State of California will be reduced on July 1, 2011, by 1% due to the expiration of the temporary extension put in place by then Governor Schwarzenegger. The new effective rate for San Francisco will be 8.5%. In Oakland, the new rate will be 8.75%.

For other jurisdictions, see the pdf published by the State Board of Equalization:

If you have further questions, please contact your BPM advisor or email us at

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