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Business News

Local sales tax allocations reduced in many areas of the state

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Written by: Editor
Published: 27 August 2010

SACRAMENTO – The California State Board of Equalization announced this week that August sales tax allocations to local government entities will not reflect the 5.7 percent increase previously estimated by the Department of Finance.


The allocations to 99 local jurisdictions will be reduced by an additional 5.4 percent. Twenty one jurisdictions will receive no warrants.


A review of statewide cash receipts for all of the second quarter of 2010 disclosed an overall decline in sales and use tax collections of approximately 10.4 percent.


Additionally, cash receipts for the first quarter of 2010 remained flat compared to a year earlier.


The BOE takes this action to avoid over-advancing sales and use tax dollars to a point that would impact future payments to local jurisdictions.


Of the 21 jurisdictions receiving no warrant in August, nine were due to the economic downturn, while 12 were due to other, unrelated issues.


BOE makes monthly allocations to 764 local jurisdictions based on a formula that includes historical allocations, growth factor adjustments to the base, transfers and audits and actual cash receipts.


Beginning in the fourth quarter of 2008, the BOE reduced advance payments to local taxing jurisdictions beyond adjustments based on the negative growth factors projected at the time by Department of Finance due to an unprecedented drop in taxable sales.


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. It 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 taxes and fees in California, visit www.taxes.ca.gov.

State fire marshal issues mandate to gas station owners

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Written by: Editor
Published: 25 August 2010

SACRAMENTO – The California Office of the State Fire Marshal (OSFM) announced that it is mandating the removal of hold open latches on all Vapor System Technologies (VST) nozzles in approximately 3,000 gas stations statewide.


The action taken will ensure public safety and allow the gasoline stations equipped with VST nozzles to continue operating.


Some VST nozzles have allowed gasoline to be unexpectedly sprayed before the nozzle is inserted in the vehicle’s’ gas tank.


To date, 13 spraying incidents have been reported and confirmed by the California Air Resources Board (ARB). Seven of these incidents resulted in consumers being sprayed with gasoline.


In order to avoid the possibility of being sprayed with gas, it’s very important for customers fueling with a VST nozzle take the following steps:


  • Insert the nozzle into the gas tank before selecting the grade of gasoline;

  • Do not insert any type of foreign object (gas cap, water bottle, etc) in the handle to keep the gas flowing;

  • If you encounter a VST nozzle with the hold-open latch still in place, do not use it.


Station owners or operators are obligated to remove the hold open latches by Oct. 15 in order to remain in operation.


ARB is currently working with VST and other manufacturers on replacement nozzles. When these replacement nozzles become available, they will provide the station owners the option of replacing their current VST nozzles with a nozzle that provides hold-open latches for their customers.

Brown seeks $34 million from TV tax lady

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Written by: Editor
Published: 23 August 2010

SACRAMENTO – Attorney General Edmund G. Brown Jr. on Monday filed a $34 million lawsuit against television's “tax lady” Roni Deutch for allegedly hurting – not helping – thousands of people facing serious and expensive tax collection problems with the IRS.


“Tax Lady Roni Deutch is engaged in a heartless scheme that swindled people with tax problems,” Brown said. “She promises to significantly reduce their IRS tax debts, but instead preys on their vulnerability, taking large up-front payments but providing little or no help in lowering their tax bills.”


A call to Deutch's in-house counsel was not returned Monday.


Brown accused Deutch of manufacturing credibility by boasting that her tax resolution law firm, which has annual revenues of at least $25 million, is the largest of its kind in the nation. She spends $3 million a year on advertising, much of it on late-night cable TV, and frequently offers tax advice on NBC's Today Show, CNN and CNBC.


Desperate debtors turn to Deutch based on her misleading ads that feature fictional testimonials claiming she secured large reductions in the featured clients' federal tax debts, Brown's office said.


He cited her ad entitled “It's Your Turn,” which features three clients whom Deutch claims to have "saved" from having to pay thousands of dollars to the IRS. In fact, those clients still owe the IRS the full amount of their taxes, plus interest and penalties.


When potential clients call Deutch's boiler room, sales agents employ high-pressure sales tactics plus a series of misrepresentations and false promises to persuade them to retain her firm. The sales agents claim Deutch's success rate in dealing with the IRS is as high as 99 percent. But the percentage of clients whose tax bills Deutch actually reduces is a mere 10 percent.


Rather than cut clients' debts, Deutch often escalates them. She places clients in an endless loop of requests for duplicate documents that increases her fees and, due to further delays in payments to the IRS, increases clients' IRS fines and penalties.


One woman from Pico Rivera, who owed the IRS $13,000, turned to Deutch after seeing a TV ad. She paid Deutch a $1,900 retainer, but by the time the Deutch firm ended its representation, she owed the IRS hundreds of dollars more in interest and penalties, and the IRS had placed a levy against her Social Security benefits.


Despite failing to take any effective action on her behalf, Deutch refused to refund the woman's retainer by falsely billing her for time the firm did not spend on her case. Deutch regularly uses false billing statements to deny her clients' refund requests.


Hundreds of clients have filed complaints with the attorney general and other government agencies, describing Deutch's failure to reduce their IRS debts as she advertised and her refusal to refund retainers of as much as $4,700.


Brown's lawsuit says thousands of consumers in California and around the country have fallen victim to Deutch's unlawful scam, losing millions of dollars that could have been used to pay their IRS tax liabilities. The lawsuit charges that Deutch operates a deceptive tax resolution scheme that employs “a bevy of false promises and misrepresentations.”


Brown's action seeks to permanently prevent Deutch from engaging in such unfair business practices and false advertising, and force her to pay victims restitution of at least $33.9 million plus civil penalties.

PG&E sponsors new energy assistance program for customers in need

Details
Written by: Editor
Published: 22 August 2010

SAN FRANCISCO – Pacific Gas and Electric Company (PG&E) has announced a new energy assistance program designed to help families in need.


The initiative, known as Temporary Energy Assistance for Families (TEAF), is a one-time payment program sponsored by PG&E and administered by The Salvation Army.


This program, authorized by the California Public Utilities Commission (CPUC) and funded through the American Recovery and Reinvestment Act (ARRA), along with PG&E customers, will provide up to $1,500 to income-qualified families who are unable to pay for their energy needs due to an unplanned hardship.


“We know that in today’s difficult economic times, some of our customers may need extra help with their bills,” said Albert F. Torres, vice president of customer operations at PG&E. “We believe this new program provides the perfect opportunity to give our customers additional support during their time of need.”


Customers interested in the program are encouraged to contact The Salvation Army for program details and eligibility guidelines, or they can apply at 1-800-933-9677. They can also visit www.pge.com/TEAF.


Applications for assistance will be accepted until Sept. 21.


In addition to the TEAF program, PG&E offers a host of other programs to assist customers.


PG&E's Breathe Easy Solutions help customers manage their energy costs when life brings financial challenges or unexpected changes.


Additional details, as well as eligibility requirements and enrollment instructions, can be found at: http://www.pge.com/myhome/customerservice/financialassistance/.

  1. Foundation plans annual Rice Field Day Aug. 25
  2. Blue Wing announces full bar, sushi Thursdays and barbecue weekends
  3. Mountain High Coffee & Books opens new Hidden Valley Lake location
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