Friday, May 20, 2011

UPDATE: The Board of Equalization Plans for Brown Tax Extensions to Fail

This made us smile. According to the Sacramento Bee, the state Board of Equalization is expecting to send emails to over half a million California retailers, notifying them to plan for the state's sales and use tax rates to drop 1% if Sacramento can't get its tax extensions through before July 1.

The Board of Equalization is a state-level bureaucracy whose function is every bit as Marxist as its name: collecting sales and use taxes for the government. As such, they're in charge of ensuring that retailers are compliant with current tax rules. According to Chairman Jerome Horton, "Unless the Legislature extends the tax rate increase before July 1, 2011, California retailers should adjust their calculation of sales tax. That failure to adjust their computers and registers for the reduced rate, will result in excess taxes being collected from California consumers." This would mean that California's sales tax would drop from 8.25% to 7.25%, a small blessing for the state's inflation- and recession-plagued consumers.

Of course, if you're trying to read tea leaves, you might wonder how this fits into the Legislature's casual approach to resolving its budget crisis. Clearly some in Sacramento are starting to plan for the state to enter the next fiscal year without a budget.

0 comments:

Post a Comment