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CA – Small businesses don’t have to pay over sales tax?? INFURIATING!!!

Posted by salestax on March 19, 2009

Perhaps this is why California is in the dire straits that it is.  Supposedly, there is a CA gov’t initiative to ease business pressures of remitting sales taxes collected on a timely basis?  I don’t care what the economy is doing.  If you collect sales tax from me, you better damn remit it.  What if you were a small business owner in Oregon?  And you didn’t have that money sitting in your account… who would you rob to pay your bills then?  

So, they’re taking in customer’s money as an agent/trustee of the state when customers purchase goods.  Their simple responsibility is to collect that money, keep it, earn interest on it and then remit it to the state on a regular basis (Monthly, Quarterly, etc.).  But, instead, small business owners are choosing to pay business expenses rather than turn over OTHER PEOPLE’S MONEY to the state of California?  Excuse me…isn’t that, um, called stealing? 

1.       As a consumer, I’d rather you just not charge me sales tax from the start.  I’d like to invest that extra money for my family, my healthcare, my potential unemployment, my bills.  I’ve given you this money to give to the state, so that it might be able to indirectly help me or you in these crunching times.  If you just don’t charge me, then you just risk being audited and can pay it when that time comes.  Right… it’ll be in the future, which is when you want to pay it anyway.  UGH!!!

2.       Funny how Ms. Yee doesn’t mention the 50% penalties that CA imposes on delinquently remitted taxes.  So, ABC business owner keeps $1000 now, but has to pay over $1500 later?  Really, and they think this is smart?  Put it on a credit card with a cash rebate.  The rebate less the interest rate wouldn’t be this high.  And, while I’m on this rant… where is the Fed. Gov’t to step in and control these exorbitant penalties?  They stepped in when the cc companies were outrageously charging 30%+ interest rates, but it’s OK for states governments to do it?

3.       As a business owner, how dare these businesses try to get a competitive advantage over me by stealing other people’s money and using it to pay their bills.  The bar owner in this article should be infuriated, knowing that his neighbor down the street is holding onto someone else’s money to pay their bills and he isn’t. 

Give me a break California.  One of the highest cost of living states in the nation (ranked 49th only behind DC and HI) , one of the biggest economies in the world (7th-10th DOY), relatively high per capita wages  and you just allow businesses to collect sales taxes now and pay later? 

And, Ms. Yee has the gull to say that complainers should know about the $1.3B lost in out-of-state sales into California because residents don’t pay over the use taxes?  Hey, Ms. Yee, give me a call, I have some great ideas how to get that use tax collected economically, out-of-state vendors to collect CA taxes or just close that gap altogether.

All I have to say is, “un-friggin-believable.”


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