Sunday, August 21, 2011

Generating revenue in CA: Collecting use tax and fixing Prop. 13

Only 0.42 percent of personal income tax filers in California paid use tax on their 2009 out-of-state purchases, according to state Board of Equalization in a four-page review of use tax behavior in 2009. The report, mentioned in The Sacramento Bee on 8/19/2011, also mentioned that the state collected $10.4 million in use tax payments from personal-income tax returns in 2009. This means that the state could stand to gain much revenue if companies like Amazon.com were required to collect use taxes.

L.A. mayor Villaraigosa proposes to remove business property owners from some provisions of Prop. 13, which he says has become a 'corporate tax giveaway,' writes Anthony York of Los Angeles Times on 8/17/2011. Villaraigosa also suggests eliminating the corporate tax, lowering the income tax and expanding the sales tax to include services.

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