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Lumber tax a knot for retailers (Sneaky New CA Tax)
San Jose Mercury News ^ | 1/11/13 | Heather Somerville

Posted on 01/13/2013 9:52:14 AM PST by ProtectOurFreedom

California's new 1% lumber tax has cost lumber yards thousands of dollars...raising the ire of retailers struggling to bounce back from the housing slump.

...the new law because it is full of contradictions, hidden costs and ambiguities. The tax applies to lumber and products that are at least 10% wood, although the rules are murky and lumber yards have varied interpretations of what should be taxed. The list of exclusions and caveats is numerous. Doors and moldings are not taxed, but wood shingles are. Fencing is taxed, unless the fence is made from remanufactured wood. Firewood is not taxed, although all sizes and types of lumber are.

The state passed the bill last year in a last-minute rush that allowed for little public comment; with a two-thirds majority to pass the law, there was no need to put it to voters, and most customers and contractors didn't know about the tax until Jan. 1.

...some store owners are making their own rules. Brian Ettlin, GM of Economy Lumber, is asking other stores for advice. Ettlin isn't getting much help from the Board of Equalization. "It's hugely unorganized," said George Runner, board member representing District 2. "...we know what is being taxed."

The tax affects 200,000 contractors and stores. The tax comes on top of the quarter-percent sales tax increase voters approved with Proposition 30

...retailers have to spend an average of $4,500 to upgrade their computers -- Executive Director Ken Dunham heard of one business spending $40,000. The state will reimburse retailers $250 for the upgrades, an offer stores have scoffed at. The Board of Equalization has requested $995,000 from the state to cover the cost of collecting the tax and wants to hire four new employees.

(Excerpt) Read more at mercurynews.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: california; democrats; lumber; tax
ANOTHER sneaky new California tax, passed under cover of darkness at the end of 2012, without time for any public input that goes right after the flat-on-its-back housing and construction industries. The tax imposes huge costs on retailers to change their computer systems -- running into thousands of dollars -- and no time to reprogram the retail POS systems. Worse, the tax is thoroughly confusing regarding WHAT is to be taxed and nobody can figure it out.

This is a prime example of government at its WORST.

I am hopeful that messes such as this will be fixed because we now have Democrat control of all three branches of government: the Assembly, Senate AND the Governorship. (psst...snark)

1 posted on 01/13/2013 9:52:20 AM PST by ProtectOurFreedom
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To: ProtectOurFreedom

Taxing the life out of the workers one law at a time. I’d leave that Death Spiral in a heartbeat if I lived there.


2 posted on 01/13/2013 9:56:38 AM PST by BipolarBob (Happy Hunger Games! May the odds be ever in your favor.)
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To: ProtectOurFreedom
the Board of Equalization, somewhere Ayn Rand is laughing...
3 posted on 01/13/2013 10:04:43 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: ProtectOurFreedom

Call the board of equalization three times, ask the same question, get three different and contradictory answers. That’s been my experience with them, especially in dealing with special taxes such as this lumber one. Worse, the retailers will have to search for the rare forms that apply to the special taxes which are not to be entered on the standard sales tax report.

For a family hardware store that has a little lumber for projects, this is a nightmare of a tax. I hope, whatever they do, they do not ever tell the state that they simply included the taxes in the price of the lumber.


4 posted on 01/13/2013 10:19:38 AM PST by kingu (Everything starts with slashing the size and scope of the federal government.)
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To: Chode
atlas shrugged Pictures, Images and Photos ElLayFriscoCalifornica would be merely pathetic, and not malignant, if they--Feinswine & Co.--weren't so determined to impose their socialist paradise on the rest of the country. Most thinking people look at recent firearm sales and CA U-Haul exit rentals and draw certain conclusions, but not the left's inner party.
5 posted on 01/13/2013 10:23:23 AM PST by tumblindice (America's founding fathers: All armed conservatives.)
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To: ProtectOurFreedom

You Californians should switch to plastic toothpicks, and buy plastic pens instead of wooden pencils.....


6 posted on 01/13/2013 10:26:17 AM PST by LegendHasIt
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To: tumblindice
100%
7 posted on 01/13/2013 10:28:54 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: ProtectOurFreedom

“The Board of Equalization”.. Sounds so Orwellian because it is. Govt is now officially tyrranical.


8 posted on 01/13/2013 10:30:38 AM PST by tflabo (Truth or Tyranny)
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To: ProtectOurFreedom

LOL!
Get out of that toilet. Do it now.
Run, don’t walk.

Don’t be “the last white farmer in Zimbabwe”.


9 posted on 01/13/2013 10:34:40 AM PST by Lancey Howard
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To: Lancey Howard

Our careers are here and it’s not that easy to change at age 61...but we are definitely counting the days!

The REAL killer to our retirement is Obastard and commiecrats. We just lost a good chunk of our retirement with all the tax law changes the bastards just enacted (we still have an appreciated California house in Silicon Valley). It’s going to make our retirement MUCH MUCH harder now. And I’m afraid they aren’t done transferring our wealth to the Obama Boys.


10 posted on 01/13/2013 10:49:55 AM PST by ProtectOurFreedom
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To: Chode
That does sound like it's right out of the opening chapters to Atlas Shrugged
11 posted on 01/13/2013 11:02:48 AM PST by YankeeReb
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To: YankeeReb
100%
12 posted on 01/13/2013 11:30:36 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: ProtectOurFreedom
I’m afraid they aren’t done transferring our wealth to the Obama Boys.

Not by a long shot. It is what they exist to do, their sole mission.

13 posted on 01/13/2013 11:37:55 AM PST by Lancey Howard
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To: ProtectOurFreedom
“And I’m afraid they aren’t done transferring our wealth to the Obama Boys”

You hit the nail on the head.

The policy that Obama has espoused since the 2008 campaign is that those who have wealth, whether earned by hard work and frugal living or by inheritance or by luck, must transfer that wealth to him and his elitist corps of socialist intellectuals who will distribute it to those they deem worthy of public largess. It is all a big scam since those judged worthy are those who support him and his political ambitions (Unions (GM), greenies (solyandra), entitlement dependents, etc.). This is AKA “sticking it to the man!” except that the “man” is now anyone who has something of value that can be confiscated by the state.

14 posted on 01/13/2013 12:00:28 PM PST by RedEyeJack
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To: ProtectOurFreedom

Kalipornia is never going to “come back”


15 posted on 01/13/2013 12:17:33 PM PST by GeronL (http://asspos.blogspot.com)
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To: ProtectOurFreedom

Right before the New Year the Board of Equalization sent out notices to contractors that they now have to collect this tax if they use wood in their projects.
We got the notice because we used to do roofing.
Luckily we no longer do roofing but I guess they are sending the notice to all contractors even if you no longer fall in their specified category.
It was quiet a shock to see this new “assessment”.
Especially after being hit with the new Fire Tax.


16 posted on 01/13/2013 12:30:06 PM PST by freds6girlies (many that are first shall be last; and the last shall be first. Mt. 19:30. R.I.P. G & J)
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To: ProtectOurFreedom

They have to sell 100 million dollars worth of lumber each year JUST to pay for the extra government cost of implementing the tax.


17 posted on 01/13/2013 1:01:48 PM PST by CharlesWayneCT
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To: Chode

Coincidental you mention her.. I was finally able to see Part 1 of “Atlas Shrugged”.
Can’t wait to see Part 2...


18 posted on 01/13/2013 3:37:18 PM PST by Bikkuri (Hope for Conservative push in the next 2-4 years..........)
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To: Chode

Oops.. forgot to mention I saw it (Part 1) only about 3 hours ago..


19 posted on 01/13/2013 3:38:37 PM PST by Bikkuri (Hope for Conservative push in the next 2-4 years..........)
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To: Bikkuri
yup, one was well done, two has different characters and i hope thy do as well
20 posted on 01/13/2013 4:01:54 PM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: Chode

Any idea when Part 2 will be on DvD or BR?
Pretty much only 1 way to see it on this side of the pond :p


21 posted on 01/13/2013 6:45:24 PM PST by Bikkuri (Hope for Conservative push in the next 2-4 years..........)
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To: ProtectOurFreedom
I am firmly convinced that if any government agency decided that they needed to create a law on how to boil water on the stove they would be unable to keep said law under 100 pages in length.
It would probably need detail exactly the type of pan to use and variations of pan usage depending on the stove, gas (Natural Gas or Propane), electric (Direct of Inductive) and lets not forget about the solar method to keep the tree huggers happy.
The law would have to include the proper degree that the water would need to obtain to meet the government definition of boiling, it would have to include elevation, specific gravity, and most likely other details that only a government agency could deem important.
The law would also to detail the amount of taxes to charge to offset the climate change damage done by boiling the water. This would include the proper amount of taxes depending on the power source utilized and the green house tax needed to offset the release of the water vapor from the boiling water as water vapor does more damage to the environment than carbon dioxide.
And lastly the law would have to detail the vast amount of regulations pertaining to safety, proper disposal and clean up methods.

Common persons method:
1. Put desired amount of water in a pan.
2. Put pan on stove top and turn on the burner.
3. Do not watch pan as this will prevent water from boiling.
4. Water is bolling when a large amount of bubbles rising to the surface. This is what people refer to as a "rolling boil."
5. Use the now boiling water for what it was being boiled for.

I was going to use a /SARC tag but with all of the laws and regulations being forced upon us today, I am sure some politician is working on this.

22 posted on 01/13/2013 7:20:21 PM PST by SledgeCS (Democrat/Liberal/Progressive/Socialist = Gun Control Nazi)
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To: Bikkuri
Products and offers that match your query. Google is compensated by these merchants. Payment is one of several factors used to rank these results.

23 posted on 01/13/2013 7:21:39 PM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: Chode

Sadly, I have no credit/debit card (actually I prefer not to have them), so my ability is limited to online or a local store/dvd rental.. I don’t think it will show up in a theater nor a dvd rental here... :p

Thank you for the effort though :)


24 posted on 01/13/2013 7:29:35 PM PST by Bikkuri (Hope for Conservative push in the next 2-4 years..........)
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To: Bikkuri
one of the sellers is Walmart and Barnes and Nobel is another... release date is 2/19/13

do wither of them have outlets in Japan?

25 posted on 01/13/2013 7:37:15 PM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: freds6girlies

Are wood shingles still sold in California?


26 posted on 01/13/2013 7:39:44 PM PST by ThomasThomas
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To: Chode

Sadly no. There is a possibility that Costco may have it... but I highly doubt it, they carry very little in the book/dvd dept.... and what they do have is usually toddler ‘toons.


27 posted on 01/13/2013 8:08:07 PM PST by Bikkuri (Hope for Conservative push in the next 2-4 years..........)
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To: ThomasThomas

They are. Mostly for house siding or decorative purposes. Not for roofing so much any more. Especially in fire prone areas they discourage wood roofing. At least in N. Cal.


28 posted on 01/13/2013 10:57:00 PM PST by freds6girlies (many that are first shall be last; and the last shall be first. Mt. 19:30. R.I.P. G & J)
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To: ProtectOurFreedom
The tax applies to lumber and products that are at least 10% wood,

Hmmmm... Undigestible cellulose. AKA "fiber".

Does the tax include paper, too?

Lots of possible "unintended consequences" there.

29 posted on 01/13/2013 11:00:23 PM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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