It is criminal that the State of California can keep money it illegally collects from its citizens. Anyone who in good faith pays what ends up being an illegal tax should get their money back. It’s as simple as that.

That’s why this legislative session, I am proud to be sponsoring legislation to extend common sense protections to taxpayers. Two identical measures, AB 2510 (Wagner) and SB 1327 (Knight), would require the state to provide a full refund to all individuals who paid a tax later declared unconstitutional.

Currently, taxpayers are only eligible to receive refunds if they have exhausted all their administrative appeals remedies, even if the tax they paid is later declared illegal. AB 2510 and SB 1327 would require the state to automatically issue refunds to taxpayers whose information is up to date. It would also open up an additional appeals period of one year after a state tax is declared unconstitutional, giving taxpayers a chance to… Read More

Delusions of grandeur drive the proponents of a downtown sports arena in Sacramento.

Sacramento Superior Court Judge Timothy Frawley ruled against two taxpayers groups in Sacramento, to place the proposed public subsidy for the new basketballarena before the city’s voters. Judge Frawley said the taxpayer groups made such significant errors in the wording of their petitions, the petitions, and 23,000 signatures supporting the effort, are not valid.

This is how The Sacramento Bee, which has been openly advocating for the arena subsidy, reported it: “The lawsuit, meanwhile, was funded by an agribusinessman who lives just outside the city limits and a group of nonunion electrical contractors angry that the arena is going to be built almost… Read More

On Tuesday, March 4 at 10:00 a.m. I will be partnering with the California Farm Bureau Foundation, to host a Telephone Townhall on tax issues specific to the agricultural industry.

Central Valley Senators Anthony Cannella and Andy Vidak will also join the call. Senator Cannella serves as the Vice Chairman of both the Senate Agriculture and Senate Natural Resources and Water Committees. In addition to his legislative duties, Senator Vidak is a farmer and rancher, growing cherries in Kings County and raising cattle in Tulare County.

Every day, farmers and ranchers face challenges with tax laws in the state of California. The laws can be complicated and, at times, confusing and taxpayers can face stiff penalties and interest if deadlines aren’t met and record keeping isn’t accurate.

Most taxpayers want to do the right thing but even the most savvy business owner can make mistakes. The tele-townhall will address such topics as sales and use tax, partial farming exemptions, and sales of feed and animals.

Better understanding of tax laws allows farmers, ranchers, and business owners selling to the agricultural industry to spend less time concerning… Read More

Today, I joined my fellow Board of Equalization members in a 5-0 vote to lower the gasoline excise tax 3.5 cents per gallon as of July 1, 2014.

Our vote today is good news for California taxpayers. This much-needed tax relief will arrive as Californians are on the road for summer vacations.

Lower gas taxes are good for our economy and good for jobs, but even with this cut Californians will continue to pay one of the highest gas taxes in the nation.

Unfortunately, some in the Legislature want you to pay more taxes, rather than less. Just last week a leading lawmaker proposed raising your gas tax by up to 43 cents per gallon.

Rather than plotting to raise taxes at a time when the state is already awash in cash, lawmakers should be finding ways to simplify our tax laws and make life easier for California taxpayers.

Lawmakers could start by scrapping the confusing and complicated gas tax formula they enacted in 2010 and replacing it with one that is simple, straightforward and easy to understand.… Read More

At our next meeting, the Board of Equalization will consider and vote on a staff proposal to reduce the gas tax by 3.5 cents per gallon for the 2014-15 fiscal year.

This proposed gas tax cut will give Californians a much-deserved tax break and help lower travel costs this summer. It has my full support.

Although I’m pleased the tax will go down this year, it’s unfortunate that California will continue to have one of the highest gas tax rates in the nation.

California has a confusing and complicated gas tax scheme that was imposed by the Governor and Legislature in 2010 over my objections. The BOE did not create this tax scheme.

Taxes are hard enough to accept, but when they can’t be simply explained, it erodes public confidence. This tax scheme is so complicated even expert tax professionals have a hard time understanding it.

Taxpayers deserve a simple and straightforward tax system that they can easily understand and won’t take them by surprise. They have the right to know how much they’re paying and where those dollars are going.… Read More

The governor’s 2014-15 budget proposes to spend $850 million from cap-and-trade auction revenue on various projects — including the state’s high-speed rail project. However, this would defy the very purpose of cap-and-trade.

Under AB 32, California’s Global Warming Solutions Act of 2006, cap and trade takes money from business owners and manufacturers who produce products, but are deemed “polluters” by the state.

It’s like being taxed for being a business that emits any greenhouse gas emissions.

That money is taken out of the economy, and given to the government to decide how it will be spent.

California business owners only know it is money they… Read More

The governor’s 2014-15 budget proposes to spend $850 million from cap-and-trade auction revenue on various projects — including the state’s high-speed rail project. However, this would defy the very purpose of cap-and-trade.

Under AB 32, California’s Global Warming Solutions Act of 2006, cap and trade takes money from business owners and manufacturers who produce products, but are deemed “polluters” by the state.

It’s like being taxed for being a business that emits any greenhouse gas emissions.

That money is taken out of the economy, and given to the government to decide how it will be spent.

California business owners only know it is money they… Read More

Californians who sold their home in a short sale in 2013 may be at risk of overpaying their state income taxes.

As you may recall, the Franchise Tax Board informed me late last year that Californians who had mortgage debt forgiven in a short sale are not required to pay income tax on that debt.

I’ve recently learned that some tax preparation software may not be up to date, potentially forcing affected Californians to pay taxes they don’t owe. Adding to the confusion, some tax preparers may not be aware of this problem.

If you have questions, please contact my office at 1-916-445-2181. For more information on mortgage forgiveness debt relief and short sales, go to FTB’s webpage or call FTB at 1-800-852-5711.

If you are unsure whether your tax preparation software is calculating your short sale correctly, you should contact the tax preparation software company’s customer service department for assistance.

Taxpayers should never have to pay more taxes than they owe. Be sure to look carefully before filing to avoid overpaying… Read More