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The BOE has approved the use of the updated stamp to further reduce the trafficking of counterfeit cigarettes and related excise tax evasion in California.
The BOE is responsible for the administration and enforcement of the tax stamp program.
The upgraded tax stamp introduces a number of new security features, including special inks and a counterfeit and tamper-resistant design. The newly designed stamps will help simplify authentication and discourage tax stamp counterfeiting.
Cigarette-related tax evasion costs California an estimated $182 million annually.
New California cigarette tax stamps are gold-yellow in appearance, with a color-shifting effect visible on the left edge and a unique serial number. Retailers and consumers can expect to see the new tax stamps in use by Jan. 1.
Cigarette and tobacco taxes are “excise” taxes, or charges paid at the distribution level and often built into the retail price.
Excise taxes paid on cigarettes are used to fund state services and programs including breast cancer research, early childhood education, health education and hospital services.
In 2002, Senate Bill 1701 required the BOE to replace the heat-applied decals in use at the time with counterfeit-resistant stamps encrypted with specific information, capable of being read by a scanning device. The original high tech tax stamp was introduced into the California market in 2005.
Additionally, in 2004, the California Cigarette and Tobacco Products Licensing Act of 2003 (Assembly Bill 71 ), written by current BOE Vice Chairperson Jerome Horton, was signed into law and established a statewide program to license sellers of cigarettes and tobacco products.
Lastly, in 2007, Assembly Bill 1749 expanded provisions of the Licensing Act to include licensing requirements for manufacturers and importers of tobacco products and made the provisions of the Licensing Act permanent.
The high tech tax stamp and other BOE enforcement efforts combine to reduce cigarette tax evasion by $133 million each year in sales and excise taxes.
Chairwoman Betty T. Yee was elected to her post in November 2006. Her district includes many of California's coastal counties, from Del Norte to Santa Barbara, and includes the entire San Francisco Bay Area.
The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects more than $48 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes.
For more information on other taxes and fees in California, visit www.taxes.ca.gov.
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The dinner will be held from 6 p.m. to 8 p.m. at Howard's Grotto, 14732 Lakeshore Drive, Clearlake.
RSVPs and online reservations can be made at https://events.r20.constantcontact.com/register/eventReg?llr=rnbtxxcab&oeidk=a07e3819znn37f98878&oseq=a015tfr5ia6q9 .
The chamber office will be closed until the first of the year, so if you have any questions please call Chamber President Bob Rider at 707-994-FISH (3474).
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SACRAMENTO – The California State Board of Equalization (BOE) on Monday announced that thousands of California businesses will potentially be assessed a fee on past due liabilities beginning in 2011, under recently enacted legislation.
More than 90,000 businesses will be notified of this potential fee beginning Jan. 1, 2011.
Legislation imposed the new collection cost recovery fee and requires the BOE to collect a fee on any person failing to pay amounts due and owing.
The fee applies to most taxes and fees collected by the BOE and is intended to cover costs incurred in obtaining payment of past due amounts.
The fee may only be imposed after the BOE has notified a taxpayer of the potential fee by mailing a notice advising that the continued failure to pay the amount due may result in collection action and potential assessment of the collection cost recovery fee.
The BOE could potentially assess a fee on each liability greater than $250 that remains unpaid for more than 90 days.
The fee amount, adjusted annually to reflect the cost of collecting unpaid liabilities, ranges from $185 to $925 for calendar year 2011, as follows:
Small liability: $250.01 to $2,000, fee amount is $185;
Medium liability: $2,000.01 to $50,000, fee amount is $550;
Large liability: $50,000.01 and greater, fee amount is $925.
The BOE has identified more than 90,000 tax and fee payers with outstanding sales and use tax liabilities or overdue payments in the many tax and fee programs administered by BOE.
Taxpayers can avoid the fee by paying their liability in full prior to the fee being assessed, that is before 90 days from the date the notice expires.
The notice they receive will state that the new collection cost recovery fee will be due if each liability of greater than $250 remains unpaid for more than 90 days.
Taxpayers unable to pay in full now may still avoid the fee if they qualify for, enter into and complete an installment payment agreement, which allows for payment of a tax, fee, or surcharge debt in smaller, more manageable amounts.
Also, if the BOE finds that a taxpayer’s failure to pay the amount being collected is due to reasonable cause and circumstances beyond the taxpayer’s control, the BOE may relieve the taxpayer of the collection cost recovery fee.
The BOE estimates the fee will facilitate additional annual revenue of $5.2 million from additional collection of taxes, fees, and surcharges for the remainder of the 2010-11 fiscal year and $19.4 million to $22.6 million annually beginning in 2011-12.
This new collection cost recovery fee requirement was added to the Revenue and Taxation Codes by Senate Bill 858 (Chapter 721, Statutes of 2010).
The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects more than $48 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes.
For more information on other taxes and fees in California, visit www.taxes.ca.gov.
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A native of Northern California, Birdsong spent eight years working for U.S. Congressman Mike Thompson of California (CA-01), a senior member of the House Ways and Means Committee, handling energy, natural resources and agriculture policy for the Congressman.
For the last seven years, Birdsong was the Congressman's legislative director.
Birdsong served as Congressman Thompson’s lead staffer on energy tax policy for the Ways and Means Committee, focusing on solar, energy storage, private activity bonds for renewable energy and industrial energy efficiency.
He also managed the Congressman's land use tax portfolio covering conservation easements, estate tax and land management incentives. In addition, Mr. Birdsong has significant experience dealing with complicated federal western water and public lands issues.
“Jonathan brings the government and business skill set we were looking for in our team” said Andrew Lundquist, Managing Partner for BlueWater. “He is respected throughout this town by both Republicans and Democrats. We are happy he is on board.”
“I have known Jonathan for many years and have always enjoyed working with him,” said Eric Washburn, Partner with BlueWater. “With his extensive knowledge of energy policy issues, Jonathan will be a great asset to our firm.”
“I am thrilled to have landed with BlueWater,” Birdsong said. “It was not easy leaving Congressman Thompson because we have such a good relationship. But BlueWater had the culture, staff and commitment to hard work that I was looking for in a firm. I am honored to join this great team of professionals.”
Birdsong has a degree in political science from the University of Colorado at Boulder and a master's in business administration from The George Washington University. He lives in Washington with his wife Christy, and their two children.
Founded in 2002, Blue Water Strategies, LLC provides strategic business development and government relations advice as well as project management services to corporations worldwide. For more information on Blue Water Strategies visit www.bwstrategies.com .
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