Flashreport Blog

Some good news for the State of California…

The State Board of Equalization collected $1.86 billion in general fund sales and use tax revenue last month, surpassing the state’s $1.74 billion budget estimate.

The state’s year-to-date general fund sales and use tax revenues are now meeting projections. From July 1 through October 31, the state received $6.5 billion in revenue, narrowly exceeding the state’s budget projection.

October’s revenues came from sales taking place prior to the gas price spike of early October. Retailers must file returns monthly, quarterly or annually depending on the size of their business.

Let’s hope that stronger tax revenues are a reflection of a recovering economy rather than merely the result of higher prices.

… Read More

Today, the Howard Jarvis Taxpayers Association filed a class action lawsuit against Jerry Brown and the Legislature to overturn the unconstitutional Fire Tax.

As one of California’s elected tax officials, it’s my responsibility to use my elected office to ensure that taxpayers are treated fairly.

Accordingly, I commend the Howard Jarvis Taxpayers Association for bringing together Californians from every walk of life and region of our state to right the wrong that is the fire tax.

The Governor and Legislature’s willingness to impose such an unfair and regressive tax in direct violation of the Constitution should serve as a wake-up call for all freedom-loving Californians.

I am pleased to lend my full support to this lawsuit, and I look forward to seeing it prevail.… Read More

The Governor must act on the budget by midnight today. If he had the courage, he would send it back and demand the Legislature send him a fully vetted plan that is truly balanced, contains real reform and spurs job creation in our state.

The truth is that California won’t have a real budget until November. That’s when voters will decide whether to embrace or reject the billions in higher taxes the budget assumes.

Should taxes fail, the budget calls for billions in ‘trigger cuts’ to education funding. I suspect these ‘trigger cuts’ are little more than a head fake aimed at scaring overtaxed Californians into taxing themselves even more.… Read More

I sent a letter to theGovernor and legislative leaders todayurging them to consider aproposal by Amazon.com that would bring an estimated 7,000 jobs to California. I also asked them to re-evaluate the projected budget revenue associated with the “Amazon Tax” (AB 28X).

Read my letter here.… Read More

Although I continue to remain deeply concerned about California’s economic recovery, I’m pleased to report that our state’s budget picture—at least when it comes to sales tax—isn’t quite as bleak as it might seem.

On Tuesday, the State Controller reported that sales and use tax general fund revenues for the month of July were $977.6 million, 12.5% below the Department of Finance projection of $1.12 billion.

However, BOE actually received $1.64 billion in July, more than half a billion dollars above the budget projection cited by the Controller.

The competing revenue numbers are the result of two different methods of accounting. As required by statute, the Controller looks at “money in the bank,” which does not include pending deposits. BOE numbers reflect “money in the door,” which includes all payments—including those received but not yet deposited.

The last few days of July saw more than $600 million in sales tax revenue received by BOE. These dollars were not included in the Controller’s report because they had not yet been deposited into state coffers. Retail… Read More

California taxpayers are celebrating a rare victory. Despite Democrat efforts to extend them, the sweeping “temporary” tax increases of 2009 have gone away. This is an uncommon treat, as many prior tax hikes sold as “temporary” are still with us today.

As Californians enjoy the benefits of this victory, today marks the 20th anniversary of a prior sales tax increase that is still with us. On July 15, 1991 Californians were impaled with a “temporary” sales tax increase of 1.25%. This measure was enacted by the Legislature to address the state budget shortfall during the early 1990s economic downturn.

Fast forward to June of this year. A 2009 sales tax rate increase of 1% was set to expire on July 1, 2011. Despite a vote of the people against extending this and other temporary tax increases, Governor Jerry Brown and Democrat legislators unsuccessfully sought a five year extension of these taxes.

These higher taxes amounted to billions of dollars per year out of the pockets of struggling Californians and into the hands of wasteful government. Combine the 2009 temporary sales tax increase with the 1991 temporary sales tax increase, and… Read More

Democrat lawmakers are protesting a proposed referendum on California’s new “Amazon Tax” law. But keep in mind that this issue isn’t about Amazon. It’s about the thousands of California jobs the “Amazon Tax” places in jeopardy.

The lawmakers who authored the ‘Amazon Tax’ should be ashamed to appear in public. Their law has failed to achieve their goals. Instead it is punishing thousands of California small business affiliates who are losing income and may even be forced to leave the state.

The Legislature should admit its mistake and repeal the Amazon Tax. But short of that, the fastest way to save California jobs is through a referendum rather than years of costly litigation. Let the people engage in the debate and decide the issue for themselves.… Read More

Over the last couple weeks the usual tax and spend pundits questioned if Republicans were relevant in the recent budget debate. As usual they had the answer wrong. Not only were they relevant, they helped stimulate the economy.

Last week, my wife informed me that for a week in July, our family will be camping for a week a few miles from our home with other members of our church. We would sleep and eat at the camp site and people (like me) that needed to go to work could. Apparently pretending to be homeless for six days and five glorious nights in the summer heat near perfectly good showers, beds and air conditioning will bond us together spiritually. I am sure it will for the survivors. That said, I had orders to go get a new tent and an additional sleeping bag.

Knowing that Republicans had stood strong against Democrats trying to get a “bridge” tax increase extension, I waited until July 1. I bought the tent and sleeping bag and saved a total of $1.24 on the 1% reduction in sales tax that occurred at midnight June 30. In addition I bought the gear near work and not in Los Angeles County which saved me another $1.24 in sales tax. Los Angeles County is 1%… Read More