George Runner, R-Lancaster, represents the Santa Clarita Valley and 9 million other Californians on the state Board of Equalization.

An Excise Tax on Medical Marijuana Could Make Sense

Due to a lack of regulatory structure for medical marijuana, California has become a hotbed for illicit marijuana grows. The spread of these illegal grows has stretched law enforcement thin in many areas of the state.

If done correctly, I believe an excise tax on medical marijuana could help address some of these issues.

I recently spoke with Joe Garofoli of the San Francisco Chronicle about the conditions for possible Republican support for an excise tax. I believe the cannabis industry and its users should pay to combat marijuana-related crimes, not California taxpayers who don’t use marijuana.

Any funds collected should be used solely for combatting marijuana-related crimes, rather than being redirected to the state’s General Fund.

Fire Fee Lawsuit Gets “Class Status”

On August 7, the Sacramento County Superior Court issued a ruling granting “class status” to the Howard Jarvis Taxpayers Association’s lawsuit against the California Fire Prevention Fee. This decision is welcome news to taxpayers.

If the court hadn’t granted class status, taxpayers might have been required to take legal action individually–an unfair, expensive and burdensome prospect.

When might the court strike down this illegal tax and force the state to issue refunds?

No one knows for certain, but here’s what’s likely to happen next:

Once the discovery process concludes–hopefully later this year–HJTA will file a motion asking the court to rule in favor of fee payers.

Should the judge grant the motion, there would be no need for a trial. Trials are usually reserved for cases where factual findings are necessary.

Assuming taxpayers prevail, it remains likely the state will appeal the ruling, perhaps all the way to the Supreme Court.

Still, any step forward is good news for rural property owners who continue to be subject to an illegal tax that has done nothing to provide greater fire protection.

State Government Moonlights as Slumlord

For many of us, property ownership usually turns out to be a smart investment. For the State of California, however, that doesn’t seem to be the case. A recent study to determine the safety of 29 state-owned buildings reveals that the state is a terrible landlord.

For instance, one state building is in such poor shape that the study’s authors identified $148 million in necessary spending this year alone to address deferred maintenance and safety concerns.

Should government own buildings or lease the space it needs from private sector firms who know how to take care of their property? Read my op-ed in the Sacramento Bee and let me know what you think.

Why Are California Roads So Bad?

It’s not just buildings; California’s roads are in bad shape too. And it’s not because taxes are too low. According to State Senator John Moorlach, only 20% of the money collected from the gas tax goes to road repair and new construction. Take a look at the graphic below provided by Senator Moorlach’s office and feel free to share it with your friends and family on social media.

Also, please read Assemblyman Jay Obernolte’s Los Angeles Times op-ed that explains why Californians aren’t getting good value for the taxes and fees we pay at the pump.

Upcoming Events

I’m sponsoring a few seminars in September designed to assist taxpayers and help small business owners and nonprofit organizations be successful. I hope you can make it to one.

Free Small Business and Nonprofit Tax Seminars:

• Sacramento Nonprofit Tax Seminar – September 2, 2015
• Apple Valley Small Business Tax Seminar – September 9, 2015
• Santa Clarita Small Business Tax Seminar – September 28, 2015

Register online at boe.ca.gov/seminars or call 1-888-847-9652.

Tax Tip

Q: I just purchased a voucher online through Groupon. Do I have to pay tax on that purchase?

A: Your purchase of a voucher through a service like Groupon or LivingSocial is not subject to tax. But, when you trade the voucher for taxable merchandise or services, you’ll likely be charged tax on the amount you paid for the voucher, plus any additional amount you pay to the retailer.

For more information and other consumer-oriented tax tips, see our new California’s Buyer’s