George Runner

I’m fighting to protect your rights and bring about fair tax policies that help grow our economy and jobs. As your taxpayer advocate and elected member of the California State Board of Equalization, I welcome your ideas about how we can work together to solve the problems facing our state.

– GEORGE RUNNER

DMV Needs to Stop Robbing Taxpayers

If you recently purchased a car from a private party, you may have paid too much tax to the California Department of Motor Vehicles.

I’ve been hearing complaints from constituents that DMV charged them a higher city tax rate when they don’t actually live within city boundaries.

These constituents were forced to jump through hoops to prove they didn’t owe the higher tax. As their elected representative, I was happy to assist them in obtaining refunds, but DMV should have never overcharged them in the first place.

What’s worse is that these overcharges are not isolated incidents, but rather a systemic problem resulting from DMV’s bizarre reliance on zip codes to determine tax rates.

Sales and use tax rates vary widely across California and change over time. In addition to the statewide sales and use tax rate of 7.5 percent, many cities and counties add voter-approved local taxes. The result is some cities have sales tax rates as high as 10 percent.

Unlike typical retail transactions, the tax rate for a vehicle sale is based on the address provided to the DMV by the registered owner, not where the sale took place. If you buy your car at a dealership, the burden is on the car dealer to collect the tax. But in the case of a private party sale, DMV collects the tax when the buyer registers the vehicle.

We’re not talking pocket change here. Getting the tax rate wrong on a vehicle purchase could easily force a buyer to pay hundreds in unfair taxes. One might think DMV would take great care to calculate the correct rate. Not so.

DMV relies entirely on zip codes to determine tax. If even a small portion of a zip code’s territory has a higher tax rate, DMV typically charges everyone in that zip code the higher tax.

Read More…

Overcharged Tax on an Auto Purchase? Get Your Refund

The fact that the California Department of Motor Vehicles has been overcharging tax means some Californians could be eligible for a tax refund and not even know it.

If you purchased a vehicle in the past three years, please follow these steps to ensure you didn’t pay too much tax:

• Visit www.boe.ca.gov/taxrate to determine the correct tax rate for your address.
• Compare this rate to the rate you were charged when you purchased or registered your vehicle.
• If you were overcharged, please click this link for instructions on how to request a refund. For assistance, contact my office at 916-445-2181 or 661-723-8469.

Please know that I am urging DMV to correct its deficiencies and am hopeful that they will do so soon. In the meantime, it is vital for taxpayers to be aware of this problem so they can ensure they are paying the correct amount of tax.

Bills of Interest on the Governor’s Desk

This year’s legislative session has come to an end and hundreds of bills are now on Governor Brown’s desk waiting for his signature or veto. I am pleased to provide updates on several bills of interest that I have supported or sponsored this year:

• Moving BOE Headquarters Could Save Millions — Assembly Bill 1656 (Dickinson) requires the Department of General Services to conduct a long-term study in order to determine the three state-controlled buildings with the most significant and immediate renovation or replacement needs. The current Board of Equalization headquarters building is a money pit and safety risk for both state workers and the public, so I am confident it will be one of the three buildings selected. AB 1656 was signed by Governor Brown earlier this month.
• Tax Help for Disabled Veterans — Senate Bill 1113 (Knight) would help ensure that disabled veterans who encounter bureaucratic delays can still claim a key property tax exemption. SB 1113 was signed by Governor Brown earlier this month.
• Lumber Tax Relief — Under Assembly Bill 2031 (Dahle) retailers who sell less than $25,000 in wood products annually will be exempt from collecting and reporting the Lumber Products Assessment. The bill is on the Governor’s desk awaiting his signature.
• Property Tax Postponement — Assembly Bill 2231 (Gordon, Levine and Patterson) reinstates the Senior Citizens and Disabled Citizens Property Tax Postponement program to provide property tax deferment to qualified seniors and disabled persons starting July 1, 2016. AB 2231 was signed by Governor Brown earlier this month.
• Fire Fee Relief — Assembly Bill 2048 (Dahle, Chesbro and Gordon) makes numerous, much-needed changes to the Fire Prevention Fee, however, it unfortunately does not repeal this illegal tax. One of its provisions would exempt fee payers from having to pay the Fire Prevention Fee if they lose their home in a natural disaster. AB 2048 received unanimous, bipartisan support in both houses of the Legislature and is on the Governor’s desk awaiting his signature.

Upcoming Events

Mark your calendars for upcoming events that may be of interest to you.

• San Fernando Nonprofit Seminar — I will be holding a free event for nonprofit organizations in the San Fernando Valley, covering topics such as sales and use tax, property tax exemptions and compliance for exempt organizations. The seminar will be on October 1 from 9:00 a.m. to 2:30 p.m. at the San Fernando Regional Pool Facility. For more information, or to register online, please visit boe.ca.gov/nps.
• Pomona Small Business Seminar — Small business owners in the Inland Empire are invited to attend my free Small Business Seminar for information on sales and use tax, loan programs and services, forms of ownership, recordkeeping and more.  The seminar will be on October 9 from 9:00 a.m. to 2:30 p.m. at Indian Hills Plaza (Civic Center).  For more information, or to register online, please visit boe.ca.gov/seminars.
• Telephone Townhall for the Restaurant Industry — On Wednesday, October 29 at 10 a.m., I’ll be hosting a telephone townhall for restaurant owners. The event, co-hosted by the California Restaurant Association, will provide specific information on tax issues important to the dining and beverage industry. Those wishing to participate may register online at www.boe.ca.gov/townhall or by calling 916-445-3032.
• Roseville Small Business Seminar — Small business owners in the Sacramento area are invited to attend my free Small Business Seminar for information on sales and use tax, loan programs and services, forms of ownership, recordkeeping and more.  The seminar will be on October 30 from 9:00 a.m. to 2:30 p.m. at the Maidu Community Center.  For more information, or to register online, please visit boe.ca.gov/seminars.
  

For more upcoming events, see boe.ca.gov/Runner/events.

Tax Tip

Q – What is the California Competes Tax Credit?

A -The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. Tax credit agreements are negotiated by the Governor’s Office of Business and Economic Development (GO-Biz) and approved by the “California Competes Tax Credit Committee.” The first application period for the 2014-15 fiscal year runs from September 29  through October 27, with $45 million available.

GO-Biz is hosting a series of workshops on how to apply for the California Competes Tax Credit. I am co-hosting the Sacramento workshop, which takes place on Monday, October 6 from 1:00 p.m. to 3:00 p.m. For more information on this and other workshops, please see the GO-Biz event page.

For more information, visit the GO-Biz California Competes Tax Credit webpage.

In the News

State sinks money into high-rise called a ‘disaster’ (SF Gate, 9/29/14)

Audit: California Board of Equalization should leave troubled building (The Sacramento Bee, 9/26/14)

Editorial: DMV cavalier about tax overcharges (Orange County Register, 9/26/14)

Why can’t DMV charge right tax rate? (UT San Diego, 9/18/14)

Emergency tax relief available for business owners affected by wildfires (Ukiah Daily Journal, 9/17/14)

The DMV Needs To Stop Robbing Taxpayers Via Wrong Zip Codes (The Ceres Courier, 9/17/14)

Buy a car? The DMV may owe you money (SF Gate, 9/16/14)

Interview with John & Ken re: DMV (The John and Ken Show, 9/11/14)

Board Of Equalization Member Accuses DMV Of Overcharging Taxpayers (CBS LA, 9/11/14)

Is Your ZIP Code Costing You Money? (Capital Public Radio, 9/10/14)

Record-breaking sales: Stanislaus agricultural exports soar (The Modesto Bee, 9/9/14)

Has the DMV Been Overcharging Consumers on Vehicle Purchases? (KFBK, 9/9/14)

Bill to Help Disabled Veterans Heads to Governor (Sacramento Today, 8/26/14)