George Runner

George Runner is an elected member of the California State Board of Equalization, representing the Santa Clarita Valley along with one-fifth of the state.

California Would Create More Jobs Without Prop 30

In his recent piece for The Sacramento Bee, “State’s job growth defies predictions after tax increases,” David Cay Johnston argues that California’s recent job creation numbers prove recent tax increases embodied in Proposition 30 aren’t killing jobs or slowing economic growth.

Yet the evidence Johnston presents is less than convincing-surprising for an academic and former investigative journalist. He points to recent positive job growth numbers but neglects to mention that California’s “unemployment rate” remains tied for fifth worst in the nation.

Thirteen counties in California still have double-digit unemployment rates, the highest of which is 22 percent.

Due in part to California’s oppressive tax and regulatory climate, the recession was markedly worse in our state. As a consequence, we ended up with a bigger jobs hole, and we now need more jobs than other states to fill that hole.

Yet in the past year, states with lower unemployment rates like North Dakota, Utah, Texas, Delaware, Colorado, Florida, Oregon, Indiana and Washington have all out-performed California in per capita job creation.

At best, California’s job creation record is middle of the road. Given our climate, natural and human talent, and need for jobs, we should be leading the nation in employment gains.

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Tax Legislation for Disabled Veterans Heads to Governor

I am pleased to announce SB 1113 (Knight), my sponsored proposal to protect disabled veterans, cleared the Assembly last week with unanimous, bipartisan support, and now awaits action by Governor Jerry Brown.

Under California law, veterans who receive a 100% disability rating from the U.S. Department of Veterans Affairs (VA) may be eligible for a property tax exemption on the value of their home up to $124,932 or $187,399 in 2014 and equivalent amounts adjusted for inflation in future years. The exemption starts on the date of disability and disabled veterans may claim a refund for up to four years of back taxes paid.

Unfortunately, due to VA backlogs, some veterans have had to wait more than four years to receive their disability rating certifications. As a result, they’ve missed out on thousands of dollars in property tax refunds to which they were entitled and anticipated receiving.

SB 1113 would increase the availability of refunds on taxes previously paid from four years to eight years, allowing veterans to receive the full benefit of their exemption, even if the rating process takes more than four years to complete.

Senator Steve Knight, the bill’s author, stated, “Veterans who are disabled as a direct result of serving our country shouldn’t be penalized for delays over which they have no control. I commend my colleagues for backing SB 1113 to ensure disabled veterans have access to the tax benefits they deserve.”

I also applaud the Legislature for passing this legislation to help the men and women who have bravely served our country. Bureaucratic delays should never rob veterans of the tax benefits that are rightfully theirs.

Recent Outreach to Taxpayers

California is home to nearly 1,300 new car dealerships that generate more than $93 billion in sales and over 120,000 jobs. The industry is not only vital for helping people get from one place to another, it’s an important part of our state’s economy.

That’s why I recently hosted a “Tax Help for New Car Dealers” telephone townhall with the California New Car Dealers Association where we discussed sales and use tax issues that affect the new car dealer industry.

Participants had the opportunity to ask specific questions, and we had a number of great questions from individuals across my district. They brought up topics such as interstate sales, rebates, warranty repair work and loaner vehicles

In case you missed it, here’s the audio recording.

You can find the townhall recording, as well as additional taxpayer resources, at my Tax Help for New Car Dealers website at boe.ca.gov/cardealers.

Upcoming Events

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

• Fresno Nonprofit Seminar — I will be holding a free event for nonprofit organizations in the Central Valley, covering topics such as sales and use tax issues, property tax exemptions and compliance for exempt organizations. The seminar will be on September 11 from 9:00 a.m. to 2:30 p.m. at the Gap Distribution Center. For more information, or to register online, please visit boe.ca.gov/nps.
• Stockton Small Business Seminar — Small business owners in the Central Valley are welcome to attend my free Small Business Seminar for information on topics such as sales and use tax problems, loan programs and services, forms of ownership and recordkeeping. The Seminar will be on September 16 from 9:00 a.m. to 2:30 p.m. at the Robert J. Cabral Agricultural Center.For more information, or to register online, please visit boe.ca.gov/seminars.
• Santa Clarita Small Business Seminar — Small business owners in the Santa Clarita area are welcome to attend my free Small Business Seminar for information on topics such as sales and use tax problems, loan programs and services, forms of ownership and recordkeeping. The Seminar will be on September 19 from 9:00 a.m. to 2:30 p.m. at the College of the Canyons. 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 – If I negotiated a mortgage loan modification or had a short sale of my home in 2013, do I have to pay additional California state tax?

A – Last month, Governor Brown signed AB 1393 (Perea) which extends California’s modified conformity to mortgage debt forgiveness for one year, through 2013. Prior to AB 1393, taxpayers who negotatied a loan modification were eligible for relief on their federal taxes, but not their California tax obligations. AB 1393 ensures California taxpayers will get the same relief afforded at the federal level on their state taxes.

To learn more, visit the Franchise Tax Board’s Mortgage Forgiveness Debt Relief webpage.

In the News

Runner-sponsored bill to help disabled veterans heads to governor (Lake County News, 8/21/14)

Santa Clarita Valley Rotary Club Has George Runner As Speaker (KHTS, 8/14/14)

Another View: Simple changes helping California small businesses and entrepreneurs (The Selma Enterprise, 8/13/14)

George Runner: State can create more jobs without Prop. 30 (The Los Angeles Register, 8/7/14)

Make incentives universal (The Daily Press, 8/5/14)

Letters: Failure of AB 2510 empowers government (The Orange County Register, 7/27/14)