AgdaPkt 2004-03-08 - Laserfiche WebLink

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1.A-IO BOE from page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The proposal is inconsistent with current rected to the jurisdiction where that credit applica- SBOE regulations and policies, and would be tionlcheck office is located, substantial amounts of contrary to current league policy that attempts to ¡;ales tax could be diverted from multiple cities to preserve a nexus relationship for local sales tax just one city or county. It appears that this proposal distribution. Currently, in the case of sales tax, the col.!'d potentially allow a similar setup for Macy's, situs basis is applicable for sales tax distribution, Wal-Mart or Costco. This is why city officials have except in the case of remote sales such as to fully participate in the upcoming BOE hearing on catalog or Intemet. In those cases, the delivery this issue. point is be the basis for distribution of the use tax. The Board of Equalization will distribute the The proposal is centered on an attempt by Business Taxes Committee's updated Materials Land's End, a mail order and Intemet retailer Preparation and Review Schedule for 2004 in early based in Dodgeville, Wisconsin, to alter the use March 2004, that will indicate the due dates for tax methodology. land's End takes all its sales interested party submissions and distributions of orders, performs credit checks, and makes all its discussion papers and issue papers, as well as deliveries by common carrier from the Dodgeville any scheduled meetings of interested parties. location, Currently land's End is registered to Board staff will include all cities and counties on its collect use tax on its sales to Califomia custom- mailing list for this topic. ers and allocates the local use tax portion to cities and counties throughout the state through the The League urges cities to review this pro- medium of the Board's countywide pool system, posal and participate in the interested parties according to the customer's location. process. Once the discussion and issue papers are available, the league will prepare a response. Under this new proposal, land's End intends We seek your comments on this issue. Please to make its deliveries f.o.b. destination so title to address questions and responses to Frances the goods will pass in Califomia. It has or will Medema, Management Analyst, at email have an employee in the City of Ontario, located medemaf(!j¡cacities.orQ or telephone at (916) 658- within a facility belonging to its parent company. 8218. That employee's responsibility is or will be to perform an additional credit check of only Califor- nia customers on all orders taken in Wisconsin, using the taxpayer's parent company's nationwide LOOKING FOR CALIFORNIA'S BEST TO database. The employee in Califomia has no FILL A POSITION IN YOUR CITY? contact with Land's End customers. The com- pany requested the BOE to in tum direct its staff Western City Magazine's job opportunity to issue it a seller's permit so that it could report section is the source for job seekers looking for sales tax collections instead of use tax. The positions in local government. According to our resulting local sales tax would thus be allocated to reader survey, the job opportunity section is the Ontario. The Board referred the matter to the best read section of our magazine! Business Taxes Committee for discussion. Land's End's request will have a potential impact When you place an ad in Western City on Regulations 1620, 1699, and 1802. Magazine, it will be posted at no additional This proposal sets a very serious precedent charge on our website, which receives over for the distribution of sales tax in Califomia. If 80,000 hits per month. other companies/retailers can simply establish a Call to place your recruitment ad today! central office to perform the proper credit checks for their customers and then have all sales di- PAGE 10IPRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org