California Tax Laws

The state of California has the biggest economy of any of the other American states. The state’s Franchise Tax Board administrates California’s taxation, passing out as well as enforcing the laws with regards to income tax, property tax and sales tax, among others. California’s tax laws have numerous forms and they cover a wide array of economic activities. 

One of the state’s primary tax revenue sources is sales tax and the states standard sales tax rate is at 8.25%, with items like prescription medicine and groceries being exempted from taxation. The state’s tax laws also place special taxes on both cigarettes (with a surcharge of 87 cents) as well as gasoline (46.6 cents for every gallon). As a California resident, you need to declare the purchases you’ve made over the Web and then submit the right local tax for them.

As for property tax, as a resident of the state, all of your real estate properties need to be assessed for them to be taxed at 100% of their respective tax values. Tax rate differs depending on the property’s value. However, it can’t go beyond 1% of that value within a tax year.

Historically, the state of California has exempted specific residents, like the disabled and the elderly, from paying some or even all their property taxes. However, numerous exemptions have been stopped because of California’s financial crises of 2009.

Finally, each resident or worker of the state needs to pay income tax. If you’ve lived in the state for just a part of the year, you could indicate your residence status on your tax form and then pay a pro-rated part of the right amount of income tax.

The state’s lowest income tax bracket is at $7,168, where you pay your tax at a 1.25% rate. However, if you’re earning above a million dollars per year then you’ll pay 10.55% income tax. Between these two, there are six income space brackets.

If you have dependents, you may claim a $98 tax credit for every one of them. The state of California provides supplementary credits if you’re single, married or a senior above the age of 65.

What to Ask Your California Tax Attorney

There are times when you’ll need legal help when you want to know more details about the state of California’s taxes and who better to help you than a well experienced California tax attorney. However, before you go and obtain the services of one, you ought to know what to ask your California tax attorney. 

 First off, ask your California tax attorney how skilled s/he is when it comes to negotiating. It doesn’t matter what sort of tax issue you have since you’ll need a tax attorney who’s not afraid to have talk with the Internal Revenue Service, or IRS. However, look for an attorney who doesn’t just talk but presents vital arguments as well as real concessions since these are what will allow you to avoid any more tax issues. 

Next, ask your tax attorney what s/he knows about both state as well as local taxes. In hiring a California tax attorney, you must make sure that s/he has the expertise necessary when it comes to the state’s and your locality’s taxes. If s/he isn’t, then it’ll better for you to look for some other tax attorney. 

Ask your California tax attorney how skilled s/he is regarding problem prevention. A successful tax attorney doesn’t wait for any problems to spring up because s/he makes a plan that prevents any of them to begin with. You ought to be more than able to rely on your tax attorney to relate to you tax details sans the risk of violating even the smallest of tax laws. 

Finally, ask your California tax attorney how good s/he is at organizing. Your tax attorney is probably going to have offices at various locations. However, s/he is going to be organized enough when it comes to balancing all of them without upsetting anybody else. If the California tax attorney you’re planning to hire is flooded with other problems from the other offices, hire someone else.

You and Your California Tax Lien Certificates

You and your California tax lien certificates may prove to be quite the safe as well as profitable investment. Investing in them is a truly safe investment since they get issued by the state to investors in order to cover funds that delinquent taxpayers owe but hasn’t paid. 

However, this doesn’t mean that you’ve bought the rights to a delinquent taxpayer’s property. This means that you’ve only gotten documented proof that you’ve paid the delinquent taxpayer’s taxes. Thus, when the owner finally chooses to pay taxes, you, as the tax certificate holder, are going to get repaid for the initial investment you’ve originally paid. 

You’ll get the initial investment you’ve given plus an investment return, which comes in the form of late fees, or liens, the state charges to the owner of the property who wasn’t able to pay their tax on time. This fee that gets charged will be collected and then forwarded to you. This is where you’ll benefit from your California tax lien certificates. 

Tax lien certificates are guaranteed by properties that govern them. Interest rates are predetermined and they have no relation whatsoever with the stock market, so you’ll know what your return rate will be. A delinquent property holder pays late taxes more than 98% of the time and this is what makes investing in California tax lien certificates a great investment once you absolutely know what to do. 

 If that didn’t send your mind to flights of financial fancy, you should consider investing somewhere else. Many a wealthy investor has made use of California tax lien certificates for quite some time now. With guaranteed interest rates, more than a 98% success rate of delinquent taxpayers paying you back as well as the California tax lien certificate getting back up by the properties themselves, you can be sure that this investment is definitely worth the effort.

California’s Budget Deficit Vanishes Although Debt Stays

Jerry Brown, the governor of the state of California, said that the state is going to have $851 million in surplus budget once the 2013-14 fiscal year ends if the state’s legislators agree on the budget that he has proposed.During a press conference, Governor Brown stated that it’s new and is a breakthrough following California possibly returning to the black after being in the red for years.

 Brown credited the move to the new taxes approved by the voters back during the elections, aside from the steep budget cuts. He added that the cuts were three times the amount of the increase in taxes. The Governor further stated that the ill-advised tax cuts that previous Governors approved, overspending as well as the recession were the reasons the state has had financial issues.

 In spite of the welcome news for the deficit, the Governor was concerned that there was a debt that still needs to be dealt with. The state of California still has over $34 billion in debts, which ought to drop to a mere $4 billion come the year 2017. 

 Likewise, Brown advised that federal economic insecurity with the deficit of the nation as well as the rising costs of health care are other issues that the state needs to watch out for. 

 Under the Governor’s proposal, schools are going to get $56.2 billion in funds for the following fiscal year even though educators asked for additional funds in order to prevent additional tuition fee increases, especially at public universities. Brown advised being more efficient with the allocated funds in order for the increases to be avoided. 

 Additionally, Governor Brown allocated $350 million for California’s Medi-Cal program in order to employ the federal overhaul of the Affordable Care Act. However, that could change as the provisions of the law are enacted. 

 In November, California’s Legislative Analysts’ Office projected a state deficit amounting to $1.9 billion, which is down from $15.7 billion for the present fiscal year.

10 Job Skills Every Employer Wants

by Chad Brooks

With competition for new jobs at an all-time high, employees must have the skills employers are targeting. 

From the ability to communicate effectively to the willingness to wear multiple hats around the office, employers today seek workers with a variety of the skills. Here are 10 skills employers look for most in today’s fast-paced, technologically advanced workplace:

Commitment

Commitment to both their job and their employer is something Dennis Boone, former president and CEO of Verizon New Jersey and the current director of Montclair State University’s Feliciano Center for Entrepreneurship at the School of Business, has always looked for in workers.

“An employee committed to achieving their goals and objectives is a marvel to witness,” Bone told BusinessNewsDaily. “I especially value the employee that, when times are tough, continues to strive for solutions and refrains from the ‘blaming others’ behavior that, unfortunately, we see too often.”

The Extra Mile

In order to gain a boss’ confidence, employees must be willing to go above and beyond what is typically required of them on the job, said Brett Good, a senior district president for Robert Half International.
“Employees who take on projects that fall outside their normal responsibilities can expand their skill set and explore new avenues for professional growth,” Good said. “While you may not always have the time to volunteer for an extra assignment, passing on every opportunity will prevent you from being viewed by your manager as a go-to person in the department.”

Wear Multiple Hats

Kevin Watson, CEO and co-founder of jobdreaming, said small businesses don’t have room for people who just want to do their job, and their job only.
“Employees that will get hired more easily and ultimately succeed are those that show an eager willingness to do whatever needs to get done, not just what’s in their job description,” Watson said.

Positive Attitude

Having anything but a positive attitude is non-negotiable for Brian Goodman, managing director of Experis.

“Attitude drives success, and people want to be around positive people. It is contagious, and others will notice,” Goodman said. “Naysayers are a drag on business.”

Decision Makers

Executive coach and leadership consultant Dave Gambrill believes the one skill that every employee must have is the ability to think critically and make appropriate decisions.

“Leaders don’t want to micromanage their employees, but often they are forced to because the employees lack critical thinking skills,” Gambrill said. “Ideally, you’d like to say, ‘I trust you to make decisions that are good for the business,’ and let people come up with their own solutions.”

Passion

Elle Kaplan, CEO and founding partner of Lexion Capital Management LLC, said it is important for entrepreneurs to find employees who are just as passionate about their job as the boss is.

“When an employee believes strongly in the company’s mission, their job is no longer a job. It’s a calling,” Kaplan said. “I’ve learned firsthand that people work harder when they feel connected to and believe in your mission as a leader and the mission of the company.”

Organized

In today’s fast-moving business world, the worst thing an employee can be is a drain on their boss’ time, said Nick Gidwani, founder of Skilledup.com.

“Employees should be always adding value, and the easiest way to destroy value, so to speak, is to not have your own work organized,” Gidwani said. “That could mean simple ideas like naming files or folders properly, or more substantial tasks like writing high-quality meeting recaps.”

Dependable

Wendy Pike, president of Twist office products, said she searches for employees who can be depended on consistently to get the job done.

“As an employer, we need to be able to count on our employees to show up on time and do the work we are paying them to do,” Pike said.

Communication

In today’s workplace, communication is the skill of utmost importance, said Charley Polachi, co-founder and partner at Polachi Access Executive Search.

“You must have communication skills that allow you to succinctly and effectively contribute your thoughts,” Polachi said. “An effective communicator leaves no room for error and can exhibit thoughts in a direct manner.”

Conscientiousness

Time and time again, conscientiousness proves itself to be among the top indicators of job performance, said Lynda Zugec, managing director of The Workforce Consultants. “Make sure you pay attention to the details,” Zugec said. “Spelling and grammatical errors, lost and misplaced files, or general disorganization have the potential to make or break you.”

The Burning Man in Nevada

On September 15, 2012, Jason Buzi went on a trip with his girlfriend to participate in a week-long annual event that is held in the Black Rock Desert in northern Nevada, United States. The event is named the “Burning Man”, which is taken from the ritual burning of a large wooden effigy. Taking place between August 27 and September 3 every year, it is a kaleidoscope of art, radical self-expression and self-reliance.

Unlike other thrill seekers, who would go to the event 6 months to a year in advance, Jason Buzi and his girlfriend decided to attend it about 2 weeks prior. Along with his best description of such event is likened to a “giant outdoor art and music festival”, he further describes it in some ways, from a “giant rave” to a “huge drug induced party”.

Jason Buzi considered himself as a frequenter to the event (It was his 4^th time since 1999),on the other hand, it was his girlfriend’s debut. They both arrived in a Saturday morning. Jason Buzi reminisce the part when they walked along the “playa”, which is from the Spanish word meaning beach and witnessed the wonderful art installations as the highlights of the whole event. As for him, it is the art installations that made a good impression of him about the “Burning Man”.

Other than the art installations, they were able to take a ride in a replica of a Mississippi riverboat, and festival floats that resemble a sardine can, a train and a fish. Furthermore, they were able to visit a temple, which showcased moving inscriptions.  Also, they were able to meet many interesting people from all walks of life. Moreover, they enjoyed the program proper where in “the man” is burned and a fire dance and fireworks followed after. Everything was a very fun experience for them and they absolutely look forward in attending the event again.

Coalition Battles Sudden Tax for Small California Business Investors

During the previous month, around 2,500 investors in small business in California, including certain funded Silicon Valley technology start ups, have gotten an unpleasant surprise with the advent of new investment gains tax bills that go back to the year 2008.

Back in January, you’ve heard about the background story on retroactive taxes, namely the Qualified Small Business Stock Incentive or how the state went back on a certain business tax break as well as their investors, and would now want that cash. However, investors are not doling out the $128 million estimate the state’s seeking to get back without fighting. 

One of the partners in Reed Smith LLP, a state tax cluster, Marty Dakessian, stated their firm is currently shaping a coalition in order to repulse the California Franchise Tax Board verdict to put an end to the incentives. It was stated on the coalitions website that the group is dedicated to pursuing both legislative as well as legal methods in preventing the aggression of the FTB.

The California Business Defense, one more advocacy group formed by a few entrepreneurs, is also doing some lobbying on the issue. One of the group’s organizers as well as CEO of AdverseEvents, which is a medical information firm, Brian Overstreet, has said that numerous entrepreneurs have joined in the cause because of tax bills that have reached over $100,000 for each.

Derived from past rulings in similar conditions, Dakessian stated that the FTB can still grant refunds to out-of-state businesses which are categorized against by the incentives, rather than taxing investors in California business.

He further said that it’s vital that people not just be spectators and that there’s a solution.

Apart from a potentially lengthy as well as costly lawsuits brought by the taxpayers against the FTB, the coalition has helped in gathering 38 bipartisan signatures on a letter coming from state lawmakers asking the FTB it make use of its authority in order to reverse the course. It was sent to the FTB on the 19^th of February.

Dakessian stated that the action got partially prompted by small business investors calling about getting notices of proposed assessments, i.e. new tax bills, for about $7,000, with additional interest up to $15,000 to $20,000.

Dakessian, who’s based in Southern California, further stated that it’s already happening and that oftentimes it happens to the high-tech industry people as well as entrepreneurs. Likewise, he also said that most of the calls they’re getting come from them.