The BOE is sending letters to businesses with at least $100,000 in business gross receipts who are not already registered with BOE and do not hold a seller’s permit. This means all businesses, regardless of business type (including tax practices), must register.

The letters state that the BOE has identified these businesses as qualified purchasers subject to a use tax return filing requirement (even if no use tax is due). Businesses that receive the letter must complete the contact info and mail it to the BOE. The BOE will then register the business and send them an account number and log-in information so that they can e-file their returns. The 2009 returns are due April 15, 2010. Taxpayers who did not report use tax for 2007 and 2008 must file returns to report and pay that tax. We believe this is the first step in an audit process that will continue indefinitely.

Spidell is working on a worksheet for clients to track use tax liabilities and a checklist for practitioners to easily get needed information. We will have the practice aids prepared and available at Spidell’s Fall Tax Update Seminar. Register now at a location convenient to you. You may want to attend in November or December to prepare for the onslaught of requests from your clients.

The letter below is from Amy C. Mmagu, the Legislative Assistant from CalChamber, welcoming new businesses into the fold.

Dear California Businesses For Enterprise Zones Coalition Members and EZ Supporters:

For those of you who recently joined CalChamber’s California Businesses for Enterprise Zones coalition, we would like to extend a warm welcome, and for those who are continuing members, thanks for your continuing support of EZs!

We just wrapped up the Legislative Session for 2009, which is in recess until January 2010. However, legislative activity concerning EZs has been scheduled to continue throughout the legislative recess months, including informational hearings and work on legislation. It will be important for EZ supporters to stay engaged, as we work to protect the strength and integrity of the EZ program.

The Assembly Committee on Jobs and Economic Development has hearings scheduled for the month of October in both Northern and Southern California:

Northern California:
Thursday, October 8, 2009
10:30 a.m. to 1:30 p.m.
San Jose, California
This hearing focused on the role of EZs as a facilitator of global innovation and manufacturing

Southern California:
Wednesday, October 14 hearing
10:00 a.m. to 1:00 p.m.
San Diego, California
This hearing will focus on workforce development and measuring success of the program

Public comments will be taken at both hearings. We are encouraging EZ supporters to attend the hearings in your respective geographical areas and speak during public comment period, which have been scheduled to take place during the lunch hour to facilitate members of the public’s work schedules.

In particular, businesses with success stories about the program are encouraged to attend. If you are or know of a business with a success story (whether attending or not), please contact me at amy.mmagu@calchamber.com.

We will continue to be in touch regarding further EZ developments.

Thanks!

Amy C. Mmagu

Dear CAEZ Members,

On Tuesday, July 21, Tonya Dowse, Max Shenker, Gary Buse, Lina German and I had the opportunity to meet with Jeanne Harriman at the Franchise Tax Board offices. Jeanne introduced us to two of her colleagues, who will be assuming her Enterprise Zone program duties and have been welcomed as part of the CAEZ family. James Dudley and Jaymie Mora have a combined 16 years experience handling Enterprise Zone-related issues for FTB and have been working with Jeanne for many years. They are happy to make themselves available to CAEZ Members. They will be attending our Sacramento Board meetings and handling the FTB update portion of our meeting agenda. They have also been invited to attend and participate in our Annual Conference in Fresno.

Following the Board meeting on Wednesday, July 22, the CAEZ Board of Directors and Advisors met with the new HCD senior management team, which is responsible for the Enterprise Zone program. James Nunn, has been appointed Program Manager for the Enterprise Zone program and Tom Bettencourt has been named the Federal Programs Branch Chief. Frank Luera’s position as Section Chief is still open and a search is underway to fill that slot. Another new face is Kristin Power, Deputy Director for Legislation at HCD. Kristin will be assuming an active role in Enterprise Zone legislation and public policy issues related to the program.

This new management structure has also invited CAEZ to form an HCD/CAEZ Advisory Council, to facilitate better and more frequent communication with the HCD administrative team. The exact shape and structure of this Advisory Council will be discussed between the Board of Directors and HCD staff in the coming weeks. I envision this Advisory Council as a forum for the CAEZ Board and our Members to enhance the program, as well as raise questions and concerns about the program and have them discussed and resolved. I will keep you informed as this develops further.

Thank you for your continued support of CAEZ and the Enterprise Zone program.

CRAIG JOHNSON
President
California Association of Enterprise Zones