Sales Tax News Roundup
- Sales and Use Tax
- June 17, 2011 | Steven Dunston
This week: South Carolina Senate shoots down gun tax holiday, Governor Brown vetoes California budget lacking a sales tax hike, and non-profits struggle to regain tax-exempt status after being declared dead by the IRS.
South Carolina Senate Questions Need for Gun Sales Tax Holiday
The state Senate has shot down a proposal to continue sales tax-free gun sales over Thanksgiving weekend. The proposal – dubbed the "Second Amendment Weekend" – has been included in the budget the past three years at the urging of state Rep. Mike Pitts, R-Laurens. —TheState.com
California Assembly Budget Vetoed by Governor Brown
California Governor Jerry Brown vetoed Thursday the budget passed by state lawmakers the day before that relied on spending cuts, fund transfers and one-time revenue boosts.
Brown, who has promised for months that he would present Californians with a gimmick-free budget that solves the state's $26 billion deficit with a combination of tax extensions and spending cuts, said the legislators' budget was not a balanced solution.
In vetoing the budget, the governor, a Democrat, once again lashed out at Republican lawmakers. He called on them to put his plan to extend personal income and sales tax hikes on the ballot. —money.cnn.com
IRS Throws Out Live Non-Profits With The Dead Ones
The Internal Revenue Service is cleaning out its records. In a nationwide press release last week, it listed 275,000 nonprofit groups it believes are defunct and announced that they have lost their tax-exempt status. But it was wrong about some of the local ones - they aren't dead.
"We don't want to be on that list," said Rick Wilburn, a board member and former president of the Tupper Lake Chamber of Commerce. He said chamber officials thought their IRS status was fixed last year, but apparently it wasn't.
"Why weren't we alerted?" said Judy Bibeau, regent of the Catholic Daughters Court St. Bernard's 787 in Saranac Lake. "We're always up on everything. It just blew our minds when we found out about it this morning."
Both of these groups are, in fact, active, whatever IRS records say. So are the American Legion and Moose Lodge in Tupper Lake, and the Lions, Kiwanis, Sister Cities and Police Benevolent groups in Saranac Lake. But the IRS says each of them went at least three years without filing forms that have been required every year since 2007. —Adirondack Daily Enterprise