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Welcome
Dear Friends:
This month, I would like to share a recent opinion piece I wrote for the North County Times about the Board of Equalization’s new San Diego District Office and the work being done at BOE to increase customer service and efficiency, as well as reduce costs for taxpayers through consolidation and new tecnology.
The new state-of-the-art office will serve the taxpayers of San Diego and Imperial counties. It is a result of the consolidation of the agency’s San Marcos and Downtown offices. The new office is the first in the state to provide e-File kiosks that will allow taxpayers to file their taxes with just a click and without waiting in a long line.
Finally, I’d like to share some important new information about gas prices, from the Board of Equalization. Gas consumption in California is dropping as prices continue to rise. But gas prices are not the only prices rising. Because of higher gas prices, the price of every product that is manufactured or transported using gasoline is also rising. Further, even though gas consumption is down, state revenues from gas continue to climb because of higher prices.
As always, I am honored to serve as your taxpayer advocate. If I can be of any assistance, please do not hesitate to contact me.
Yours truly, Michelle Steel Vice Chair California State Board of Equalization
Upcoming Taxpayer Events
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On April 4 , I will be hosting a free small business seminar and resource expo in Encinitas with State Senator Mark Wyland and Assemblyman Martin Garrick, at the Encinitas Community and Senior Center.This free seminar is geared towards new business owners, entrepreneurs considering starting a business, and business owners that have questions about state or federal tax laws. Presentations include Basic Sales and Use Tax, Better Business through Better Records, State Income Tax and Small Business, Employee or Independent Contractor, U.S. Small Business Administration Loan Programs and Services, Developing Business Plans, and Business Marketing.These Free Small Business Seminars are an excellent opportunity for small-business owners, and for those thinking of starting small-businesses, to network and to interact directly with state and federal tax agencies; to learn about their rights as taxpayers, and how to navigate our complicated state and federal tax codes.To register go to: http://www.boe.ca.gov/cgi-bin/seminar.cgi?FLAG=159
On April 11 , I will be hosting a free tax seminer for nonprofit and faith-based organizations with Board member George Runner at the City of San Bernardino Council Chambers.
This free tax seminar is for new and existing non-profit organizations, faith-based organizations and individuals who have questions about state and federal tax laws. This seminar will feature presentations on tax laws, exemptions, and reporting requirements designed to assist nonprofit and faith-based entities. Topics include sales and use tax information for nonprofits, property tax exemptions, regulation of charities and fundraisers, compliance and federal tax issues for exempt organizations, and employment taxes for nonprofit organizations.
To register go to: http://www.boe.ca.gov/cgi-bin/seminar.cgi?FLAG=161
Please check the BOE’s website for more upcoming seminars: http://www.boe.ca.gov/info/VirtualSeminars/seminars_inperson.htm
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California Consumers Reduce Gasoline Consumption as Pump Prices Soar 23%
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California gasoline prices jumped 23% in 2011 to an average of $3.86 as consumer consumption dropped 1.8%, according to a report released today.With rising gas prices Californians get hit not only with the pump price, but also with higher sales tax payments on gas and higher costs for all consumer goods that are produced or transported using gasoline.Even as gas consumption decreases, sales tax revenues will continue to rise because of higher prices. Cutting the sales tax, already the highest in the nation, would go a long way to helping consumers fuel their cars and purchase the goods they need to live their lives.Diesel fuel prices in California went up 25% in the fourth quarter of 2011 to $4.13 as consumption increased 2.3%. According to the BOE Economic Perspective, the overwhelming majority of diesel fuel sold for use on California roads is for commercial trucks. The diesel market is affected by the economy, imports and exports through California ports, and supply and demand conditions in residential and nonresidential construction, and agriculture.
Many Californians are struggling with high prices and taking steps to reduce their gasoline consumption. The decline in gasoline use in California began in 2005, a few years before the recession began. Gasoline use has also been affected by changes in commute patterns brought on by the recession and high unemployment rates — especially in the decline of extremely long commutes. National fuel economy standards may also affect consumption in California.
The national average price of a gallon of gasoline was up 17% in the fourth quarter of 2011 to $3.43, while diesel prices increased 23% to $3.87. According to the Energy Information Administration, the cost of crude oil, which is set on the world market, determines about 72 percent of the price of gasoline. Some energy experts agree that the best way to reduce gasoline price spikes is to decrease our dependence on foreign oil.
Energy economist Severin Borenstein, with U.C. Berkeley’s Haas School of Business, explained that oil prices drive gasoline prices up. Global factors largely determine the price of oil. However, because oil is a global commodity and demand in India, China, and elsewhere in the developing world is skyrocketing, responses by California’s consumers cutting back on gas purchases has only a minor impact on worldwide demand. U.S. oil production was up 13 percent in 2011 over 2008, but still remains less than one-tenth of the world oil market.
California gasoline and diesel fuel figures are net consumption, including audit assessments, refunds, amended and late tax returns, and the State Controller’s Office refunds. BOE is able to monitor gallons through tax receipts paid by fuel distributors in California. BOE updates the fuel reports at the end of each month.
Fuel Statistics and Reports www.boe.ca.gov/sptaxprog/spftrpts.htm
Taxable Gasoline Gallons Report: www.boe.ca.gov/sptaxprog/reports/MVF_10_Year_Report.pdf
Taxable Diesel Gallons Report: www.boe.ca.gov/sptaxprog/reports/Diesel_10_Year_Report.pdf
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Friday, March 30, 2012

Steel uses the first-in-the-state e-file kiosks at the San Diego District Office Grand opening, with San Diego County Assessor/Recorder/Clerk Ernest Dronenburg(left).
District Office 550 Deep Valley Drive, Suite 355 Rolling Hills Estates, CA 90274 Phone (310) 377-8016 Fax (310) 377-5731
Capital Office 450 N Street, MIC:77 Sacramento, CA 95814 Phone (916) 445-5713 Fax (916) 323-0546
BoardMemberSteel@boe.ca.gov
Sign up to Receive Tax Tips and Third District News!
Steel speaks with taxpayers at her Anaheim Small Business Semiar.
The Steel Summary |
March
13th— California Taxpayer’s Association Breakfast with BOE Members.
14th— Steel hosts the Grand Opening of the BOE’s new San Diego District Office and presents her Third District Taxpayers’ Champion Awards.
20th— Board of Equalization Meeting in Sacramento.
21st— Board of Equalization Meeting in Sacramento.
27th— Steel hosts Free Small Business Seminar in Anaheim co-sponsored by the City of Anaheim and the Orange County Hispanic Chamber of Commerce.
28th— Steel delivers lecture on taxes at the Korea University Alumni Association.
29th— Steel hosts Free Restaurant Tax Seminar in San Diego with the California Restaurant Association.
April
1st— Steel attends the 9th Annual Thai New Years Day Songkran Festival in Thaitown.
4th— Steel hosts Free Small Business Seminar in Encitinas with State Senator Mark Wyland, and Assemblyman Martin Garrick.
17th— Steel speaks to State Farm representatives during State Farm’s “Day at the Capitol.”
24th— Board of Equalization Meeting in Culver City.
24th— Board of Equalization 2012 Taxpayers’ Bill of Rights Hearing in Culver City.
25th— Board of Equalization Meeting in Culver City.
26th— Board of Equalization Meeting in Culver City.
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