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|State of California||June 8, 2010 Election|
Greater oversight of Board operations is needed
By Edward C. StreichmanCandidate for State Board of Equalization; District 2; Republican Party
This information is provided by the candidate
Billions of dollars of tax revenue have not been collected due to tax evasion. The service station industry is a good example of this problem.The State Board of Equalization (BOE) monitors gasoline and diesel fuel gallons used through tax receipts paid by fuel distributors. However, the BOE does not maintain a record of taxable sales of gasoline and diesel fuel sold by service stations. This is a significant lack of oversight in that the BOE cannot reconcile expected taxable sales of gasoline and diesel fuel vs. reported taxable sales of these fuels as a whole for this industry. Streichman's estimation of taxable service station sales include gasoline and diesel fuel and taxable sales of mini-mart merchandise as mentioned below.
Estimated vs. Reported Taxable Service Station Sales
As startling as it may seem, the above figures indicate that the service station industry may not have reported approximately one out of four dollars (26.28%) in taxable motor vehicle fuel and mini-mart sales during this five year period.
Although the board is aware of the fact that service stations are understating their tax liabilities on returns, it is not aware of the potential magnitude of the understatement in taxable sales and sales tax. The current situation is grossly unfair to honest service station retailers throughout the state since a level playing field has not been maintained by State Board of Equalization.
The Sales and Use Tax rate will continually rise until the necessary oversight is provided by Members of the BOE.
What has caused this tax gap to occur?
How are taxable service station sales estimated?
Taxable gasoline gallons used are also net of aviation fuel. Taxable aviation fuel gallons used represents less than 1% of taxable gasoline gallons used.
Calculation for estimated taxable mini-mart sales
How can these problems with the service station industry be fixed?
Streichman knows what to do and how to do it!
The State, cities and counties desperately need this sales tax revenue. Too many jobs and programs are at stake if the tax revenue is lost due to the significant tax evasion which is occurring in the service station industry.
It is time to elect a candidate that is aware of these problems and is looking out for the best interest of the taxpayers.
Please vote for Ed Streichman on Tuesday, June 8, 2010.
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