Service fee to offset the high cost of operating in CA (hotels, wage)

[expatCA]

Originally Posted by Tulemutt

Explain?

Since I own several CA corporations as well as have business in several other States, the cost of doing business is wayyy above what it costs in the other States I have experience in.


A simple example. In CA a Fed law about waste Water flowing to outside the building, potentially contaminating water exists. In CA even with a business where no such exposure exists it cost $1600.00 dollars to file and then each year a charge is made to re file. In the other States I did not have to file at all if no exposure.


CA also just passed a law that even if you have no presence as a business in CA, if you have an independent sales contractor (Another company), you must pay sales tax on all sales in CA because of that. No other State I have business in charges that.


There are many costs unique to CA and where other States have similar costs they are usually higher in CA.

[2sleepy]

Originally Posted by expatCA

Since I own several CA corporations as well as have business in several other States, the cost of doing business is wayyy above what it costs in the other States I have experience in.


A simple example. In CA a Fed law about waste Water flowing to outside the building, potentially contaminating water exists. In CA even with a business where no such exposure exists it cost $1600.00 dollars to file and then each year a charge is made to re file. In the other States I did not have to file at all if no exposure.

CA also just passed a law that even if you have no presence as a business in CA, if you have an independent sales contractor (Another company), you must pay sales tax on all sales in CA because of that. No other State I have business in charges that.


There are many costs unique to CA and where other States have similar costs they are usually higher in CA.

It's not unique to California,several states have adopted the same or similar laws. The legality of collecting sales tax from out of state sellers with no nexus was established in South Dakota vs. Wayfair. Here's a state by state list. https://blog.taxjar.com/states-sales...ck-thru-nexus/

Several years ago I worked for a software company and for California clients we had to electronically send pdf's of manuals, we couldn't give them printed manuals. The company also installed the software remotely and they didn't receive any media, i.e. usb drive or discs that would allow the reinstall of the program, they had to download it from the company's ftp server. The CEO got audited by FTB a few times but he always came out ok. FTB are aggressive little boogers, they would audit us and contact our clients and ask if they had received a copy of the software on disc or any printed manuals.

But it looks like those those sales are now subject to sales tax too.

[expatCA]

Originally Posted by 2sleepy

It's not unique to California,several states have adopted the same or similar laws. The legality of collecting sales tax from out of state sellers with no nexus was established in South Dakota vs. Wayfair. Here's a state by state list. https://blog.taxjar.com/states-sales...ck-thru-nexus/

Several years ago I worked for a software company and for California clients we had to electronically send pdf's of manuals, we couldn't give them printed manuals. The company also installed the software remotely and they didn't receive any media, i.e. usb drive or discs that would allow the reinstall of the program, they had to download it from the company's ftp server. The CEO got audited by FTB a few times but he always came out ok. FTB are aggressive little boogers, they would audit us and contact our clients and ask if they had received a copy of the software on disc or any printed manuals.

But it looks like those those sales are now subject to sales tax too.

Yes it is not unique to CA. It is more the total amount of regulations that exist in CA that increases the cost of business. I have had offices of one of my companies in 5 States and CA has the highest overall cost.


Uniquely I have never been audited by any State I had an office in, including CA, as I have always made sure to do what was asked. I did have one State make such a claim, but it was easy to prove it was false. My biggest complaint with CA is not simply the cost but trying to ever get to speak with someone on the phone. Nearly impossible. In one case I found a advocate group that did give me a number that went directly to a person who worked for the State and I got things settled. This is at the State level. The CA cities and Counties I have worked with have been far easier to speak with and very helpful.

[Burkmere]

Originally Posted by davidt1

I don't know if this is old news. Just ordered a pizza online and saw a 3% fee added to offset the high cost of operating in CA. I guess except for government employees, everyone else is squeezed in the "world's fifth largest economy."

LOL. And it's only going to get worse as Gavin struggles to revive a failing state.

[Burkmere]

Originally Posted by 2sleepy

I won't eat at a restaurant that has a service charge, and if I don't notice it on the menu and end up paying it I review them on yelp, give them a 1 star rating and mention the service charge as being the reason for the bad review. There are better ways to cover increased costs than with a silly 'service charge'. and printing menus is a miniscule part of the COGS in restaurants. And before I tip I ask if tipping is pooled with back of house staff, if not and service was good I leave a nominal tip of $5 or less, if it's pooled I leave a tip of 10-15%

Wait, so you don't like Ca after all? I'm confused. Always a service charge in CA. Please explain. Just to memtion only ONE of the many charges in CA that don't exist in other states.

[SOON2BNSURPRISE]

Originally Posted by Tulemutt

Anytime costs go up for business anywhere the costs get past on to the customer. That is the very definition of business.

Yea, I was thinking, who would the business owner pass the costs on to.

[Tulemutt]

Originally Posted by SOON2BNSURPRISE

Yea, I was thinking, who would the business owner pass the costs on to.

Roger that. Maybe they think business owners will just eat it and live as long as they can off their savings until broke?

[CaliforniaPlaya]

Originally Posted by Burkmere

LOL. And it's only going to get worse as Gavin struggles to revive a failing state.

So lets all try to help out our failing state and buy more pizza!

[expatCA]

Originally Posted by CaliforniaPlaya

So lets all try to help out our failing state and buy more pizza!

Order one online and have it shipped to me. That will help the State.

[Tominftl]

Originally Posted by V8 Vega

That started with the $15 minimum wage.

Yes, sounds like Trump economics. let them eat cake and pay them below the minimum wage. Who cares how they are going to support themselves forget about a family.....