August 26, 2014 > Counterfeit crackdown bill heads to governorÕs desk
Counterfeit crackdown bill heads to governorÕs desk
Submitted By Venus Stromberg
Board of Equalization (BOE) Chairman Jerome E. Horton recently announced that BOE-sponsored legislation to counter our stateÕs large-scale counterfeit goods suppliers is one step away from becoming law. Assembly Bill 2681 is on its way to the governorÕs desk, after the Senate voted it out on August 19.
ÒWe estimate that California is losing $8.5 billion in tax revenue to criminals operating in the underworld, and Governor BrownÕs signature on this bill will provide us another tool to help recapture the hidden revenues,Ó said Chairman Jerome E. Horton.
If AB 2681 is signed, it will enable the state to impose sales tax on those convicted of trafficking in counterfeit goods at the wholesale level. Under current law, suppliers of counterfeit goods are able to avoid paying sales tax, claiming their items are being sold to retailers who are then charged with collecting and paying taxes on sales to the BOE. This legislation will make convicted criminals at any level of the distribution chain liable for the sales tax.
For more information on other taxes and fees in California, visit www.taxes.ca.gov.