1. Please feel free to make changes to the letter below.

Senator Jenny Oropeza Chair, Senate Committee on Revenue and Taxation State Capitol, Room 4074 Sacramento, CA. 95814 Dear Senator Oropeza, I OPPOSE AB 1848. This bill requires California companies to collect taxes from other companies with whom they do business, on behalf of the state tax collection agency. Under AB 1848, if a California company hires a vendor or other business and is later notified by the government that the vendor’s taxpayer identification number information is missing or in error, the hiring company must “withhold” 7% of any payments it makes to the vendor and remit this amount to the Franchise Tax Board. If the hiring company fails to do so, it can be liable for the taxes it did not collect from the vendor. If enacted, AB 1848 will require many companies to expend significant time, labor, and resources to create and expand multistate computer payment systems to track all of the applicable vendors and to implement withholding that is accurate and in compliance with numerous, complex tax laws and reporting requirements. For a single company, these costs could easily exceed $1 million, but only yield an amount in the low thousands annually. This means a company’s startup and ongoing implementation costs under AB 1848 could far exceed any additional generated tax revenues for several decades or more. AB 1848 attempts to impose at the state level a withholding requirement currently mandated only at the federal level. Proponents of the bill erroneously assume that since the mandate already exists at the federal level, a new, similar state level mandate will be easy. In actuality, compliance at the state level will be very costly, burdensome and complicated. This is the opposite of what federal conformity should do which is to simplify and reduce costs. Because only those businesses with California operations can be forced to comply with AB 1848, this bill burdens those operating within our state more than those operating elsewhere. This bill provides yet another disincentive to operate a business within California.

2. Type your name*

3. Type your job title

4. Type your organization name

5. Type your email or phone*

6. Click "eMAIL!" and we will send your letter!

*mandatory