The Tax Dodger Hypocrisy Part 3

:
While Avoiding Paying Their Fair Share, Chrysler and General Motors Rank Amongst the Leading Tax Delinquents in California

August 27, 2012

Californians to Close the Out of State Corporate Tax Loophole

Tax Dodger Hypocrisy Part 3, the third in a series of reports about the out-ofstate companies that are fighting attempts to close the corporate tax loophole in California, reveals that the very same companies that are trying to dodge millions of tax dollars in California are also some of the biggest delinquent taxpayers in the state. The report, which provides the results from an analysis of the tax lien database found on Lexis-Nexis and the California Board of Equalization’s list of the state’s largest delinquent taxpayers, reveals that three of the four Tax Dodgers – Chrysler, General Motors and International Paper – owe the state hundreds of thousands of dollars in unpaid taxes and that Chrysler and GM dealerships are among the biggest delinquent taxpayers in the state. The Tax Dodgers have launched an aggressive campaign to oppose efforts in California to close an out-of-state corporate tax loophole that is currently costing the state tens of thousands of jobs and $1 billion in revenues. On top of that, the loophole hurts California businesses because out-of-state companies like the Big Four Tax Dodgers (Chrysler, General Motors, Kimberly-Clark and International Paper) are able to avoid paying taxes on their income, which is what California companies are required to do. But the examples of their hypocritical position continue to add up. Tax Dodger Hypocrisy Part I revealed that before Chrysler, General Motors and KimberlyClark launched their campaign to keep the corporate tax loophole alive in California, they lobbied heavily to close the tax loophole in their home states. The report exposed the fact that in California, where the Tax Dodgers enjoy selling tens of millions of dollars in products to the state, they are perfectly content to keep their competitive advantage over California companies, but when they were on the wrong side of the equation in other states, they were first in line to fight to eliminate the loophole. Tax Dodger Hypocrisy Part II exposed a new group of tax dodger hypocrites, the twenty-nine members of the California Manufacturers and Technology Association (CMTA), an organization that is also part of the aggressive effort to fight attempts to close the loophole. The twenty-nine members of CMTA supported closing the loophole in states outside of California when it was to their advantage, but are now part of an organization doing everything it can to keep the loophole in California. CMTA’s campaign spokesman recently referred to efforts to close the loophole as “petty” yet as the Tax Dodger Hypocrisy Part II report showed, when it was to their advantage the CMTA companies characterized the issue very differently, including saying that a single sales factor was a "powerful economic development tool" and would “create more jobs.” The corporate tax loophole in California, which was created in the dead of the night in a backroom Sacramento deal with no debate or disclosure in 2009, is specifically designed so that out-of-state companies can dodge taxes, putting them

at a competitive advantage over California companies. The loophole, which gives companies an option of calculating their income based on a mixture of payroll, property, and sales, gives multi-state corporations an incentive to keep jobs and investment in other states so that they can reduce their taxes in California. Basically, the fewer Californians out-of-state-companies employ, the less they pay in taxes. To fix the loophole, many in California want to require out-of-state companies to pay taxes based on one factor -- their sales in California -- instead of giving them a choice between sales, property, and payroll. The “Mandatory Single Sales Factor” would prohibit multi-state companies from reaping profits on their sales in California while dodging their fair share of California state taxes – and it would force out-of-state companies to pay the same as in state corporations. States like Colorado, Georgia, Illinois, Indiana, Iowa, Maine, Michigan, Nebraska, New York, Oregon, South Carolina, Texas and Wisconsin have all adopted a mandatory single sales factor approach – without a loophole – to provide an incentive to companies to invest in their states. Only California and one other state – Missouri – have this glaring loophole that allows big corporations to pick and choose the way they pay their taxes. Key findings from Tax Dodger Hypocrisy Part 3 include: • According to Lexis-Nexis, at least 32 California state and county tax liens totaling $160,783 have been filed against International Paper. Since 2007, accorrding to Lexis-Nexis, there are at least 23 tax liens involving California governments against General Motors. As of May 31, 2012 four General Motors dealerships rank among the State Board of Equalization’s list of the 500 largest delinquent sales and use tax accounts. As of May 31, 2012 four California Chrysler dealerships rank among the State Board of Equalization’s list of the 500 largest delinquent sales and use tax accounts.

Today in California, all of the Tax Dodger Hypocrites are making millions of dollars off of contracts with the state and millions more by selling products and services directly to California consumers. Meanwhile, California businesses are at a huge competitive disadvantage. The Tax Dodger Hypocrites supported the loophole before they opposed it and now we have shown that they are not even paying the taxes that they currently owe in California. California taxpayers deserve clear answers from these companies about their continued hypocrisy about their efforts to oppose tax fairness in California.

California Tax Liens – International Paper
According to LexisNexis, at least 32 California state and county tax liens totaling $160,783 have been filed against International Paper. The liens are shown in the chart below. LexisNexis does not have record of a release for 26 of the county tax liens, meaning International Paper may currently owe California counties $83,323 in back taxes.
Debtor International Paper International Paper Company International Paper International Paper Co International Paper Company & NMHG Financial Services Inc 7 321 International Paper Co International Paper Co International Paper Company International Paper Co International Paper Company & Xpedx International Paper Company International Paper Company International Paper Co International Paper Co International Paper International Paper International Co International Co International Co International Co Paper Paper Paper Paper Creditor Los Angeles County State of California San Bernardino County Riverside County Kings County Los Angeles County Los Angeles County Los Angeles County Los Angeles County San Mateo County Orange County Tulare County Los Angeles County Los Angeles County Fresno County San Bernardino County Riverside County Santa Clara County Santa Clara County Shasta County Filing Date 1/19/2012 8/4/2011 8/3/2011 1/19/2011 Amount $1,814 $14,837 $250 $2,461 Filing Type County Tax Lien State Tax Lien County Tax Lien County Tax Lien ReleaseFiled? Yes Yes No No

10/12/2010

$2,612

County Tax Lien

Yes

11/30/2009 12/5/2008 12/11/2007 11/29/2005 11/21/2005 10/11/2005 9/20/2005 12/20/2004 8/17/2004 10/30/2003 6/17/2002 1/18/2001 11/3/2000 11/3/2000 3/31/2000

$380 $420 $528 $8,550 $499 $198 $51,141 $8,952 $462 $1,006 $111 $2,461 $1,127 $105 $421

County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien

No No No No No No Yes No No No No No No No Yes

Debtor International Paper Co International Paper & West Mar Distributors International Paper Comp International Paper Co Lessee International Paper Co Container International Paper Credit Corp International Paper Credit Corp International Paper Credit Corp & Kirsh and Petry International Paper and Plastic International Paper Credit Corp International Paper Credit Corp International Paper Credit Corp & Kirsh and Petry TOTAL

Creditor Santa Cruz County San Diego County Los Angeles County Los Angeles County Los Angeles County Santa Clara County Santa Clara County Santa Clara County Los Angeles County Santa Clara County Santa Clara County Santa Clara County

Filing Date 2/18/1998 10/18/1994 12/7/2005 12/10/1997 2/26/1993 7/27/2009 7/27/2009 7/27/2009 5/24/2001 7/14/2000 7/14/2000 7/14/2000

Amount $6,635 $22 $30,557 $226 $1,685 $6,349 $1,198 $5,748 $130 $4,724 $878 $4,296 $160,783

Filing Type County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien

ReleaseFiled? Yes No No No No No No No No No No No

GM Tax Liens
Since 2007, there are 23 tax liens involving California governments against General Motors listed on Lexis-Nexis, totaling $30,879. For most of these liens, Lexis-Nexis does not show a release, which indicates that they may still be unpaid.
Debtor General Motors LLC, Courtesy Oldsmobile General Motors LLC, Courtesy Oldsmobile General Motors Corp. General Motors Corp. General Motors LLC General Motors Corp, Affiliated Comp Serv Inv General Motors Corp Creditor Merced County Merced County Los Angeles County Los Angeles County Los Angeles County Los Angeles County Los Angeles County Filing Date 2/28/12 2/28/12 1/17/12 1/17/12 1/17/12 9/14/11 9/14/11 Amount $108 $90 $234 $1,245 $4,606 $510 $167 Filing Type County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien ReleaseFiled? Yes Yes No No No No No

Debtor General Motors Corp General Motors Corp

Creditor Yolo County San Bernardino County San Bernardino County San Bernardino County Los Angeles County Los Angeles County Santa Clara County Los Angeles County Los Angeles County Los Angeles County Los Angeles County San Bernardino County Los Angeles County Los Angeles County Los Angeles County San Bernardino County

Filing Date 11/19/10 11/18/10

Amount $10,367 $522

Filing Type County Tax Lien County Tax Lien

ReleaseFiled? No No

General Motors Corp

11/18/10

$904

County Tax Lien

No

General Motors Corp General Motors Corp General Motors Corp, Affiliated Com Serv Inv General Motors Corporation General Motors Corp General Motors Corp General Motors Corp General Motors Corp General Motors Corp General Motors Corporation General Motors Corp General Motors Corp General Motors Corp TOTAL

11/18/10 9/15/10 9/15/10 5/7/10 11/24/09 11/24/09 11/24/09 3/13/09 11/19/2008 11/14/08 12/10/07 12/10/07 11/19/07

$1,373 $163 $482 $1,471 $505 $339 $431 $3,979 $577 $160 $431 $2,025 $190 $30,879

County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien County Tax Lien

No No No No No No No No No No No No No

GM Dealerships Among Largest Tax Delinquents
As of August 26, 2012 four General Motors dealerships rank among the State Board of Equalization’s list of the 500 largest delinquent sales and use tax accounts. While the dealerships are not owned by General Motors, they sell General Motors cars in California, helping the company profit off of California consumers. The dealerships are shown in the chart below.

Name Jack Du Beau Champ CHV Buick Inc. DBA Champion Chevrolet Buick Los Gatos Chevrolet, LLC

Address 1200 N St Firebaugh, CA 93622-2312

First Lien Date 1/13/2005

Balance $551,895.00

Paid --

Greiner Poway 2/10/2011 $487,843.00 Inc. DBA Greiner Buick Pontiac GMC Poway Mazzei Pontiac3800 Century 5/5/2009 $1,321,298.00 Cadillac Co. Ct, Pittsburgh, DBA Mazzei CA 94565Pont-Cad-Ols7122 Buic-GMC Trk Source: California Board of Equalization, http://www.boe.ca.gov/cgi-bin/deliq.cgi

PO Box 1778, Aptos, CA 95814-1743 13811 Poway Rd, Poway, CA 92064-4855

6/11/2009

$437,557.00

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--

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Chrysler Tax Liens
Since 2007, there have been three tax liens involving California governments against Chrysler listed on Lexis-Nexis.
Debtor Chrysler Corp. Management Chrysler Motors LLC Chrysler Corp. Creditor Employment Development Dept Sonoma County San Diego County Filing Date 8/13/10 7/6/10 10/26/09 Amount Unknown $457 $189 Filing Type State Filing County Tax Lien County Tax Lien ReleaseFiled? Yes Yes No

Chrysler Dealerships Among Largest Sales & Use Tax Delinquents
As of August 26, 2012 four California Chrysler dealerships rank among the State Board of Equalization’s list of the 500 largest delinquent sales and use tax accounts. While the dealerships are not owned by Chrysler, they sell Chrysler cars in California, helping the company profit off of California consumers. The dealerships are shown in the chart below.
Rank Registered Doing Business City/State 1st Lien Balance

Business Name Valley Dodge, 106 Inc Leer Automotive 194 Group, Inc. C & B Chrysler197 Jeep, Inc. Brusa/Lynch 263 Enterprises, Inc. Source: California State

As Big Valley Chrysler Jeep Dodge Manteca Dodge

Date Van Nuys, CA Manteca, CA 6/23/2009 4/24/2008 $1,298,210 $952,765

Southwest Chrysler Norco, CA 2/8/2008 $932,782 Jeep Chrysler Plymouth Shingle 2/19/2009 $745,818 Dodge Linc Merc Springs, CA Board of Equalization, http://www.boe.ca.gov/cgi-bin/deliq.cgi

Paid for by Yes on 39 Californians to Close the Out-of-State Corporate Tax Loophole. Major Funding by Thomas F. Steyer and Californians for Clean Energy and Jobs, sponsored by environmental organizations and business for clean energy and jobs.

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