California Used Vehicle Dealer Education
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We have created a complete starter kit of dealer forms.

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sales contract in english & spanish
buyers guide in english & spanish
car buyers bill of rights option form
car buyers insurance form
dealer not for sale sticker

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dmv complaint form
dmv records inquiry form
dmv salesperson application
dmv salesperson handbook

used car dealer & autobroker application checklist
property use verification form
postal service verification form
statement of lost plates form
dmv director as agent of service form
auto broker log
dealer modification form
dealer title correction form
dealer delivery form
dmv car dealer bond form

dmv non-operation form
dmv error statement form
dmv dealer transmittal form
dmv traffic accident report form

dmv permanent trailer identification application
dmv statement of facts form
dmv gross vehicle weight declaration form
dmv license fee refund request form
dmv replacement license plate form
dmv disabled placard request form
dmv vehicle verification form
dmv title application form
dmv duplicate title request form
dmv change of address form
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January Dealer Renewal Notices

January 2010 dealer renewal notifications were not issued.
The error has been identified and corrected.
Renewal notifications will be issued as soon as possible.

Penalty fees for all January dealer licenses renewals will be waived; however, dealers must still renew within the 30-day renewal grace period per California Vehicle Code (CVC) §11717(c).

License Renewal Procedures
Dealers requiring renewal must:

Visit the department’s website for licensing information at: www.dmv.ca.gov/vehindustry/ol/dealer.htm.

Complete the Renewal Application (OL 45) form available at: www.dmv.ca.gov/forms/ol/ol45.htm.

Review the mandatory dealer education requirements in the Vehicle Industry Registration Procedures Manual available at: www.dmv.ca.gov/pubs/reg_hdbk_pdf/toc.htm.

Access dealer education providers at: www.dmv.ca.gov/vehindustry/ol/dlr_edu_provider.htm.

Renew dealer license plates using the Application for License Plates, Stickers, Registration Card (OL 22) available at: www.dmv.ca.gov/forms/ol/ol22.htm.

Contact their local inspector prior to license renewal if they have added a branch office or changed a location, firm name, or ownership.

Mail the renewal application and accompanying forms to:
Department of Motor Vehicles
Occupational Licensing Section
PO Box 932342 MS L224
Sacramento, CA 94232-3420

Additional Information

Dealers with license plates that are lost, stolen, or need to be surrendered, must complete a Statement of Lost, Stolen, or Surrendered Special Plates (OL 247) available at: www.dmv.ca.gov/forms/ol/ol247.htm.

Dealer license renewal status is updated daily and can be verified on the department’s website at: https://mv.dmv.ca.gov/olinq2/welcome.do.

Background

Normally, courtesy dealer license renewal notices are sent in advance. Due to an error identified, January 2010 notices did not generate.

Distribution

Notification that this memo is available online at www.dmv.ca.gov/pubs/olin/olin.htm
was made via e-mail alert service in January 2010 to the following:

Dealers

Contact

Questions regarding this memo may be directed to the Occupational Licensing Firms Unit, at (916) 229-3126.

MARY GARCIA, DMV Chief Occupational Licensing

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_________________________
OPINION of EDMUND G. BROWN JR. Attorney General DIANE E. EISENBERG Deputy Attorney General
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________________________________________________________________________
TO BE PUBLISHED IN THE OFFICIAL REPORTS
OFFICE OF THE ATTORNEY GENERAL
State of California
EDMUND G. BROWN JR.
Attorney General
No. 08-804
December 31, 2009

THE HONORABLE NOREEN EVANS, MEMBER OF THE STATE ASSEMBLY, has requested an opinion on the following question:
Is the single document requirement for automobile sales contracts satisfied if the document consists of multiple pages that are attached to each other and integrated by means such as inclusive sequential page numbering (e.g., “1 of 4,” “2 of 4,” etc.)?

CONCLUSION
The single document requirement for automobile sales contracts is satisfied if the document consists of multiple pages that are attached to each other and integrated by means such as inclusive sequential page numbering (e.g., “1 of 4,” “2 of 4,” etc.).

ANALYSIS Under California’s Automobile Sales Finance Act (ASFA),

1 automobile sales contracts must contain certain terms and disclosures

2 for the protection of consumers.

3 In addition, certain provisions of such contracts are required to be prominently displayed in fonts of specified size, and in specified locations and sequences, again for the protection of consumers. On top of that, regulated sales contracts are required to be reproduced as a “single document,”

4 so that the necessary terms and notices may not be concealed from consumers by being shunted to an unseen appendix. The extensive formalities and requirements are mandatory,

5 and a contract that does not substantially conform to the requirements is unenforceable.

6 1 Civ. Code §§ 2981–2984.6. 2 Civil Code section 2982 provides that a conditional sale contract subject to the ASFA must contain disclosures mandated by federal Regulation Z, 12 C.F.R. §§ 226.1– 226.48 (2009). Regulation Z implements the Truth in Lending Act, which is found at 15 U.S.C. §§ 1601–1667f. 3 See, e.g,. Cerra v. Blackstone, 172 Cal. App. 3d 604, 608 (1985) (“The legislative purpose in enacting the [ASFA] was to provide more comprehensive protection for the unsophisticated motor vehicle consumer.”). 4 Civ. Code § 2981.9 (part of the ASFA).
Although our analysis focuses on automobile sales contracts, we note that the same language appears in other consumer sales statutes, and we have no reason to believe that our analysis would not apply to them as well. See Civ. Code § 2985.8 (part of the Vehicle Leasing Act, Civ. Code §§ 2985.7–2994); Civ. Code § 1803.2 (part of the California Retail Installment Sales Act). 5 Civ. Code § 2982(m) states that the required terms “may” be printed according to the specified regulations.

However, experts in the field and judicial decisions uniformly construe these consumer-protection rules as mandatory. See, e.g., Justice William Masterson (Retired), Justice Elizabeth Baron (Retired) & Louise LaMothe, California Civil Practice Business Litigation, § 58:11 (Thomson Reuters 2009); Cynthia L. Fatica, California Transactions Forms: Business Transactions Vol. 5, § 34:33 (Thomson Reuters 2009); Kunert v. Mission Fin. Serv. Corp., 110 Cal. App. 4th 242, 248 (2003). 6 See Kunert v. Mission Fin. Serv. Corp., 110 Cal. App. 4t h at 248. 2 08-804

Taking all of the rules into account, an automobile sales contract must now be approximately 24 inches long (printed on both sides) in order to contain all of the required provisions in their required sizes. This is an unwieldy size for a business document, and incompatible with standard office printing and reproduction machines. This incompatibility leads to significant trouble and expense for automobile dealers, as well as for those consumers who need to make or transmit copies of their sales contracts.

We have been asked to determine whether the single-document rule would be satisfied if the document were to consist of multiple pages that are attached to each other and are properly integrated by appropriate means, such as inclusive sequential page numbering that presents the page numbers as “1 of 4,” “2 of 4,” and so forth. In order to answer this question, we apply well established rules of statutory construction, looking first at the plain language of the relevant statutes with the aim of ascertaining the Legislature’s intent.

7 To that end, we turn to Civil Code section 2981.9, which sets forth some of the requirements for conditional sale contracts governed by the Automobile Sales Finance Act: Every conditional sale contract subject to this chapter shall be in writing and, if printed, shall be printed in type no smaller than 6-point, and shall contain in a single document all of the agreements of the buyer and seller with respect to the total cost and the terms of payment for the motor vehicle, including any promissory notes or any other evidences of indebtedness.

8 Orr v. City of Stockton, 150 Cal. App. 4th 622, 629 (2007); see also Dyna-Med, Inc. v. Fair Empl. & Hous. Commn., 43 Cal. 3d 1379, 1386-1387 (1987).
8 Emphasis added. See also Civ. Code § 2985.8(a) (“Every lease contract shall be in writing and the print portion of the contract shall be printed in at least 8-point type and shall contain in a single document all of the agreements of the lessor and lessee with respect to the obligations of each party.”); Civ. Code § 1803.2 (“[E]very retail installment contract shall be contained in a single document that shall contain . . . [t]he entire agreement of the parties . . .”)

There is no definition in the ASFA of the term “single document.” Nor do we find the term defined in other statutory schemes. Therefore, we look to the usual and ordinary meaning of the words, bearing in mind the context in which they are used.

9 The most relevant definition of “single” in this context is “a separate individual member of a large class of similar or identical objects.”

10 The most relevant definition of “document” is “an original or official paper relied upon as the basis, proof, or support of something.”

11 Thus, the term “single document” means a separate or individual official paper. Nothing in this definition suggests that the entirety of the document must be contained on one page or on one sheet of paper. There is also no such suggestion in the few cases arising under consumer protection laws in which the rule is discussed. In Kroupa v. Sunrise Ford, the Court of Appeal decided that when a consumer traded in two vehicles, received a rebate from the dealer, and entered into a vehicle lease, all as part of the same negotiation, the three occurrences constituted a single transaction that should have been memorialized in a single document.

12 Other documents contained information about the rebate and the trade-ins, which affected the financing terms of the lease, but the lease did not. The absence of a single document that contained all the parties’ agreements with respect to their obligations was held to constitute a violation of the single document requirement.

13 The Court did not state, however, that the required information all had to be contained on one sheet of paper. Earlier, in Morgan v. Reasor Corp., the California Supreme Court held that the single document requirement in the Unruh Act was not met where an installment contract and a promissory note were not physically attached to each other.

14 Implicit in this holding is the notion that separate pages physically attached to each other may constitute a single document.15 9 See Dyna-Med, 43 Cal. 3d at 1387.

10 Webster’s Third New International Dictionary of the English Language
(Unabridged) 2123 (Philip Babcock Gove, ed. in chief, Merriam-Webster Inc. 2002). 11 Id. at 666. 12 Kroupa v. Sunrise Ford, 77 Cal. App. 4th 835, 843 (1999) (as modified, Jan. 20, 2000). 13 Id. 14 Morgan v. Reasor Corp., 69 Cal. 2d 881, 892 (1968).

15 The holding in Morgan is also consistent with a prior opinion issued by this

Currently, the federal Truth in Lending Act (provisions of which are incorporated by reference into the ASFA

16 does not include a single document requirement.

17 But case law construing a previous version of the Truth in Lending Act suggests that such a requirement was understood to be part of the earlier law, and some of these cases describe the requirement. For example, in finding a disclosure statement that simply said “refer to note” to be inadequate, the Ninth Circuit Court of Appeals stated: We think that this provision [former 15 U.S.C. § 1639(b)] means that the required disclosures can be made by including all required information in the instrument of indebtedness, not that some of the information can be disclosed in the disclosure statement while other information is disclosed in another document. The whole purpose of the Truth in Lending Act is to provide meaningful disclosure to a borrower. Such a goal is not met if the borrower must examine several documents to learn the terms of the loan agreement.

18 It is apparent that these authorities deem the purpose of the single document rule to be the facilitation of the consumer’s review of all of the parties’ agreements before the consumer signs the sale or lease contract, so that the consumer has complete and accurate information. The rule also helps to avert later disputes about the terms of the parties’ final agreement.

While a single-sheet document, which forecloses the possibility of pages becoming detached, may serve these objectives well, the single document rule does not require that the document consist of only one sheet of paper.

In 45 Ops.Cal.Atty.Gen. 8 (1965), we assumed without discussion that a contract entered into pursuant to the Unruh Act would be violated if “a deed of trust that was attached as part of the contract were detached from the rest of the document by means of tearing along perforations or removal of staples.” Id. at n. 9. 16 See Civ. Code § 2982.

17 Under federal Regulations M and Z, disclosures must be made “clearly and conspicuously in writing, in a form that the consumer may keep.” See 12 C.F.R. § 213.3 (Reg. M); 12 C.F.R. §§ 226.5, 226.17, 226.31 (Reg. Z). 18 Ljepava v. M. L. S. C. Prop. Inc., 511 F.2d 935, 942 (9th Cir. 1975). 5 08-804

Our conclusion is bolstered by a recent decision of the California Supreme Court, Alan v. American Honda Motor Co., Inc., in which the Court construed a particular rule of court to include a single document requirement, even though the term “single document” does not appear in the language of the rule.

19 As the Court stated, [W]e see no reason why the clerk could not satisfy the single-document requirement by attaching a certificate of mailing to the file-stamped judgment or appealable order, or to a document entitled “Notice of Entry.” Obviously a document can have multiple pages. But the rule does not require litigants to glean the required information from multiple documents or to guess, at their peril, whether such documents in combination trigger the duty to file a notice of appeal.

20 A rule of court is not drafted by the Legislature, and the rule at issue in the Alan case pertains to litigant protection, rather than consumer protection in the commercial arena. We nonetheless find it significant that, in applying ordinary principles of statutory construction to the rule ,

21 the Court’s view of the function of the single document requirement was the same as that of the Ninth Circuit in Morgan. And we find both cases relevant to, as well as consistent with, our understanding of the ordinary meaning of the term “single document.” Accordingly, we conclude that the single document requirement for automobile sales contracts is satisfied if the document consists of multiple pages that are attached to each other and integrated by means such as inclusive sequential page numbering (e.g., “1 of 4”, “2 of 4”, etc.). *****

19 Alan v. Am. Honda Motor Co., Inc., 40 Cal. 4th 894, 903–905 (2007) (holding that the phrase “a document” in Cal. Rule of Court 8.104, which governs the timeliness of appeals in specified circumstances, means “a single, self-sufficient document satisfying all of the rule’s conditions”). 20 Id. at 905 (emphasis added). 21 Id. at 902 (ordinary principles of statutory construction govern interpretation of the Cal. Rules of Court). 6 08-804

http://ag.ca.gov/cms_attachments/opinions/pdfs/o546_08-804.pdf

A
ANTIQUE – a general description of an object having special value because of it’s age (usually more than 100years old) in automotive terms it tends to refer to a vehicle that was built prior to 1915.
ALL WEATHER – a term used in the twenties and thirties to denote a four door convertible sedan.

B
BAQUET- the literal translation is ‘bath tub’. It refers to cars at the beginning of the century in Europe with two rows of raised seats (single seats or divans) similar to those used in turn of the century horse drawn carriages. Baquets were generally without front doors, a top or a windshield. In the United States the term ‘touring’ was often used. Also see Phaeton
BARCHETTA – an open top car dedicated to racing without doors or a top and with uniform and streamlined bodywork. It could have one or two separate seats.
BAROUCHE- a carriage term very rarely used for automobiles. The driver sat in an open front seat with two couples facing each other inside a closed cabin. There was a folding top over the rear seat.
BATEAU – The shape of the rear end of open-topped racers at the beginning of the century, which looked like the hull of a boat. Also see Boattail.
BERLINE – a sedan
BOATTAIL – the tapered form of the rear-end. The term literally describes the shape of the vehicle tail, which resembled the bow of a boat. Popular in racing. Also see Bateau
BONNET – English term for panel that covers the engine. Americans call it a hood.
BOOT – English term for panel that covers the rear luggage compartment. Americans call it a trunk.
BROUGHAM – in early motoring this broad term signified a closed car for two or four persons. In later forms it was often found to describe a car with an open front driver’s compartment. When coupled with sharp lines and flat surfaces it may be called a ‘Panel Brougham’.
BULLNOSE – a term in use in England during the 1920′s to indicate a type of radiator, which supposedly resembled the nose of a bull! E.g.: Bull-nose Morris.
BUSINESS COUPE – a simple two-door coupe without a rumble seat, such as used by doctors, bankers and salesman etc. Everyday transport for the middleclass.

C
CABRIOLET – generally this means a convertible car with windows. However, this term has changed meaning significantly over the years and can even mean different things in different countries. During the 1920′s and 30′s in Europe it meant an open car with a top, two doors and four seats, which was most often derived from a sedan. The equivalent in Great Britain was called a drop-head coupe while the English used the term Cabriolet to mean a four door open top car. Concurrently in the United States, the term used was Convertible coupe. Today Cabriolet describes open top cars derived from a sedan or coupe. It could also be understood to mean an open top car with two rows of seats with just two doors. Although in reality it can have any number of doors and windows.
CHUMMY – In England from 1920 and up, a chummy was an open top car. The vehicle was usually a 2+2 i.e.: two full-sized seats up front with two small ‘occasional’ seats in the rear.
CLASSIC – according to the Classic Car Club of America this term refers only to specific or important marques built between 1925 and 1942 (with certain post-war exceptions). It is however applied today by owners of almost any collectible car more that is more than 25 years old.
CLUB COUPE – a two-door closed car with a rear seat.
COACH-LINE – a painted accent line on the body of a car. Modern equivalent is the pinstripe.
CONCOURS (d’Elegance) – a gathering or show of the elegant.
CONVERTIBLE – In short, a car with a folding top and windows! In the US from 1927 on, the term was used to mean a car with a soft, retractable top was hooked permanently to the bodywork, and therefore not removable like a roadster’s was. Other requisites were side windows that opened and the absence of any framework above the waist of the car apart from the windshield. The most common example of the was therefore called a convertible coupe these had two doors, whilst cars with four doors were called convertible sedans. In both cases four or five people could be seated.
CONVERTIBLE ROADSTER – a convertible is an open car with windows; a roadster is an open car without windows, hence a term which contradicts itself. Used by Lincoln, Chrysler and others about 1930 to emphasize sportiness.
CONVERTIBLE VICTORIA – a four passenger two door two-window cabriolet.
COUPE – a closed car with two doors for two or three people and a roofline that generally curves at the back. May also have a rudimentary rear seat in which case it is usually called a Club Coupe.
COUPE CHAUFFEUR – chauffeur driven car with passengers fully enclosed and the chauffeur exposed. Body has a blind rear quarter.
COUPE DeVILLE – or “town coupe”, applied imaginatively to various body styles Usually a four passenger two-door car with a permanently closed roof over the rear seats and a removable top covering the front seats. See Sedanca
COUPELET – a term used especially by Ford to describe a Model T two seater Cabriolet.
COUPE LIMOUSINE – chauffeur driven car with the passengers fully enclosed and the chauffeur exposed. Body has rear quarter windows.
CYCLE FENDERS – usually a front and sometimes a rear fender similar to that used on a motorcycle which follows the curvature of the wheel.

D
DeVILLE EXTENSION – a sliding roof over the front seat with side arms that folded back into the remaining roof thus producing a Sedanca configuration in metal rather than the usual fabric.
DICKEY – or Rumble seat. An extra external seat that could be accessed by lifting a forward-opening ‘trunk-like’ lid in the rear of the car.
DROPHEAD COUPE – British term for the equivalent of the American convertible, or the European Cabriolet.
DUAL COWL – a design of touring car, which saw the cab, divided into two compartments, front and back. Separated with a rear windshield mounted on a folding cowl, which covers part of the rear compartment.

E
ESTATE CAR – a station wagon, or four-door, four passenger car with an extended roof line plus a gate or hatch in the rear for increased cargo capacity.

F
FAUX CABRIOLET – a fixed head coupe made to resemble a cabriolet.
FENCERS MASK – The term used to describe a type of radiator grille design from the 1930′s which resembled a fencers mask for it’s shape and fine weave of the grille.
FIXED HEAD COUPE – a closed coupe.
FORDOR – Ford’s name for a four door sedan.

G
GOUTTE d’EAU – a body with a ‘tear drop’ design, flowing down to the rear.
GOVERNOR – a device used with the carburetor to restrict maximum engine speed.
GRAN TURISMO (GT) – grand touring
GP – Grand Prix or Great Prize.
GT – Grand Touring

H
HARD TOP – a removable top to replace the soft-top. It typically made from fiberglass, although sometime steel and usually painted the same color as the body of the car.
HOOD – American terminology for the sheet metal panel covering the engine.
HOOD – British terminology a convertibles soft-top.
HORSELESS CARRIAGE – a term defined by the Horseless Carriage Club of America applying to cars built before 1915 (See also Antique)

I J K

L
LANDAU- a partially opened limousine. The open part was usually in the front where the driver sat.
LANDAULET – a Landau limousine in which the section over the rear seats also opens or folds down.
LIGHT – a small window as in sidelight, quarterlight, skylight etc.
LIMOUSINE – a chauffeured sedan often with a longer wheelbase and usually with a division between the driver and the passengers. The rear compartment had luxurious features with controls for heating, radio and opening and closing the glass or wood division.

M
MARQUE – a make or brand of car.
MM – Mille Miglia, a 1000 mile Italian road race from 1927 to 1957.
MOTHER-IN-LAW SEAT – a single sideways-facing rear seat. Usually found in coupes or cabriolets.

N

O
OPERA COUPE – a two door closed car with a small folding seat beside the driver. This allowed easy passage to a rear seat for two, usually offset to the right in left-hand drive cars.

P
PANEL BROUGHAM – see BROUGHAM
PHAETON – it means opened top car with four seats. French term taken from the Greek “Phaeton” who drove the chariot of his sun-god father, Helios. A small four door open touring car.

Q
QUARTER WINDOW or QUARTER LIGHT- the small triangular side window to the rear most of the rear door glass, and foremost of the front door main glass.

R
RAGTOP – See soft-top
RIB – a bow made of metal or wood that makes up part of the rigid or semi-rigid frame of a convertible top.
ROADSTER – The term roadster has had several meanings depending on the origin and period. One thing everyone agrees on is that they did not have a top. Most recently the term has meant sportscar, generally it’s accepted to mean, small and powerful two-seater sportscar.
ROLL BAR – A metal bar fashioned in such a way to protect the driver in the event the car rolls over.
RUNABOUT – A small light two seater. Runabout was mainly an American term to indicate small open car, very basic and cheap. Predecessor to the Roadster.

S
SEDANCA – A type of early body design in which the top extended for a quarter of a circle and covered only the passengers in the rear seats.
SHOOTING BRAKE – This is a European term used typically to describe a car that is a cross between a two-door sports coupe and an estate car. Made popular by the well heeled as they wanted a vehicle to move larger than normal amounts of cargo (even dogs when grouse shooting) without having to resort to a dowdy estate car or station wagon!
SPORTIF – a very tight or narrow type of Phaeton.
SPORT COUPE – a closed coupe with a cloth top and sometimes landau irons resembling a convertible.
SPYDER – a light two-seater roadster (also called a Spider). The European term for the English Roadster.
SS – Super Sport
STATION WAGON – a utility car built of wood, typically with four doors.
SUBURBAN – a seven passenger limousine
SUICIDE DOOR- a rear hinged door, typically for the front seat. At speed any chance opening would cause the door to whip backward with great force.
SUPERLEGGERA – super light

T
TARGA – a coupe with a removable roof panel (or panels) from above the heads of the front seat occupants.
THREE POSITION COUPE – A Coupe de Ville which may be presented as a fully closed coupe, a deVille Coupe with the front section open or a fully collapsible convertible.
TONNEAU – the rear compartment of a car body, usually an open touring body. i.e. Phaeton
TONNEAU COVER – soft cover used on parked roadsters to protect the cab from rain when the top is down.
TORPEDO – a long wheelbase very smooth touring car with flat panel’s low doors and sides that offered no protection from the weather. They succeeded Tourers and Phaetons.
TOURING CAR – a four door open car, four seats and without windows. US equivalent of the European Baquet.
TOWN CABRIOLET – A town car in which the covered rear section converts to an open car.
TOWN CAR – a chauffeur driven car with the passengers fully enclosed and the chauffeur exposed. Also known as a Sedanca de Ville or Town Brougham
TUDOR SEDAN – Ford’s term for a two door.
TWIN SIX – Packard’s first twelve-cylinder car introduced in late 1915 and produced until 1920. When Packard reintroduced the new V12 in 1932, the term was reused for that first year only.

U
UNDERSLUNG – an automobile whose frame passed underneath the axles. Used primarily by the American Motor Company of Indianapolis from 1907 to 1914

V
VICTORIA – a close coupled two-door sedan or an enlarged coupe with a rear seat. Also a four door open car with folding top over the rear seat only.
VINTAGE – formerly a term describing cars built between 1915 and 1925 but now used broadly, especially in England, to include cars manufactured between 1920 and 1942.
VIS A VIS – a term used generally to describe a seating arrangement where the passengers sit facing each other.

W
WEYMANN – a patented body in which wooden frame members were joined by metal strips preventing the wood from touching and squeaking.
WINDOW STRAP – a strap attached to the base of a window, which passed inside the body up to the sill, and into the interior of the car. It could be used to pull the window up. Holes in the strap could be buckled against an interior pin to hold the window at various elevations.
WINDSCREEN – English term for windshield
WING – English term for fender
WINTER FRONT – a patented name for a shuttered radiator cover by the Pines Co., which could be opened and closed to regulate engine temperature.
WOODY – a motor vehicle incorporating natural finished wood for structure and all exposed parts of the body. The term has been loosely applied to any car, which uses wood coverings, even over metal.

XYZ

A lot can happen in the auto dealers’ insurance market

By Dave Kaiser

Even with a wave of consolidation through the industry, the number of new and used auto dealerships in the U.S. is close to 100,000, meaning most independent agents have multiple dealers in their own backyards.

“We have been able to find coverage for a variety of auto dealers, from a small mom and pop used car dealer to a dealer specializing in fire trucks or ambulances,” says Jon M. von Arx, vice president. J. L. von Arx & Associates in Long Beach, Calif.

Car makers including GMAC and Ford offer their franchisees financing and insurance packages for their new vehicle inventories. However, independent agents can and do compete for this insurance business by offering dealers better deals than the car makers on the new car coverage and by offering insurance programs that go beyond just new car inventory protection.

A car dealer’s inventory of new versus used vehicles is a key consideration in any insurance program, as is whether a dealer has an open lot or building. Dealers with open lots must contend with weather exposures.

Theft is an obvious issue and rates reflect the theft risk of certain territories. “We judge our auto dealer clients according to the number of employees, territory and Zip Code,” explains Diane Nagby of Cal-Regent Insurance Services Corp. in El Cajon, Calif. “An auto dealer in downtown Los Angeles would be quoted a much higher quote than one in San Diego.”

Cal-Regent writes auto dealers in California and Arizona, with plans to expand to Nevada and Washington. The policies are with State National Insurance Co.

In addition to being an indicator of theft exposure, geography is also a major underwriting consideration given the risks of weather-related damages from snow in the north, midwest and northwest; wind, rain and hurricanes in the southeast; and rain and tornadoes in other parts of the country.

“Theft is the most common claim car dealers encounter but when it comes to the big dollars it is hurricanes and hail. If a hurricane is coming, if a dealer is in a flood zone, they contract with elevated parking structures or a lot on higher ground. They bunch all their cars together, placing the older cars on the perimeter to protect the newer, more expensive ones in the middle from the wind. A lot of the damage comes from wind-blown gravel that tears up the cars’ paint,” explains Dan Hubbel, who is with large broker Willis.

Willis offers a program for dealers of new and used autos with open lots and represents DaimlerCrysler Insurance Co. as an exclusive managing general agent. Its main program, DealerGuard, provides broad physical damage protection and is available on an admitted basis in close to 40 states and on a non-admitted basis in most others. In addition, Willis Programs offers The HailExchange, a monoline coverage for dealers located in hail-prone geographical areas.

According to George Clarke, DealerGuard executive vice president, The HailExchange gives agents a source of dealer open lot coverage even when a dealer has just suffered a multi-million dollar hail loss.

“At this point in time everyone is cognizant of the fact that property insurance is at a premium or non-existent in the Gulf states especially in Florida,” Clarke said. “DealerGuard, however, remains wide open for business and still at reasonable pricing and terms.”

Other exposures
Like most businesses, car dealers should also buy general premises liability, fire, employee dishonesty, errors and omissions, business interruption and workers’ compensation insurance.

Dealerships that in addition to selling also perform auto repairs–and most do–face additional exposures and require special insurance considerations.

Product Liability and Completed Operations protects the business in the event a customer is harmed by a faulty repair or part. Garage Keepers Legal Liability covers for damage caused by employees to customers’ automobiles.

Many dealerships in the repair business are also advised to carry pollution liability coverage if they have gasoline tanks on their premises and if they are disposing of motor oils and tires.

Insurance Services Office has an Auto Service Risks package as part of its Market Segments program. Through this, ISO carriers get policy forms, rules, and loss costs to help them offer specialized policies to this class of business.

A number of national and regional carriers, including Farmers, Federated and AIG have packages aimed at the auto services market. Zurich’s Universal Underwriters specializes in insurance for the auto industry. Lexington, Scottsdale and others also provide coverage for the market. The complete list of providers is a long one.

There are many brokers and programs managers who deal with car dealers. To name a few:

Carter Insurance Group by (www.carterinsure.com) out of Tampa, Fla., is underwriting manager for the CAR-PAC program.

Creative Agency Group (www.creativeagency.com) in Holmdel, N.J., markets the Distinguished Dealer Program, which is underwritten by Peerless Insurance.

Out of Stockton, Calif., is Automotive Risk Management & Insurance Services Inc., (www.armonline.com) which focuses on the transportation industry. ARM’s Web site is worth the visit for its slideshow on The Art of a Fabulous Package Submission.

J. L. von Arx & Associates in Long Beach, Calif., offers non-admitted garage liability coverage for dealers in California and Arizona; and admitted garage liability coverage in California. It has several programs for high valued dealer inventory and high value garage-keepers exposures that pay 7.5 to 10 percent commission.

Sales taxes in the United States

From Wikipedia, the free encyclopedia

Taxation in the United States
This article is part of a series on Taxation
Federal taxation
Authority · History Internal Revenue Service Court • Forms • Code • Revenue Taxpayer standing
Income tax · Payroll tax Alternative Minimum Tax Estate tax · Excise tax · Gift tax Corporate tax · Capital gains tax
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Federal tax reform[show] Automated payment transaction tax Competitive Tax Plan Efficient Taxation of Income Hall-Rabushka flat tax Real Property Use Tax Taxpayer Choice Act USA Tax · Value Added Tax FairTax · Flat tax
Tax protesting[show] History America: Freedom to Fascism The Law that Never Was Cheek v. United States Notable tax protesters Irwin Schiff Richard Michael Simkanin Robert Clarkson · Tom Cryer Vivien Kellems Wayne C. Bentson Wesley Snipes
Tax protester arguments: Constitutional · 16th Amendment Statutory · Conspiracy
Taxation by country[show] Australia • British Virgin Islands Canada • China • Colombia France • Germany • Hong Kong India • Indonesia • Ireland Netherlands • New Zealand Peru • Russia • Singapore Switzerland • Tanzania Thailand • United Kingdom United States • European Union Tax rates around the world Tax revenue as % of GDP

Contents 1 History 2 Impact of sales taxes 3 States and federal districts 3.1 Alabama 3.2 Alaska 3.3 Arizona 3.4 Arkansas 3.5 California 3.6 Colorado 3.7 Connecticut 3.8 Delaware 3.9 District of Columbia 3.10 Florida 3.11 Georgia 3.12 Hawaii 3.13 Idaho 3.14 Illinois 3.15 Indiana 3.16 Iowa 3.17 Kansas 3.18 Kentucky 3.19 Louisiana 3.20 Maine 3.21 Maryland 3.22 Massachusetts 3.23 Michigan 3.24 Minnesota 3.25 Mississippi 3.26 Missouri 3.27 Montana 3.28 Nebraska 3.29 Nevada 3.30 New Hampshire 3.31 New Jersey 3.32 New Mexico 3.33 New York 3.34 North Carolina 3.35 North Dakota 3.36 Ohio 3.37 Oklahoma 3.38 Oregon 3.39 Pennsylvania 3.40 Puerto Rico 3.41 Rhode Island 3.42 South Carolina 3.43 South Dakota 3.44 Tennessee 3.45 Texas 3.46 Utah 3.47 Vermont 3.48 Virginia 3.49 Washington 3.50 West Virginia 3.51 Wisconsin 3.52 Wyoming 4 State by state sales taxes 5 Sales tax planning 6 See also 7 References 8 External links

Sales taxes in the United States are taxes added onto the price of goods or services that are purchased in the United States. A sales tax is a tax on consumption, which is displayed as a percentage of the sale price. Sales taxes are assessed by every state except Alaska, Delaware, Montana, New Hampshire and Oregon. Hawaii has a similar tax although it is charged to businesses instead of consumers. In some cases, sales taxes are also assessed at the county or municipal level.

The sales tax is the responsibility of the merchant to collect and remand to the state, and stated separately (or implicitly added at the time of sale) to consumers. Usually only consumers are charged the tax; resellers are exempt if they do not make use of the goods. In some jurisdictions, a reseller’s certificate is required to make use of this privilege. This is in contrast to a value added tax (VAT), where resellers are also taxed (resellers may then claim the VAT paid on their purchases from the applicable authority). States which have exemptions for specific types of organizations (such as schools), may also require a certificate. A sales tax audit is the examination of a company’s financial documents by the state’s tax agency to verify if they have collected the correct amount of sales tax from their customers.

The Constitution of the United States limits the power of the states to subjects within their jurisdiction. Jurisdiction over interstate commerce is reserved to the federal government. Nevertheless, a resident of a state with a sales tax who purchases goods from a place with no sales tax (or at a lower rate) might be subject to pay a “use tax” (often at the same rate as the state sales tax) for non-exempt purchases (see also tax-free shopping). Washington, D.C. policymakers have also looked at adding a national value added tax in combination with an income tax as a way to generate additional revenue.^[1]

History

In 1921, West Virginia became the first US state to enact a sales tax . Georgia passed legislation enacting a sales tax in 1929. 11 other states enacted sales taxes in 1933 alone. By 1940, at least 30 states had a sales tax.^[2] Currently, 45 of the 50 U.S. States levy a sales and use tax against purchases. Alaska, Delaware, Montana, New Hampshire, and Oregon are the exceptions.^[3]

Impact of sales taxes

Sales taxes are often implemented with the effect of being “regressive” on income (using a cross section time-frame), since low income families spend a greater share of their income on taxable consumption in a given year. Sales taxes can be applied to tangible goods like food (in some states), clothing, cars, furniture, household items, and other goods that make up the bulk of lower-income and middle-income family budgets.^[4] By comparison, the sales tax does not generally apply to landscaping services, attorney fees, private school tuition, stocks and bonds, real estate investments, and other purchases more typically made by higher-income families.

The effect on the distribution of economic welfare differs with each state and their implementation of a tax.^[4] In addition, sales taxes do not apply to all goods, services, and investments made by various families, creating differing impacts on families at different income levels. Many states attempt to offset regressive effects by exempting necessity goods (like groceries) from the sales tax base.^[5] Some states have also worked to expand the sales tax to services, not traditionally taxed, in part as an effort to address fairness and the shift to a service economy.^[6] The sales tax also poses equity issues between those who can avoid the sales tax by buying on-line and those who shop locally. The Streamlined Sales Tax Project is an organized effort by states to standardize tax law among states and ultimately begin taxing Internet and mail-order sales in order to address this equity challenge.^[7]

Other types of state tax systems can have similar distributions of tax incidence. The Tax Foundation states that corporate taxes accounted for 6.3 percent of low-income households’ tax bills last year and estimate that American households pay $3,190 on average in corporate income taxes per year.^[8] Sales taxes are often seen as good tax systems for economic growth, savings, and investment. Economists at the Organisation for Economic Co-operation and Development studied the effects of various types of taxes on the economic growth of developed nations within the OECD and found that sales taxes are one of the least harmful taxes for growth.^[9]

States and federal districts

Alabama

Alabama has a state general sales tax of 4%, plus any additional local taxes which can amount to a combined total sales tax of up to 10% in some cities such as Montgomery. Alabama is one of several states that do not exempt food from state taxes^[10]. The capital of Montgomery has a sales tax of 3.5%^[11]. The largest city of Birmingham has a sales tax of 4%^[12].

Alaska

There is no state sales tax in Alaska^[13]; however, local governments (boroughs and their municipalities) may levy up to 7%, and 108 of them do so^[14]. Municipal sales taxes are collected in addition to borough sales taxes, if any. Regulations and exemptions vary widely across the state.^[15] Anchorage and Fairbanks do not charge a local sales tax^[14]. The capital of Juneau has a 5% sales tax rate^[16].

Arizona

Arizona has a transaction privilege tax (TPT) that differs from a “true” sales tax in that the tax is levied on the gross receipts of the vendor and is not a liability of the consumer.^[17] (As explained in Arizona Administrative Code rule R15-5-2202,^[18] vendors are permitted to pass the amount of the tax on to the consumer, but remain the liable parties for the tax to the state.) TPT is imposed under sixteen tax classifications (as of November 1, 2006),^[19] with the tax rate most commonly encountered by Arizona consumers (e.g., for retail transactions) set at 5.6%. The current tax as of 2009 is 6.3%,^[20] though cities and counties can add as much as 6% to the total rate.^[20] Food for home consumption and prescription drugs (including legend drugs and certain prescribed homeopathic medication) are two of many items of tangible personal property that are statutorily exempt from the state retail TPT, but cities can charge tax on food and many do). Arizona’s TPT is one of the few excise taxes in the country imposed on contracting activities rather than sales of construction materials.^[21] The capital and largest city of Phoenix has a 2% TPT rate^[22].

Arkansas

Arkansas has a state sales tax of 6%, plus any additional local taxes^[23], for instance Little Rock charges a 0.5% city sales tax^[24].

Effective July 1, 2009, Arkansas state sales tax on unprepared food (groceries) reduced to 2% from 3%. Sales taxes on groceries had previously been reduced to 3% from 6% on July 1, 2007. Local sales taxes on groceries remained unchanged.

California

At 8.25%, California has the highest state sales tax, which can total up to 10.75% with local sales tax included^[25]. Sales and use taxes in the state of California are collected by a publicly elected tax commission. The statewide 8.25% is allocated as:^[26]

• 8.25% – State
  • 5.00% – State – General Fund
  • 0.25% – State – Fiscal Recovery Fund
  • 0.50% – State – Local Revenue Fund
  • 0.50% – State – Local Public Safety Fund
  • 1.00% – Uniform Local Tax
    • 0.25% – Local County – Transportation funds
    • 0.75% – Local City/County – Operational funds

On April 1, 2009 the state sales and use tax increased by 1% as a result of the 2008-2009 California budget crisis. The minimum sales tax statewide is 8.25%.^[27][28]

Supplementary sales tax may be added (with voter approval) by cities, counties, service authorities, and various special districts (such as the Bay Area Rapid Transit district). The effect is that sales tax rates vary from 8.25% (in areas where no additional taxes are charged) to 10.75% (as of July 1, 2009, the city of South Gate and Pico Rivera increased their sales-tax rate to this level, the highest in California)^[29]. For instance, the capital of Sacramento has a combined 8.75% sales tax rate, and the largest city of Los Angeles has a combined 9.75% sales tax rate^[25].

The last changes to the published local tax rates took effect on April 1, 2007. Official updates are published on the Board of Equalization website and also in Publication 71.^[30][31]

In general, sales tax is required on all purchases of tangible personal property to its ultimate consumer. Services are not subject to sales tax (but may be subject to other taxes).

Vehicle purchases are taxed based on the city and county in which the purchaser registers the vehicle, and not on the county in which the vehicle is purchased. There is therefore no advantage in purchasing a car in a cheaper county to save on sales tax (a one-percent difference in sales tax rate would otherwise result in an additional $300 loss on a $30,000 car).

In grocery stores, unprepared food items are not taxed but vitamins and all other items are. Ready-to-eat hot foods, whether sold by supermarkets or other vendors, are taxed. Restaurant bills are taxed. As an exception, hot beverages and bakery items are tax-exempt if and only if they are for take-out and are not sold with any other hot food. If consumed on the seller’s premises, such items are taxed like restaurant meals. All other food is exempt from sales tax.

Also excluded are food animals (livestock), food plants and seeds, fertilizer used to grow food, prescription drugs and certain medical supplies, energy utilities, certain alternative energy devices and supplies, art for display by public agencies, and veterans’ pins. There are many specific exemptions for various veterans’, non-profit, educational, religious, and youth organizations. Sale of items to certain out-of-state or national entities (mostly transportation companies) is exempt, as are some goods sold while in transit through California to a foreign destination.

Occasional or one-time sales not part of a regular business are exempt, except that sales of three or more non-food animals (puppies, kittens, etc.) per year are taxed.^[32]

There are also exemptions for numerous specific products, from telephone lines and poles, to liquid petroleum gas for farm machinery, to coins, to public transit vehicles. There are partial exemptions for such varied items as racehorse breeding stock, teleproduction service equipment, farm machinery, and timber-harvesting equipment.^[33] For an organized list of exemptions, with estimates for how much revenue the state loses and the people saves for each, see Publication 61 of the Board of Equalization.^[34]

Sales tax is charged on gasoline. The tax is levied on both the gasoline and on the federal and state excise taxes, resulting in a form of “double taxation” (if the money used to purchase the gas had already been subject to income tax, as would be the case with a California resident, the scheme results in a rare form of triple taxation). The sales tax is included in the metered price at the pump. The California excise tax on gasoline is 18 cents a gallon.^[35]

Motor vehicle gasoline and jet fuel are subject to special taxation regimes. In 2005, there was a political dispute in the San Francisco Bay Area about whether revenues for jet fuel should be credited to San Mateo County (where San Francisco International Airport is physically located), the City and County of San Francisco, which owns the airport, or Alameda County, where Oakland International Airport is located. (The distinction is largely point of delivery vs. point of negotiation for the sale.) This is controlled by Regulation 1802,^[36] which has other provisions about businesses which have multiple locations.

Critics of the current sales tax regime charge that it gives local governments an incentive to promote commercial development (through zoning and other regulations) over residential development, including the use of eminent domain condemnation proceedings to transfer real estate to higher sales tax generating businesses.^[37] This is a result of Proposition 13 passed by California voters in the 1970s.

Colorado

Colorado‘s state sales tax is 2.9% with some cities and counties levying additional taxes^[38]. Denver‘s tangibles tax is 3.62%, with food eaten away from the home being taxed at 4%. There is also a football stadium tax, mass transit tax, and scientific and cultural facilities tax. Most transactions in Denver and the surrounding area are taxed at a total of about 8%. The exact sales tax rate for Denver is 7.72%^[39].

Connecticut

Connecticut has a 6% sales tax, with no additional local taxes^[40]. Most non-prepared food products are exempt, as are most prescription and nonprescription medications, all internet services, all magazine and newspaper subscriptions, and textbooks (for college students only). Most clothing costing less than $50 per item is also exempt; items costing more than $50 are charged sales tax on the entire price.^[41]

Shipping and delivery charges (including charges for U.S. postage) made by a retailer to a customer are subject to sales and use taxes when provided in connection with the sales of taxable tangible personal property or services. The tax applies even if the charges are separately stated and applies regardless of whether the shipping or delivery is provided by the seller or by a third party. No tax is due on shipping and delivery charges in connection with any sale that is not subject to sales or use tax. Shipping or delivery charges related to sales for resale or sales of exempt items are not taxable. Likewise, charges for mailing or delivery services are not subject to tax if they are made in connection with the sale of nontaxable services.^[42]

Delaware

Delaware does not assess a sales tax on consumers. The state does, however, impose a tax on the gross receipts of most businesses. Business and occupational license tax rates range from 0.096 percent to 1.92 percent, depending upon the category of business activity.

District of Columbia

Washington, D.C. has a sales tax rate of 6.00%. The tax is imposed on sale of tangible personal property and selected services. A 9% tax is imposed on liquor sold for off premises consumption, 10% on restaurant meals and rental cars, 12% on parking, and 14% on hotel accommodations. Groceries, prescription and non-prescription drugs, and residential utilities services are exempt from the District’s sales tax^[43].

The District once had two sales tax holidays each year, one during “back-to-school” and one preceding the holiday shopping season. The ‘back to school’ tax holiday was repealed on May 12, 2009.^[44]

Florida

Florida has a general sales tax rate of 6%.^[45] The tax is imposed on the sale or rental of goods, the sale of admissions, the lease, license, or rental of real property, the lease or rental of transient living accommodations, and the sale of a limited number of services such as commercial pest control, commercial cleaning, and certain protection services. There are a variety of exemptions from the tax, including groceries and prescriptions.^[46]

A “discretionary sales surtax” may be imposed by the counties of up to 1.5%, charged at the rate of the destination county (if shipped). This is 1% in most counties, 0.5% in many, 1.5% in very few such as Leon, and 0.25% in one county. A few have none at all. Most have an expiration date, but a few do not. Only the first $5,000 of a large purchase is subject to the surtax rate.^[47] Most counties levy the surtax for education or transportation improvements.

There are annual sales tax holidays, such as a back-to-school holiday on clothing, books, and school supplies under a certain price, as well as one in June 2007 to promote hurricane preparedness. The 2008 Legislators did not enact any sales tax holidays.

Florida also permits counties to raise a “tourist development tax” of up to an additional 6% on hotel rooms.

Georgia

Georgia has a 4% state sales tax rate. Groceries are exempt from the state sales tax, but still subject to tax by the local sales tax rate. Counties may impose local sales tax of 1%, 2%, or 3%, consisting of up to three 1% local-option sales taxes (out of a set of five) as permitted by Georgia law. These include a SPLOST, a homestead exemption (HOST), and one for public schools which can be put forth for a referendum by the school board instead of the county commission (in cooperation with its city councils). Also, the city of Atlanta imposes an additional 1% municipal-option sales tax (MOST), as allowed by special legislation of the Georgia General Assembly, solely for the purpose of fixing its water and sewerage systems.

As of July 2008, total sales tax rates in Georgia are 3% for groceries and 7% for other items in the vast majority of its 159 counties. A few counties charge only 2% local tax (6% total on non-grocery items), and four partially exempt groceries from the local tax by charging 2% on food, and 3% (7% total) on other items. Fulton and DeKalb counties charge 1% for MARTA, and adjacent metro Atlanta counties may do so by referendum if they so choose. For the portions of Fulton and DeKalb within the city of Atlanta, the total is at 8% (4% on groceries) due to the MOST.^[48]

Similar to Florida and certain other states, Georgia has two sales tax holidays per year. One is for back-to-school sales the first weekend in August, but sometimes starting at the end of July. A second usually occurs in October, for energy-efficient home appliances with the Energy Star certification.

Georgia has many exemptions available to specific businesses and industries. To identify potential exemptions, businesses and consumers must research the laws and rules for sales and use tax and review current exemption forms.^[49]

Hawaii

Hawaii does not have a sales tax, but it does have an excise tax which applies to nearly every conceivable type of transaction (including services), and is technically charged to the business rather than the consumer. Unlike other states, rent, medical services and perishable foods are subject to the excise tax. Also, unlike other states, businesses may or may not show the tax separately on the receipt, as it is technically part of the selling price. 4.0% is charged at retail with an additional 0.5% surcharge in the City and County of Honolulu (for a total of 4.5% on Oahu sales), and 0.5% is charged on wholesale.^[50] However, the state also allows “tax on tax” to be charged, which effectively means a customer is billed 4.166% (4.712% on Oahu). The exact dollar or percentage amount to be added must be quoted to customers within or along with the price. The 0.5% surcharge on Oahu was implemented to fund the new rail transport system.^[51] The use of an excise tax means that tax-exempt non-profit organizations must pay the tax, unlike states where they are exempt from sales taxes.

Idaho

Idaho has a 6.0% state sales tax. Some localities levy an additional local sales tax.^[52]

Illinois

Illinois’ sales and use tax scheme includes four major divisions. Retailers’ Occupation Tax, Use Tax, Service Occupation Tax and the Service Use Tax. Each of these taxes is administered by the Illinois Department of Revenue. The Retailers’ Occupation Tax is imposed upon persons engaged in the business of selling tangible personal property to purchasers for use or consumption. It is measured by the gross receipts of the retailer. The base rate of 6.25% is broken down as follows: 5% State, 1% City, 0.25% County. Local governments may impose additional tax resulting in a combined rate that ranges from the State minimum of 6.25% to a current high of 11.50% in certain business districts in Cook County.^[53]. Springfield charges 7.75% total (including state tax). A complementary Use Tax is imposed upon the privilege of using or consuming property purchased anywhere at retail from a retailer. Illinois registered retailers are authorized to collect the Use Tax from their customers and use it to offset their obligations under the Retailers’ Occupation Tax Act. Since the Use Tax rate is equivalent to the corresponding Retailers’ Occupation Tax rate, the amount collected by the retailer matches the amount the retailer must submit to the Illinois Department of Revenue. The combination of these two taxes is what is commonly referred to as “sales tax.” If the purchaser does not pay the Use Tax directly to a retailer (for instance, on an item purchased from an Internet seller), they must remit it directly to the Illinois Department of Revenue.^[54]

The Service Occupation Tax is imposed upon the privilege of engaging in service businesses and is measured by the selling price of tangible personal property transferred as an incident to providing a service. The Service Use Tax is imposed upon the privilege of using or consuming tangible personal property transferred as an incident to the provision of a service. An example would be a printer of business cards. The printer owes Service Occupation Tax on the value of the paper and ink transferred to the customer in the form of printed business cards. The serviceperson may satisfy this tax by paying Use Tax to his supplier of paper and ink or, alternatively, may charge Service Use Tax to the purchaser of the business cards and remit the amount collected as Service Occupation Tax on the serviceperson’s tax return. The service itself, however, is not subject to tax.

Qualifying food, drugs, medicines and medical appliances^[55] have sales tax of 1% plus local home rule tax depending on the location where purchased. Newspapers and magazines are exempt from sales tax as are legal tender, currency, medallions, bullion or gold or silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country.

Illinois’ system is exceptionally complicated. A brief overview is detailed on the Illinois Department of Revenue website.^[56]

The city of Chicago has the highest total sales tax of all major U.S. cities.^[57] It is also one of the most complex. 10.25% is levied on all non-perishable goods purchased, while 2% is levied on qualifying food, drugs, medicines and medical appliances.^[57] The Illinois Department of Revenue collects a 3% Chicago Soft Drink Tax and a 1% Metropolitan Pier and Exposition Authority (MPEA) “Food and Beverage Tax”, on prepared food and beverage purchases in the downtown area (These “downtown” boundaries are: Surf Street on the north, Ashland Avenue on the west, Stevenson Expressway (I-55) on the south, & Lake Michigan on the east. Furthermore, O’Hare and Midway airports also fall under the 1% MPEA tax district).^[58] In addition, the Chicago Department of Revenue collects additional sales taxes on items such as fountain drinks, bottled water, liquor, and cigarettes.^[59] Effective July 1, 2010, the sales tax rate in Chicago is scheduled to decrease by 0.5% to 9.75%. ^[57]

Indiana

Indiana has a 7% state sales tax. The tax rate was raised from 6% on April 1, 2008, to offset the loss of revenue from the statewide property tax reform, which is expected to significantly lower property taxes. Untaxed retail items include medications, water, ice and unprepared, raw staple foods or fruit juices. Many localities, inclusive of either counties or cities, in the state of Indiana also have a sales tax on restaurant food and beverages consumed in the restaurant or purchased to go. Revenues are usually used for economic development and tourism projects. This additional tax rate may be 1% or 2% or other amounts depending on the county in which the business is located. For example, in Marion County, Indiana, the sales tax for restaurants is 10%. There is an additional 2% tax on restaurant sales in Marion County to pay for Lucas Oil Stadium.

Iowa

Iowa has a 6% state sales tax, including 1% dedicated to local school districts. A local option sales tax of 1% is imposed in most cities and in the unincorporated portion of most counties, bringing the total up to a maximum of 7%. There is no tax on most unprepared food. The Iowa Department of Revenue provides information about local option sales taxes,^[60] including sales tax rate lookup.

Kansas

Kansas has a 5.3% state sales tax. More than 700 jurisdictions within the state (cities, counties, and special districts) may impose additional taxes. For example, in the capital city of Topeka, retailers must collect 5.3% for the state, 1.15% for Shawnee County, and 1% for the city, for a total rate of 7.45%. As of February 2007, the highest rate was 8.65%, in the Roeland Park Transportation District.

Kentucky

Kentucky has a 6% state sales tax. Most staple grocery foods are exempt. Alcohol sales were previously exempt until April 1, 2009, when a 6% rate was applied to this category as well.

Louisiana

Louisiana has a 4% state sales tax: 3.97% to sales tax and .03% to Louisiana tourism district.^[61] There are also taxes on the parish (county) level and some on the city levels, Baton Rouge has a 5% sales tax.^[62] Parishes may add local taxes up to 5%, while local jurisdictions within parishes may add more. Louisiana also bids out sales tax audits to private companies, with many being paid on a percentage collected basis.

Orleans Parish collects the maximum 5% tax rate for a total of 9% on general purpose items.^[63]

Maine

Maine has a 5% general, service provider and use tax.^[64] The tax on lodging and prepared food is 7% and short term auto rental is 10%. These are all generally known as “sales tax”.

Maryland

Maryland has a 6% state sales and use tax (7% restaurant sales tax in Worcester County) as of January 3, 2008 (it was 5% before this), with exceptions for medicine, residential energy, and most non-prepared foods. Currently, many services (e.g., auto repair labor, haircuts, accounting) are not taxed. With this tax increase, Maryland added sales tax on Internet purchases and other mail items such as magazine subscriptions. Clothing is also taxable.

Certain computer services were to be subject to sales tax and use tax effective July 1, 2008 after being approved without public hearing during the 2007 Special Legislative Session.^[65] However, after effective lobbying by computer services professionals, the tax was repealed April 6 during the final days of the General Assembly. Following declining approval ratings and intense public pressure, Governor Martin O’Malley relented and authorized the repeal.

Massachusetts

Massachusetts has a 6.25% sales tax as of August 1, 2009, with numerous exceptions including (among other things): “food products” (but excluding prepared meals); residential water, gas, electric services; returnable containers, clothing and footwear up to $175 (for clothing over $175, tax is due only on the amount over $175 per item^[66]); prescription medicines, prostheses and medical appliances or services; publications for use in education or religious worship; poultry and livestock, as well as their feed; fruit and vegetable stock for generating food for humans; tools, machinery, parts, etc., for use in agriculture; cloth or other materials used for making clothing; residential heat pump, solar or wind power system; items purchasable with federal food stamps; the American Flag; etc. An enacted change in 2006 taxes computer software that is downloaded for use in Massachusetts, whereas previously this was viewed as a non-taxable “service”.^[67]

On August 1, 2009, the sales tax rate in Massachusetts has increased to 6.25% from 5.00%. The state’s alcohol, satellite television, meals, and hotel taxes also increased on that date.^[68]

Every year since 2004, the State Government has enacted tax holidays suspending the sales tax on purchases for one weekend in August. Motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products, and any single item with a price exceeding $2,500 were excluded from the holiday.^[69] This tradition was halted in 2009, when the holiday was limited to Energy Star appliances under $2,500. Governor Deval Patrick noted that the fiscal losses to the Commonwealth were too great to afford a tax holiday in the present economic climate.^[70]

Michigan

Michigan has a 6% sales tax. Michigan has a use tax of 6%, which is a tax that is applied to items brought into Michigan but not bought there, and on rentals in some situations, and is supposed to be paid when filing income tax.^[71] A service tax was approved in September 2007, effective December 1, 2007, allowing certain services to be taxed. The services tax was repealed the same day it went into effect. There is no local sales tax in Michigan. Food, periodicals^[72], and prescription drugs are not taxed. Restaurants, however, do have a tax, but the tax is for the service and not on the food. Michigan also has recently introduced a business tax called the Michigan Business Tax (MBT) which replaces the Single Business Tax (SBT).^[73]

Minnesota

Minnesota currently has a 6.875% statewide sales tax. The statewide portion consists of two parts: a 6.5% sales tax with receipts going to the state General Fund, and a 3/8 of 1 percent tax going to arts and environmental projects. The 3/8 of 1 percent tax was passed by a statewide referendum on Nov. 4, 2008, and went into effect on July 1, 2009.^[74] Generally, food (not including prepared food, some beverages such as soda pop, and other items such as candy) and clothing are exempt from the sales tax. Prescription drugs are also exempt.^[75]

Local units of government may, with legislative approval, impose additional general sales taxes. As of July 1, 2008, an additional 0.25% Transit Improvement tax was phased in across five counties in the Minneapolis-St. Paul metropolitan area for transit development. These counties are Hennepin, Ramsey, Anoka, Dakota, Washington. A 0.15% sales tax is imposed in Hennepin County to finance the Minnesota Twins‘ new Target Field. Several cities impose their own citywide sales tax: Saint Paul (0.5%), Minneapolis (0.5%), Rochester (0.5%), and Duluth (1%).

These additional taxes increase the total general sales tax rates to 7.875% in Duluth, 7.775% in Minneapolis, 7.625% in Saint Paul, and 7.375% in Rochester.

In addition to general sales taxes, local units of government can, again with legislative approval, impose sales taxes on certain items. Current local option taxes include a “lodging” tax in Duluth (3%), Minneapolis (3%), and Rochester (4%), as well as served “food and beverage” tax in Duluth (2.25%).

Alcohol is taxed at an additional 2.5% gross receipts tax rate above the statewide 6.875% sales tax rate, for a total rate of 9.375%, not including any applicable local taxes.

Mississippi

Mississippi has a 7% state sales tax. Cities and towns may implement an additional tourism tax on restaurant and hotel sales. The city of Tupelo has a 0.25% tax in addition to other taxes. Restaurant and fast food tax is 9%. The city of Hattiesburg also has a 9% sales tax on Restaurant and fast food tax.

Missouri

Missouri imposes a sales tax upon all sales of tangible personal property, as well as some “taxable services”^[76]; it also charges a use tax for the “privilege of storing, using or consuming within this state any article of tangible personal property.”^[77] The state rate, including conservation and other taxes, is 4.225%, and counties, municipalities, and other political subdivisions charge their own taxes.^[78] The state sales tax rate on certain foods is 1.225%.^[79]

Transportation Development Districts and Museum Districts may impose sales tax (but not use tax) up to 1%, in addition to all other sales taxes. However, the Missouri Department of Revenue does not administer sales tax for these districts, nor does it publish their sales tax rates. As of August 2007, there is no public, comprehensive and complete list of these districts, their locations, and the sales tax rates they impose.

Missouri provides several exemptions from sales tax, such as purchases by charitable organizations or some common carriers (as opposed to “contract carriers”).^[80] Missouri also excludes some purchases from taxation on the grounds that such sales are not sales at retail; these include sales to political subdivisions.^[81] The Supreme Court of Missouri in August, 2009, stated that when a sale is excluded from taxation – as opposed to exempt from taxation – the seller must self-accrue sales tax on its purchase of the goods and remit the tax on such purchases it made.^[82]

Although the purchaser is obligated to pay the tax, the seller is obligated to remit the tax, and when the seller fails to remit, the obligation to pay falls on him. As compensation for collecting and remitting taxes, and as an incentive to timely remit taxes, sellers may keep two percent of all taxes collected each period.^[83] There are two exceptions to the general rule that the seller must pay the sales tax when he or she fails to collect it. First, no sales tax is due upon the purchase of a motor vehicle that must be titled. Instead, the purchaser pays the tax directly to the Department of Revenue within one month of purchase. As long as the vehicle is taken out of state within that first month of purchased and titled elsewhere, no tax is due in Missouri. Second, if the purchaser presents an exemption certificate to the buyer at the time of sale, then the purchaser may be assessed taxes on the purchases if the certificate was issued in bad faith.

Montana

Montana does not have a state sales tax but some municipalities which are big tourist destinations, such as Whitefish, Red Lodge, Big Sky, and West Yellowstone, have a small sales tax (3%).

Nebraska

Nebraska has a 5.5% state sales tax. Municipalities have the option of imposing an additional sales tax of up to 1.5%, resulting in a maximum rate of 7.0%. Specific tax rates per counties are available on the web.^[84]

Nevada

Nevada‘s state sales tax rate is 6.85 percent. Counties may impose additional rates via voter approval or through approval of the Legislature; therefore, the applicable sales tax will vary by county from 6.85 percent to 8.1 percent in Clark County. Clark County, which includes Las Vegas, imposes four separate county option taxes in addition to the statewide rate – 0.25 percent for flood control, 0.50 percent for mass transit, 0.25 to fund the Southern Nevada Water Authority, and 0.25 percent for the addition of police officers in that county. In Washoe County (which includes Reno), the sales tax rate is 7.725 percent, due to county option rates for flood control, the ReTRAC train trench project, mass transit, and an additional county rate approved under the Local Government Tax Act of 1991.^[85]

For travelers to Las Vegas, note that the lodging tax rate in unincorporated Clark County, which includes the Las Vegas Strip, is 12%. Within the boundaries of the cities of Las Vegas and Henderson, the lodging tax rate is 13%.

New Hampshire

New Hampshire is one of only five states that do not impose any form of general sales tax on the sale or use of tangible personal property within the state. New Hampshire does, however, levy a tax on meals (9%), room occupancies (9%), motor vehicle rentals, and use of electricity (55 cents per megawatt-hour) and phone services (7 percent). A transfer tax is levied on real estate sales, currently 1.5 percent.

In New Hampshire, any food or beverage that is prepared and served by a “restaurant,” whether served for consumption on or off the restaurant premises, is considered to be a meal. Excluded from the tax is any food and beverage that is wholly packaged off the premises and sold in the original package, such as chips, candy, soda or fruit beverages in sealed containers, and frozen novelties. Catered or delivered meals or party platters are taxable, as are charges for any service or items related to preparing or serving the food (plates, ovens, etc). Restaurants include most places where you can buy any food. There are several other exceptions. For example, meals served or furnished on the premises of a religious or charitable nonprofit organization are not taxable, nor are bakery products sold in quantity of 6 or more servings, or a whole pie, cake, or loaf of bread with multiple servings.

The New Hampshire meals and rooms tax rate is 8% on any amount over 35 cents (including any alcohol served on premise). The rooms tax is imposed on any occupancy in a hotel, house, apartment, dormitory, camp, cottage or any similar establishment offering sleeping accommodations in the State of New Hampshire, for any rental less than 185 days, not including bare campsites without shelter. The tax rate is currently 8% of the rent for each occupancy. A motor vehicle rental tax is imposed under the meals and room tax classification at a rate of 8% on the gross rental receipts of each rental, but not including separately itemized fuel, insurance or damage charges.

Gasoline tax is 20.6¢ per gallon. Cigarettes: $1.08 per pack. Beer: 30¢ per gallon.

See also tax-free shopping.

New Jersey

The state of New Jersey’s sales and use tax rate is seven percent (7%). However, there are exceptions to this statewide rate. In Urban Enterprise Zones, UEZ-impacted business districts, and in Salem County, sales tax may be charged at 3.5% (50% of the regular rate) on certain items. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City and Cape May County. For additional information, see Tax Topic Bulletin S&U-4, New Jersey Sales Tax Guide, available at: http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf

A full list of Urban Enterprise Zones is available on the State of New Jersey Web site.^[86]

New Jersey does not charge sales tax on unprepared food (except certain sweets and pet food), household paper products, medicine, and clothing. New Jersey does not charge sales tax on goods purchased for resale or on capital improvements but does charge sales tax on certain services. See the NJ Division of Taxation website at: http://www.state.nj.us/treasury/taxation/su.shtml

New Jersey does not charge sales tax on gasoline, but gasoline is subject to a $0.145/gallon excise tax.

Sales of clothing and accessories that are made of fur from the hide or pelt of an animal that is valued at $500 or more are subject to a 6% Fur Clothing Gross Receipts Tax.

New Mexico

The state of New Mexico does not have a sales tax. It instead has a statewide gross receipts tax of 5%, with municipalities assessing an additional gross receipts tax. The gross receipts tax rate is between 5.125% and 8.4375% throughout the state.^[87] In New Mexico’s gross receipts tax, all receipts from sales of goods or service within the state are taxed (with the exception of food for offsite consumption, such as grocery store sales).

The state does not prohibit retailers from collecting this tax directly from the consumer, so the gross receipts tax is commonly just passed on from the retailer to the consumer as if it were a sales tax.

New York

New York has a 4% state sales tax. All counties and some cities add local taxes ranging from 3% to 4.75%. The combined sales tax in Utica, New York, for example, is 8.75%. In New York City, total sales tax is 8.875%, which includes 0.375% charged for the service of the Metropolitan Transportation Authority.

As of September 1, 2007, New York State has eliminated sales tax on all clothing and shoes if the single item is priced under $110. Most counties and cities have not eliminated their local sales taxes on clothing and shoes. There are however, 5 cities (most notably New York City) and 11 counties (not counting the counties which make up New York City: New York, Queens, Kings, Richmond, and Bronx Counties) that have done so. The counties where the year-round exemption will apply include: Chautauqua, Chenango, Columbia, Delaware, Dutchess, Greene, Hamilton, Madison (outside the City of Oneida), Rensselaer, Tioga, Broome, and Wayne. The cities where the year-round exemption will apply include: Gloversville, New York City, Norwich, Olean, Binghamton, and Sherrill. New York also exempts college textbooks from sales tax.

As of June 1, 2008, when products are purchased online and shipped into New York State, some retailers must charge the tax amount appropriate to the locality where the goods are shipped, and in addition, must also charge the appropriate tax on the cost of shipping and handling. The measure states that any online retailer that generates more than $10,000 in sales via in-state sales affiliates must collect New York sales tax. The cumulative gross receipts from sales to New York customers as a result of referrals by all of the seller’s resident representatives total more than $10,000 during the preceding four quarterly sales tax periods.

As of August 1, 2009, New York City Sales tax increased to 8.875%. Clothing under $110 will remain tax free. Clothing above $110 will be taxed.

North Carolina

North Carolina has a state-levied sales tax of 5.5%, effective September 1, 2009, with most counties adding an additional 2.25% tax, for a total tax of 7.75% in 92 of the 100 counties. Mecklenburg County levies an additional 0.5% tax, which is directed towards funding the light rail system, for a total of 8.25% and the sales tax in a few other counties is 8%.^[88]

There is a 30.2¢ tax per gallon on gas, a 35¢ tax per pack of cigarettes, a 79¢ tax per gallon on wine, and a 53¢ tax per gallon on beer. Most non-prepared food purchases are taxed at a reduced rate of 2%. Candy, soft drinks, and prepared foods are taxed at the full combined 7.75%-8.25% rate, with some counties levying an additional 1% tax on prepared foods. In order to benefit back-to-school shoppers, there is a sales tax holiday that exempts certain items of tangible personal property sold between the first Friday in August and the following Sunday.

North Dakota

North Dakota has a 5% state sales tax for general sales. Sales Tax in North Dakota varies depending on the category(5%, 7%, 3% and 2%).^[89]

Ohio

Ohio has a 5.5% state sales tax.^[90] Counties may levy a permissive sales tax of from 1/4% up to 2.5% and transit authorities, mass transit districts usually centered on one primary county, may levy a sales tax of from 1/4% up to 2.5%. Cuyahoga county has the highest sales tax of 7.75%. Tax increments may not be less than 1/4%, and the total tax rate, including the state rate, may not exceed 8.5%. County permissive taxes may be levied by emergency resolution of the county boards of commissioners. Transit authority taxes must and county permissive taxes may be levied by a vote of the electors of the district or county. Shipping and handling charges are also taxable.Ohio law requires virtually every type of business to obtain a Ohio Sales Tax Certificate Number. If you sell goods on eBay or the internet and ship them to someone in the state you reside, then you must collect sales tax from the buyer and pay the collected tax to your state on a monthly or quarterly basis. If you sell less than $4 million in annual sales, you do not have to collect or pay sales tax on out-of-state sales. Ohio Sales Tax Resale Certificate Example: If you live in Ohio and you sell or ship something to someone else in Ohio, then you must collect and pay sales tax to the State of Ohio. But, if you sell the same item to someone outside the State of Ohio, you need not charge sales tax, but must report the exempt tax sale to the State of Ohio. Ohio also has a gross receipts tax called the Commercial Activity Tax (CAT) that is applicable only to businesses but shares some similarities to a sales tax. “Food for human consumption off the premises where sold” is exempt from sales tax, with the exception of sodas and alcoholic beverages which are taxed the full 7%.^[91] Guernsey County is 7.0% ^[92]

Oklahoma

Oklahoma has a 4.5% sales tax rate. Cities have an additional sales tax which varies, but is generally 3-4% resulting in a total sales tax rate of 7.5% to 8.5%.

Oregon

Oregon has no statewide sales tax, although local municipalities may impose sales taxes if they so choose. The city of Ashland, for example, charges a 5% sales tax on prepared food. Several Oregon communities assess sales taxes on lodging.

Pennsylvania

Pennsylvania has a 6% sales tax rate. Allegheny County has a 7% sales tax rate and Philadelphia has an 8% sales tax rate.

Food, most clothing, and footwear are among the items most frequently exempted.^[93] However, taxed food items include soft drinks and powdered mixes, sports drinks, hot beverages, hot prepared foods, sandwiches, and salad bar meals, unless these items are purchased with food stamps. Additionally, catering and delivery fees are taxed if the food itself is taxed.

Additional exemptions include internet service,^[94] newspapers, textbooks, disposable diapers, feminine hygiene products, toilet paper, wet wipes, prescription drugs, many over-the-counter drugs and supplies, oral hygiene items (including toothbrushes and toothpaste), contact lenses and eyeglasses, health club and tanning booth fees, burial items (like coffins, urns, and headstones), personal protective equipment for production personnel, work uniforms, veterinary services, pet medications, fuel for residential use (including coal, firewood, fuel oil, natural gas, wood pellets, steam, and electricity), many farming supplies and equipment, and ice.^[95]

Puerto Rico

Puerto Rico has a 5.5% commonwealth sales tax that applies to both products and services with few exemptions (including items such as unprocessed foods, prescription medicines and business-to-business services). Additionally, most municipalities have a city sales tax of 1.5% for a total of 7%. Some items that are exempt from commonwealth sales tax, specifically unprocessed foods, may still be subject to the city sales tax in the municipalities.^[96]

Rhode Island

Rhode Island has a state sales tax of 7%. The rate was raised from 5% to 6% as a temporary measure in the 1970s, but has not since been lowered. Rhode Island raised its sales tax from 6% to 7% in the early 1990s to pay for the bailout of the state’s failed credit unions. The change was initially proposed as a temporary measure, but was later made permanent. Other taxes may also apply, such as the state’s 1% restaurant tax. Many items are exempt from the state sales tax, e.g., food, prescription drugs, clothing and footwear, newspapers, coffins, and original artwork.^[97]

South Carolina

South Carolina has a 6% state sales tax, as of June 1, 2007 (7% for accommodations), but counties and some cities may impose an additional 1% or 2% sales tax. As of mid-2005, 35 of 46 counties do so. Restaurants may also charge an extra 1-2% tax on prepared food (fast food or take-out) in some places. The state’s sales tax on unprepared food disappeared completely November 1, 2007. There is a cap of $300 on sales tax for most vehicles.

Additionally, signs posted in many places of business inform that South Carolina residents over the age of 85 are entitled to a 1% reduction in sales tax.

South Dakota

South Dakota has a 4% state sales tax, plus any additional local taxes. An additional 1% sales tax is added during the summer season on sales occurring in tourism-related businesses and dedicated to the state’s office of tourism.

Currently as of 2009, all sales tax in the Rapid City area is 6%.

Tennessee

Tennessee charges 5.5% sales tax on groceries as of January 1, 2008, and 7% on other items. Counties also tax up to 2.75% in increments of 0.25% — most do so around 2.25%. If a county does not charge the maximum, its cities can charge and keep all or part of the remainder. Several cities are in more than one county, but none charge a city tax, thus paying only the county taxes.^[98][99]

Texas

The Texas state sales and use tax rate is 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities, but specifically not including school districts) may also impose sales and use taxes up to 2% for a total of 8.25%.^[100] The main items exempt from sales tax include medicines (prescription and over-the-counter), food and food seeds (but prepared food, such as from a restaurant, is subject to sales tax).^[101] The sales tax is the only source of income for the state government.

Motor vehicle and boat sales are taxed at only the 6.25% state rate; there is no local sales and use tax on these items. In addition, a motor vehicle or boat purchased outside the state is assessed a use tax at the same rate as one purchased inside the state. The sales tax is calculated on the greater of either the actual purchase price or the “standard presumptive value” of the vehicle, as determined by the state, except for certain purchases (mainly purchases from licensed dealers or from auctions).^[102]

Lodging rates are subject to a 6% rate at the state level, with local entities being allowed to charge additional amounts. Lodging for travelers on official government business is specifically exempt from tax but the traveler must submit an exemption form to the hotel/motel and provide proof of official status.^[103]

If merchants file and pay their sales and use tax on time, they may subtract 1/2 percent of the tax collected as a discount, to encourage prompt payment and to compensate the merchant for collecting the tax from consumers for the state.^[104]

Texas provides one sales tax holiday per year (generally in August prior to the start of the school year, running from Friday to Sunday of the designated weekend). Clothing less than $100 (except for certain items, such as golf shoes) and school supplies are exempt from all sales tax (state and local) on this one weekend only. There has also been talks of a tax free weekend in December to help with the Holiday shopping season.

Utah

Utah has a 4.75% state sales tax. Additionally, local taxing authorities can impose their own sales tax. Currently the majority of Utah’s aggregate sales taxes are in the range of 5.5% – 7.0%. Utah has a 16.350% sales tax on rental cars in Salt Lake City.^[105]

Vermont

Vermont has a 6% sales tax.^[106]

Virginia

Virginia has a general sales tax rate of 5% (4% state tax and 1% local tax). Consumers are taxed on every ‘eligible food item.’ For example, fresh local produce sold at farmers markets and grocery stores, or basic, unprepared cold grocery foods, are taxed 2.5% (1.5% state tax and 1% local tax).^[107] Cities and counties may also charge an additional “Food and Beverage Tax” on restaurant meals.^[108]

Virginia’s use tax also applies at the same rate for out of state purchases (food 2.5%, non-food 5%) exceeding $100 per year “from mail order catalogs”.^[109] Various exemptions include prescription and non-prescription medicine^[110], gasoline (need citation), and postage stamps, or the labor portion of vehicle repair (need citation). “Cost price” does not include separately stated “shipping” charges but it does include a separate “handling” charge or “shipping and handling” charges if listed as a combined item on the sales invoice.^[111] However, unlike Maryland and West Virginia consumer use tax forms, the Virginia CU-7 Consumer Use Tax Form does not recognize that it is possible to be under-taxed in another state and so only addresses untaxed items. Unlike Maryland’s quarterly filing, Virginia’s CU-7 is due annually between January 1 and May 1 or can be filed optionally instead with Schedule A with Form 760, or Schedule NPY with Form 760PY. As with all states, Virginia has penalties and interest for non-filing, but Virginia’s use tax is no more practically enforceable than that of any other state.

Washington

Washington has a 6.5% statewide sales tax. As of January 1, 2009, sales tax is not applied on most food items and prescription medications (not including over-the-counter medications). Individual counties, municipalities and regional transit authorities are entitled to collect a sales tax, which vary from 0.5% to 2.5%. Within King County, the King County Food & Beverage (KCF&B) tax adds an additional .5% to food and beverages purchased in bars, taverns and restaurants resulting in an effective tax rate of 10.0% (9.5% on all other items).^[112] Additionally, the sale or lease of motor vehicles for use on the road incur an additional 0.3% tax, rental of a car for less than 30 days has an additional state/local tax of 8.9%.^[112] When renting a car for less than 30 days in Seattle, the total sales tax is 18.6%. When purchasing an automobile, if you trade in a car, the state subtracts the price of the trade when calculating the sales tax to be paid on the automobile (e.g., purchasing a $40,000 car and trading a $20,000 car, you would be taxed on the difference of $20,000 only, not the full amount of the new vehicle).

When staying at a hotel (60+ rooms capacity) in Seattle, the sales tax is 15.6%. Residents of Canada and US states or possessions (only US and Canadian locations having a sales tax of less than 3%, e.g., Oregon, Alaska & Alberta) are exempt from sales tax on purchases of tangible personal property for use outside the state. Stores at the border will inquire about residency and exempt qualified purchasers from the tax.^[113] Washington also has a Gross receipts tax called the Business and Occupations Tax (B&O).

Also, the seller of a house pays excise taxes on the full sale price. The amount of the varies by county. In King and Snohomish counties, it is up to 1.78%. For example, selling a house for $500K will cost you $8900 in taxes.

Residents of Washington who purchase goods for use in Washington must pay a use tax in lieu of a sales tax if any one of four conditions are true. If a Washington resident purchases goods and certain services in other states that do not charge a sales tax or charge a sales tax rate less than the sales tax rate in Washington, or if an out of state seller does not collect Washington sales tax, the resident must pay a use tax on all goods that will be used in Washington. Use tax must also be paid if a Washington resident purchases goods from a seller who is not authorized to collect sales tax or if personal property is acquired with the purchase of real property.^[114] Washington state does not typically pursue use tax collection for most purchases, however, in 2005, the Washington State Department of Revenue began to make a concerted effort to collect use tax on artworks acquired in other states.^[115]

The lowest combined state, county and municipality sales tax rate in Washington is 7.0% in most of Klickitat and Skamania Counties, while the highest combined sales tax in Washington is the 10% tax on prepared food and beverages in King County.

April 1, 2008 saw tax increases in King County (+.001), Kittitas County (+.003), Mason County (+.001), and the city of Union Gap (+.002).^[116]

On July 1, 2008, Washington stopped charging an origin-based sales tax, and started charging a destination-based sales tax. This change only applies to transactions beginning and ending within state lines and does not apply to other states.^[112] Additionally, Washington started collecting taxes from online retailers that have voluntarily agreed to start collecting the sales tax in return for not being sued for back taxes.^[117]

The city of Seattle charges a 7.5% tax on charges for parking garages to go toward mass transit.

On November 4, 2008, voters in King County (Seattle) approved a 0.5% increase in the sales tax. Taxes within the city were increased to 9.5% on retail purchases. This increase was supposed to be effective Jan. 1, 2009, but was pushed back until April 2009. (For the first quarter of 2009, the tax rate in Seattle was 9%.)

West Virginia

West Virginia has the distinction of being the first US state to enact a sales tax.^[2] It currently stands at 6%. The sales tax on food currently stands at 3%. Effective January 1, 2006, the sales tax on food was lowered to 5%, and on July 1, 2007, it was lowered further to 4%. The sales tax on food was again lowered to 3% on July 1, 2008.^[118] However, the reduced rate of tax does not apply to sales, purchases and uses by consumers of prepared food. Prescription drugs are not subject to sales tax. Credit is allowed for sales or use taxes paid to another state with respect to the purchase.

An individual who titles a motor vehicle with the West Virginia Division of Motor Vehicles must pay a $5.00 title fee and a 5 percent title privilege tax (rather than the 6 percent sales tax). For vehicles purchased new by West Virginia residents, the measure of this tax is the net sales price of the vehicle. For used vehicles, and for vehicles previously titled in other states, the tax is measured by the National Automobile Dealers Association book value of the vehicle at the time of registration. No credit is issued for any taxes paid to another state. Trailers, motorboats, all-terrain vehicles and snowmobiles are also subject to this tax.^[119] As of June 7, 2007, new residents of West Virginia no longer have to pay the 5 percent title privilege tax on vehicles, as long as the vehicles were validly titled to the same owner outside the state.^[120]

Wisconsin

Wisconsin has a 5% state sales tax, with most of the 72 counties charging an extra 0.5% “County Tax”. Five counties (Milwaukee, Ozaukee, Racine, Washington, Waukesha) have a 0.1% tax for purchases over $10 that funds the building of Miller Park in Milwaukee. Brown County (Green Bay) has a 0.5% tax for purchases over $10 which funds the reconstruction of Lambeau Field. The municipalities of Lake Delton, Wisconsin Dells, Bayfield, and Eagle River have also been authorized to adopt an additional 0.5% tax, due to their status as popular tourist destinations^[121]. In all cases, prescriptions, most non-prepared foods (including meat and dairy), and newspapers are exempt from sales tax, however over-the-counter medications, and certain types of repair and installation services are not.^[122]

Wyoming

Wyoming has a 4% state sales tax, with counties adding up to an additional 3%, resulting in a maximum rate of 7%. In addition, resort district areas have the option to impose an additional 3% tax. Food for domestic home consumption is exempt from sales tax.

State by state sales taxes

State	General Tax	+max local Surtax	Groceries	Prepared Food	Prescription Drug	Non-prescription Drug	Clothing
Alabama	4%	10%
Alaska	none	7%
Arizona	5.6%	10.6%
Arkansas	6%	6%	2%
California	8.75%	10.25%
Colorado	2.9%
Connecticut	6%	6%					> $50
Delaware	none	none
Florida	6%	7.5%		9% (max)
Georgia	4%	8%
Hawaii
Idaho	6%
Illinois	6.25%	11.5%	1%+		1%+	1%+
Indiana	7%	9%		9% (max)
Iowa[123]	6%	7%
Kansas	5.3%
Kentucky	6%	6%
Louisiana	4%
Maine	5%	5%		7%
Maryland	6%	6%
Massachusetts	6.25%	6.25%		7%			> $175
Michigan	6%	6%					6%
Minnesota	6.875%	7.5%		9.75% (max)
Mississippi	7%	9%
Missouri	4.225%	9.241%	1.225%
Montana	none	3%
Nebraska	5.5%	7%
Nevada	6.85%
New Hampshire	none	none		9%
New Jersey	7%	7%
New Mexico	none	none
New York	4%	8.875%					> $110
North Carolina	5.5%	8.25%	2%	9.25% (max)
North Dakota	5%
Ohio	7%	7.75%
Oklahoma	4.5%	5%	4.5%
Oregon	none	none		5% (max)
Pennsylvania	6%	8%
Puerto Rico	5.5%	7%
Rhode Island	7%	7%		8%
South Carolina	6%
South Dakota	4%
Tennessee	7%	9.75%	5.5%
Texas	6.25%	8.25%
Utah	4.75%
Vermont	6%	7%		10%			> $100
Virginia	4%	5%	2.5%	5%+
Washington	6.5%	9.5%		10%
West Virginia	6%	6%	3%
Wisconsin	5%	5.6%
Wyoming	4%	7%

Color	Explanation
	Exempt from general sales tax
	Subject to general sales tax
7%	Taxed at a higher rate than the general rate
3%	Taxed at a lower rate than the general rate
3%+	Some locations tax more
3% (max)	Some locations tax less
> $50	Taxed purchases over $50 (otherwise exempt)
	No state-wide general sales tax

(1) Some states tax food, but allow an (income) tax credit to compensate poor households. They are: HI, ID, KS, OK, SD, and WY. (2) Includes statewide local tax of 1.0% in California and 1.0% in Virginia. (3) Tax rate may be adjusted annually according to a formula based on balances in the unappropriated general fund and the school foundation fund. (4) Food sales are subject to local sales taxes.

Sales tax planning

In the United States, corporate sales tax planning may include the following:

• Determination of ways to legally reduce the amount of tax due on a transaction. For instance, how a company structures its invoices can affect the taxability of the entire transaction. Each U.S. state has different rules for applying sales tax. Some states laws are more advantageous to taxpayer for certain types of transactions. If a business operates in several states, choosing the best state to take delivery in can reduce or eliminate sales tax liability. In many states an item can become taxable if not separately stated on the invoice.
• Review of company purchases to determine which assets may qualify for exemptions. Finding overlooked exemptions often results in significant savings.
• Periodic review of procedures relating to Sales & Use Tax data gathering and retention so that proper supporting documentation, including exemption and resale certificates, are available in the event of a State audit.

See also

• Gross receipts tax
• Income tax in the United States
• Federal tax revenue by state
• Sales tax
• State income tax
• State tax levels
• Use tax
• Taxation in the United States
• US State NonResident Withholding Tax
• Federal spending and taxation across states

	Are You a Victim of Identity Theft? Information and resources. http://www.invisus.com/id_victim.php
	Below is a helpful guide provided by Privacy Rights Clearinghouse to get your identity back. If you want to stay protected in the future, be sure to sign up for iDefend and let our identity specialists manage everything for you. Identity Theft: What to Do if It Happens to You You apply for a credit card and are turned down because of a low credit score, yet you know that you’ve always paid your accounts on time. A debt collector calls to demand payment on a six-month overdue account for a credit card you have never had. You receive a credit card in the mail that you’ve never applied for. What’s happening? You could be the victim of identity theft, where an imposter is using your personal information to obtain credit. Then when the thief does not pay the bills, the company itself or a debt collection company contacts you to demand payment. As a result, your credit report is likely to contain negative information about your bill-payment history, and your credit score has probably been lowered considerably, making it difficult or impossible to obtain new credit yourself. This guide provides victims of identity theft with instructions on how to regain your financial health and who to contact for more help. You must act quickly and assertively to minimize the damage. 1 Notify credit bureaus / fraud alerts 13. Passports 1a. Monitor your credit reports 14. Phone service 1b. Security freeze 15. Student loans 2. Law enforcement 16. Driver’s license number misuse 3. Federal Trade Commission 17. Identity theft involving those you know 4. New credit accounts 18. Medical identity theft 5. Existing accounts 19. Victim statements 6. Debt collectors 20. False civil and criminal judgments 7. Check and banking fraud 21. Legal help 8. ATM cards 22. Keep good records 9. Brokerage accounts 23. Dealing with emotional stress 10. Fraud involving U.S. mail 24. Making change 11. Secret service 25. Don’t give in 12. SSN misuse 26. Other useful tips 27. Resources 1. Notify credit bureaus and establish fraud alerts. Immediately report the situation to the fraud department of the three credit reporting companies — Experian, Equifax, and TransUnion. When you notify one bureau that you are at risk of being a victim of identity theft, it will notify the other two for you. Placing the fraud alert means that your file will be flagged and that creditors are required to call you before extending credit. Consider using a cell phone number if you have one. We recommend that you do not choose to call Experian. You will be subject to a marketing pitch for their “free” credit management tools. If you fail to cancel the service within 30 days, your credit card will automatically be charged for the service. Equifax: P.O. Box 740250, Atlanta, GA 30374- 0241. Report fraud: Call (888) 766-0008 and write to address above. TDD: (800) 255-0056 Web: www.equifax.com Experian: PO Box 9532 Allen TX, 75013 Report fraud: Call (888) EXPERIAN (888-397-3742) and write to address above. TDD: Use relay to fraud number above. Web: www.experian.com/fraud TransUnion: P.O. Box 6790, Fullerton, CA 92834-6790. Report fraud: (800) 680-7289 and write to address above. TDD: (877) 553-7803 E-mail (fraud victims only): fvad@transunion.com Web: www.transunion.com Under new provisions of the Fair Credit Reporting Act (FCRA, §605A) you can place an initial fraud alert for only 90 days. The credit bureaus will each mail you a notice of your rights as an identity theft victim. Once you receive them, contact each of the three bureaus immediately to request two things: a free copy of your credit report an extension of the fraud alert to seven years You may request that only the last four digits of your Social Security number (SSN) appear on the credit report. You must have evidence of attempts to open fraudulent accounts and an identity theft report (police report) to establish the seven-year alert. You may cancel the fraud alerts at any time. In all communications with the credit bureaus, you will want to refer to the unique number assigned to your credit report and use certified, return receipt mail. Be sure to save all credit reports as part of your fraud documentation file. Once you have received your three credit reports, examine each one carefully. Report fraudulent accounts and erroneous information in writing to both the credit bureaus and the credit issuers following the instructions provided with the credit reports. The FTC’s identity theft guide provides a sample letter to send to the credit bureaus requesting that fraudulent accounts be blocked. http://www.ftc.gov/bcp/edu/pubs/consumer/idtheft/idt04.pdf (scroll down to find letter) Once you notify the credit bureaus about the fraudulent accounts, the bureau is required to block that information from future reports. The bureau must also notify the credit grantor of the fraudulent account. (FCRA, §605B) Ask the credit bureaus for names and phone numbers of credit grantors with whom fraudulent accounts have been opened if this information is not included on the credit report. In addition, instruct the credit bureaus in writing to remove inquiries that have been generated due to the fraudulent access. You may also ask the credit bureaus to notify those who have received your credit report in the last six months to alert them to the disputed and erroneous information (two years for employers). Under California law, when you provide a copy of the police report to the credit bureaus, they must remove the fraudulent accounts from your credit report. (California Civil Code 1785.16(k)) 1a. Monitor your credit reports. Be aware that these measures may not entirely prevent new fraudulent accounts from being opened by the imposter. Credit issuers do not always pay attention to fraud alerts, even though the law now requires it. That is why we recommend that you check your credit reports again in a few months. The federal FACTA law enables you to receive a free credit report per year from each of the three credit bureaus. (FCRA §612) This is over and above the free reports you can order when you place fraud alerts on your three credit reports. Once you have received your free credit reports as a part of the fraud-alert process, follow up in a few months by taking advantage of your free FACTA copy. We recommend that you order your free credit reports by phone rather than using the online system. Call (877) 322-8228. For more on free credit reports, see http://www.ftc.gov/freereports and www.annualcreditreport.com. Laws in several states give individuals additional opportunities to obtain free credit reports. For confirmed identity theft victims who live in California, you can get one free report each month for the first 12 months upon request. (California Civil Code 1785.15.3) And in seven states, whether a victim or not, you can receive one free credit report each year under state law, over and above the free FACTA report you can receive yearly under federal law. These states are: Colorado, Georgia (2 per year), Maine, Maryland, Massachusetts, New Jersey, and Vermont. 1b. Security freeze. As of November 2007, individuals nationwide are able to “freeze” their credit reports with Equifax, Experian, and TransUnion. By freezing your credit reports, you can prevent credit issuers from accessing your credit files except when you give permission. This effectively prevents thieves from opening up new credit card and loan accounts. In most states, security freezes are available at no charge to identity theft victims and for a relatively small fee for non-victims. For state-by-state information on security freezes, visit this Consumers Union web page: www.consumersunion.org/campaigns//learn_more/003484indiv.html The California Office of Privacy Protection provides a guide on security freezes for Californians, www.oispp.ca.gov/consumer_privacy/consumer/documents/pdf/cis10securityfreeze.pdf. If your identity thief is aggressive and gives no indication of ceasing to use your identity to obtain credit, consider using the security freeze to reduce access to your credit file. The security freeze is free to victims of identity theft in most states. Non-victims who wish to activate the security freeze for prevention must pay a fee in most states. Some states make the security freeze available only to identity theft victims. 2. Law enforcement. Report the crime to your local police or sheriff’s department right away. You might also need to report it to police department(s) where the crime occurred if it’s somewhere other than where you live. Give them as much documented evidence as possible. Make sure the police report lists the fraudulent accounts . Get a copy of the report, which is called an “identity theft report” under the FCRA. Keep the phone number of your investigator handy and give it to creditors and others who require verification of your case. Credit card companies and banks may require you to show the report in order to verify the crime. FTC regulations define an “identity theft report” to include a report made to a local, state, or federal law enforcement agency. If your local police department refuses to file a report and your situation involves fraudulent use of the U.S. mail, you can obtain an identity theft report from the U.S. Postal Inspector. If your case involves fraudulent use of a driver’s license in your name, you might be able to obtain a report from your state’s Department of Motor Vehicles. The FTC has more information on identity theft reports at http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/defend.html 3. Federal Trade Commission. Report the crime to the FTC. Include your police report number. Although the FTC does not itself investigate identity theft cases, they share such information with investigators nationwide who are fighting identity theft. Call the FTC’s Identity Theft Hotline: (877) IDTHEFT (877-438-4338) Or use its online identity theft complaint form: https://www.ftccomplaintassistant.gov/ Or write: FTC Identity Theft Clearinghouse, 600 Pennsylvania Ave. N.W., Washington, DC 20580. The FTC’s uniform fraud affidavit form is available at http://www.ftc.gov/bcp/edu/resources/forms/affidavit.pdf Visit the Web site for the President’s Identity Theft Task Force for Identity Theft Victims’ Statement of Rights under federal law: www.idtheft.gov/ 4. What to do with new credit accounts opened by the imposter. If your credit report shows that the imposter has opened new accounts in your name, contact those creditors immediately by telephone and in writing. Recent amendments to the FCRA (§623(6)(B)) allow you to prevent businesses from reporting fraudulent accounts to the credit bureaus. The FTC provides a sample dispute letter at http://www.ftc.gov/bcp/conline/pubs/credit/fcb.shtm(scroll down). Creditors will likely ask you to fill out fraud affidavits. The FTC provides a uniform affidavit form that most creditors accept, http://www.ftc.gov/bcp/edu/resources/forms/affidavit.pdf. No law requires affidavits to be notarized at your own expense. You may choose to substitute witness signatures for notarization if creditors require verification of your signature. Ask the credit grantors in writing to furnish you and your investigating law enforcement agency with copies of the documentation, such as the fraudulent application and transaction records. Both federal and California law give you the right to obtain these documents. (FCRA § 609(e), and California Penal Code 530.8). The California Office of Privacy Protection provides instructions and sample letters on how to obtain documentation from credit grantors, http://www.oispp.ca.gov/consumer_privacy/consumer/documents/html/cis3aenglish.asp A victim of identity theft must provide a copy of the FTC affidavit or another affidavit acceptable to the business, plus government-issued identification, and a copy of an “identity theft report” (police report) in order to obtain the documents created by the imposter. The business must provide copies of these records to the victim within 30 days of the victim’s request at no charge. The law also allows the victim to authorize a law enforcement investigator to get access to these records. When you have resolved the fraudulent account with the creditor, ask for a letter stating that the company has closed the disputed account and has discharged the debts. Keep this letter in your files. You may need it if the account reappears on your credit report. You must also notify the credit bureaus about the fraudulent accounts. Instructions are provided in Section 1 above. 5. Handling problems with your existing credit or debit accounts. If your existing credit or debit accounts have been used fraudulently, report it in writing immediately to the credit card company. Request replacement cards with new account numbers. In addition to phoning the credit card company regarding the fraud, you will need to follow up in writing and will likely be asked to provide a fraud affidavit or a dispute form. Send the letter to the address given for “billing inquiries,” not the address for sending payments. Carefully monitor your mail and bills for evidence of new fraudulent activity. Report it immediately. Add secure passwords to all accounts . These should not be your mother’s maiden name or any word that is easily guessed.6. Debt collectors. If debt collectors try to get you to pay the unpaid bills on fraudulent accounts, ask for the name of the collection company, the name of the person contacting you, phone number, and address. Tell the collector that you are a victim of fraud and are not responsible for the account. Ask for the name and contact information for the referring credit issuer, the amount of the debt, account number, and dates of the charges. Ask if they need you to complete their fraud affidavit form or whether you can use the FTC affidavit. Follow up by writing to the debt collector explaining your situation. Ask that they confirm in writing that you do not owe the debt and that the account has been closed. Under new provisions in the FCRA, a debt collector must notify the creditor that the debt may be a result of identity theft. (§615(g)) The FCRA also prohibits the sale or transfer of a debt caused by identity theft. (§615(f)) 7. Check and banking fraud. If you have had checks stolen or bank accounts set up fraudulently, ask your bank to report it to ChexSystems, a consumer reporting agency that compiles reports on checking accounts. Also, place a security alert on your file (see web address below). Your bank should be able to provide you with a fraud affidavit. Put “stop payments” on any outstanding checks that you are unsure about. Close your checking account and other affected accounts and obtain new account numbers. Give the bank a password for your account (not mother’s maiden name, Social Security number, date of birth, pet’s name, sequential numbers, or any other easily guessed words). Phone: (800) 428-9623. Fax: (602) 659-2197 Web: https://www.consumerdebit.com/consumerinfo/us/en/index.htm To place a security alert on your ChexSystems report: https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/theftaffidavit/index.htm Write: ChexSystems Inc., Attn: Consumer Relations, 7805 Hudson Rd., Suite 100, Woodbury, MN 55125. If your own checks are rejected at stores where you shop, contact the check verification company that the merchant uses. The major ones are listed here. Fidelity National Information Services (was Certegy) (800) 437-5120 www.fidelityinfoservices.com SCAN (800) 262-7771 www.consumerdebit.com TeleCheck For annual file disclosure Fraud, id theft department (800) 366-2425 (800) 835-3243 (800) 710-9898 www.telecheck.com CrossCheck (800) 843-0760 www.cross-check.com Under a new federal law, you now have a right to obtain any reports that these companies compile about you. For ChexSystems and any of the check verification companies listed here that you have had to contact as a result of your identity theft situation, we recommend that you request a copy of your file once a year. Make sure your file has been corrected. If not, you will find it difficult to open new bank accounts and/or write checks. 8. ATM cards. If your ATM or debit card has been stolen or compromised , report it immediately. Contact your bank and fill out a fraud affidavit. Get a new card, account number, and password. Do not use your old password. Closely monitor your account statements. You may be liable if the fraud is not reported quickly. Start with a phone call and immediately follow up in writing. Be sure to read the debit card contract for information about liability. Some cards are better protected in cases of fraud than others. ATM and debit card transactions are subject to the Electronic Fund Transfer Act. (15 USC §1693) Even if you are a victim of identity theft, your liability for charges can increase the longer the crime goes unreported. For more on EFTA, see the Federal Reserve Board’s guide, www.federalreserve.gov/pubs/consumerhdbk/electronic.htm. Also read the FTC’s guide on electronic banking, http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre14.shtm9. Brokerage accounts. You do not have the same protections against loss with brokerage accounts as you do with credit and debit card or bank accounts. The Securities Investor Protection Corporation ( www.sipc.org ) restores customer funds only when a brokerage firm fails. If an identity thief or other fraudster targets your brokerage account, refer to your account agreement for information on what to do. Immediately report the incident to the brokerage company and notify the Securities and Exchange Commission, www.sec.gov Also notify the Financial Industry Regulatory Association, formerly NASD, www.finra.org. To protect against fraud, put a password on each of your investment accounts. 10. Fraud involving U.S. mail. Notify the local Postal Inspector if you suspect an unauthorized change of your address with the post office or if the U.S mail has been used to commit fraud. Find out where fraudulent credit cards were sent. Notify the local Postmaster to forward all mail in your name to your own address. You may also need to talk with the mail carrier. Call the U.S. Postal Service to find the nearest Postal Inspector at (800) 275-8777 or visit its web site at http://postalinspectors.uspis.gov/. The online complaint form is available at https://postalinspectors.uspis.gov/forms/MailFraudComplaint.aspx. Or you can mail your complaint to: U.S. Postal Service, Criminal Investigations Service Center, Attn: Mail Fraud, 222 S. Riverside Plaza Suite 1250, Chicago, IL 60606-6100. 11. Secret Service. The U.S. Secret Service has jurisdiction over financial fraud. But, based on U.S. Attorney guidelines, it usually does not investigate individual cases unless the dollar amount is high or you are one of many victims of a fraud ring. To interest the Secret Service in your case, you may want to ask the fraud department of the credit card companies and/or banks, as well as the police investigator, to notify the Secret Service agent they work with. www.treas.gov/usss/financial_crimes.shtml 12. Social Security number (SSN) misuse. The Social Security Administration (SSA) does not in most cases provide assistance to identity theft victims. But be sure to contact the SSA Inspector General to report Social Security benefit fraud, employment fraud, or welfare fraud. Social Security Administration online complaint form: www.socialsecurity.gov/oig SSA fraud hotline: (800) 269-0271 By mail: SSA Fraud Hotline, P.O. Box 17768, Baltimore, MD 21235 As a last resort, you might try to change your number, although we don’t recommend it except for very serious cases . The SSA will only change the number if you fit their fraud victim criteria. See the Identity Theft Resource Center’s Fact Sheet 113 for more information, http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_113_Social_Security_Number.shtml If your SSN card has been stolen or lost, order a replacement. Complete the SSA’s application available at www.socialsecurity.gov/online/ss-5.html or by calling the SSA at (800) 772-1213, or by visiting your local SSA office. You will need to provide the required documentation such as birth certificate and government ID at your local SSA office to get a replacement card. 13. Passports. Whether you have a passport or not, write to the passport office to alert them to anyone ordering a passport fraudulently. U.S. Dept. of State, Passport Services, Consular Lost/Stolen Passport Section, 1111 19th St., NW, Suite 500, Washington, DC 20036. Website: www.travel.state.gov/passport/lost/lost_849.html 14. Phone service. Identity thieves often establish fraudulent cell phone accounts, with monthly bills going unpaid. The imposter might also have opened local and long distance telephone accounts. If the imposter has obtained phone account(s) in your name, contact the phone company for information on how to report the situation. The steps that you take to clear your name with both the phone company and credit bureaus are much the same as with credit card accounts described above in steps one and three. For AT&T, the fraud hotline is (866) 718-2011. If your calling card has been stolen or there are fraudulent charges, cancel it and open a new account. For your own phone accounts, add a password that must be used any time your local, cell phone, and long distance accounts are changed.15. Student loans. If an identity thief has obtained a student loan in your name, report it in writing to the school that opened the loan. Request that the account be closed. Also report it to the U.S. Dept. of Education: Call: U.S. Dept. of Education Inspector General’s Hotline: (800) MISUSED (800-647-8733) Write: Office of Inspector General, U.S. Dept. of Education, 400 Maryland Ave., SW, Washington, DC 20202-1510. Web: www.ed.gov/about/offices/list/oig/hotline.html?src=rt 16. Driver’s license number misuse. You may need to change your driver’s license number if someone is using yours as ID on bad checks or for other types of fraud. Call the Department of Motor Vehicles (DMV) to see if another license was issued in your name. Put a fraud alert on your license if your state’s DMV provides a fraud alert process. Go to your local DMV to request a new number. Fill out the DMV’s complaint form to begin the investigation process. Send supporting documents with the completed form to the nearest DMV investigation office. California DMV fraud unit, www.dmv.ca.gov/consumer/fraud.htm. Phone: (866) 658-5758. Outside Calif.: (916) 657-2274. E-mail: dlfraud@dmv.ca.gov The California DMV actually encourages victims to contact them to place “a control” (alert) on their license whenever it is lost or stolen (rather than waiting until they find out it has been misused). It affects only DMV transactions DMVs in other states: http://www.usa.gov/Topics/Motor_Vehicles.shtml (scroll down) 17. Identity theft involving family members and others you know. If a deceased relative’s information is being used to perpetrate identity theft, or if you personally know the identity thief, additional information about how to address these situations is available in other fact sheets. Visit the Identity Theft Resource Center web site: When you know the perpetrator (family member, acquaintance), http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_115_When_ you_personallyknow_the_identity_thief.shtml ID theft of the deceased, http://www.idtheftcenter.org/artman2/publish/c_tips/Fact_Sheet_ 117_IDENTITY_THEFT_AND_THE_DECEASED_-_PREVENTION_AND_VICTIM_TIPS.shtml Children and ID theft, http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_120.shtml 18. Medical identity theft. Medical identity theft occurs when someone uses your name, Social Security number, or other personal information to obtain health care or medical products. Another variation involves false claims for medical care made to your health insurer, again using your personal information. Like other forms of identity theft, victims of medical identity theft may first become aware of a problem with a call from a debt collector. Medical identity theft can be particularly insidious since remedies involve cleaning up your medical records as well as your credit reports. For a full discussion of the crime of medical identity theft as well as steps to take if you are a victim, visit the Web site of the World Privacy Forum, www.worldprivacyforum.org 19. Victim statements. If the imposter is apprehended by law enforcement and stands trial and/or is sentenced, write a victim impact letter to the judge handling the case. Contact the victim-witness assistance program in your area for further information on how to make your voice heard in the legal proceedings. Read the Identity Theft Resource Center’s Fact Sheet 111, http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_111_Victim_Impact_Statements.shtml 20. False civil and criminal judgments. Sometimes victims of identity theft are wrongfully accused of crimes that were committed by the imposter. If you are wrongfully arrested or prosecuted for criminal charges, contact the police department and the court in the jurisdiction of the arrest. Also contact your state’s Department of Justice and the FBI to ask how to clear your name. If a civil judgment is entered in your name for your imposter’s actions, contact the court where the judgment was entered and report that you are a victim of identity theft. 21. Legal help. You may want to consult an attorney to determine legal action to take against creditors, credit bureaus, and/or debt collectors if they are not cooperative in removing fraudulent entries from your credit report or if negligence is a factor. Call the local Bar Association (www.abanet.org/premartindale.html), a Legal Aid office in your area (for low-income households), or the National Association of Consumer Advocates (www.naca.net) to find an attorney who specializes in consumer law, the Fair Credit Reporting Act, and the Fair Credit Billing Act. If you are a senior citizen or take care of a dependent adult, be sure to contact an elder law service or the nearest Aging and Independent Services program. Many district attorneys have an elder abuse unit with expertise in financial crimes against seniors.22. Keep good records. In dealing with the authorities and financial companies, keep a log of all conversations, including dates, names, and phone numbers. Note the time you spent and any expenses incurred in case you are able to seek restitution in a later judgment or conviction against the thief. You may be able to obtain tax deductio ns for theft-related expenses (26 U.S.C. §165(e) — consult your accountant). Confirm all conversations in writing. Send correspondence using certified mail with return receipt requested. Keep copies of all letters and documents. Visit these web sites for tips on organizing your case: FTC’s guide Take Charge, http://www.ftc.gov/bcp/edu/pubs/consumer/idtheft/idt04.shtm Identity Theft Resource Center, http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_106_Organizing_ Your_Identity_Theft_Case.shtml 23. Dealing with emotional stress. Psychological counseling may help you deal with the stress and anxiety commonly experienced by victims. Know that you are not alone. Contact the Identity Theft Resource Center for information on how to network with other victims and deal with the impact of this crime. www.idtheftcenter.org 24. Making change. Write to your state and federal legislators. Demand stronger privacy protection and prevention efforts by creditors and credit bureaus. 25. Don’t give in. Do not pay any bill or portion of a bill that is a result of fraud. Do not cover any checks that were written or cashed fraudulently. Do not file for bankruptcy. Your credit rating should not be permanently affected. No legal action should be taken against you. If any merchant, financial company or collection agency suggests otherwise, restate your willingness to cooperate, but don’t allow yourself to be coerced into paying fraudulent bills. Report such attempts to government regulators immediately. 26. Other Useful Tips If you are in the military, place an active duty alert on your credit report When you are away from your usual duty station, you can place an active duty alert on your three credit reports as an extra protection against identity theft. The alert remains on your credit reports for 12 months. Contact the fraud departments for the three credit bureaus. Those phone numbers are provided in Section 1 above. Order your free credit report Whether or not you are a victim of identity theft, take advantage of your free annual credit reports, now a requirement of federal law. Phone: (877) 322-8228 Web: www.annualcreditreport.com FTC’s guide: http://www.ftc.gov/freereports Opt out of pre-approved offers of credit for all three credit bureaus Call (888) 5OPTOUT (888-567-8688). You may choose a five-year opt-out period or permanent opt-out status. Or opt-out online, www.optoutprescreen.com Remove your name from mail marketing lists (Direct Marketing Association) Write: Mail Preference Service, P.O. Box 643, Carmel, NY 10512. Include check or money order for $1. Web: www.dmachoice.org. There is no charge when registering online. Remove your phone number(s) from telemarketing lists Phone the FTC’s Do Not Call Registry: (888) 382-1222 Online registration: www.donotcall.gov Order your earnings report from the Social Security Administration Order your Personal Earnings and Benefits Estimate Statement if you suspect an identity thief has used your SSN for employment: (800) 772-1213. The SSA automatically mails it to individuals three months before the birthday each year. www.ssa.gov/online/ssa-7004.html For information on reporting fraud to the SSA, read tip 12 above. Check your ID Score Track the possible misuse of your identity at the free service My ID Score, www.myidscore.com . 27. Resources Federal Trade Commission (FTC) Read its guide, Take Charge: Fighting Back Against Identity Theft, http://www.ftc.gov/bcp/edu/pubs/consumer/idtheft/idt04.pdf. Online information and complaint form: www.consumer.gov/idtheft FTC uniform fraud affidavit form: www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf Identity Theft Hotline: (877) IDTHEFT (877-438-4338) Write: FTC Identity Theft Clearinghouse, 600 Pennsylvania Ave. N.W., Washington, DC 20580 President’s Identity Theft Task Force (www.idtheft.gov/) Read Identity Theft Victims’ Statement of Rights, www.ftc.gov/bcp/edu/microsites/idtheft/consumers/rights.html Read publication, “Taking Action,” for information on what federal government agencies are doing to combat identity theft, www.idtheft.gov/takeaction.html Federal Agencies and Technology Industry For tips on online safety, visit www.onguardonline.gov Identity Theft Resource Center (ITRC) Guides for victims, www.idtheftcenter.org (Click on Victim Resources.) Phone: (858) 693-7935 Web: www.idtheftcenter.org E-mail: itrc@idtheftcenter.org Write: P.O. Box 26833, San Diego, CA 92196 U.S. PIRG and the State PIRGs Read its model legislation for identity theft prevention, www.pirg.org/consumer/credit/model.htm Web: www.pirg.org/consumer/credit California Office of Privacy Protection Web: www.privacy.ca.gov ID theft guides in English and Spanish, www.privacy.ca.gov/cover/identitytheft.htm Phone: (866) 785-9663 Write: California Office of Privacy Protection, Dept. of Consumer Affairs, 1625 North Market Blvd. Suite N324, Sacramento, CA 95834 Identity Theft Survival Kit Mari Frank, Esq., author of From Victim to Victor: A Step-by-Step Guide for Ending the Nightmare of Identity Theft and Safeguard Your Identity: Protect Yourself with a Personal Privacy Audit Web: www.identitytheft.org Phone: (800) 725-0807 U.S. Dept. of Justice. The DOJ prosecutes federal identity theft cases. Web: http://www.usdoj.gov/criminal/fraud/websites/idtheft.html FBI Internet Fraud Complaint Center. The Internet Crime Complaint Center (IC3), a partnership between the FBI and the National White Collar Crime Center, allows you to report suspected cases of Internet and e-commerce fraud, including phishing. Web: www.ic3.gov http://www.invisus.com/id_victim.php

Tips for Victims

This information is provided to assist individuals who are victims or suspect they may be victims of identity theft. It is intended as a general guide, not as legal advice.

SOME THINGS TO DO IMMEDIATELY

Victims of identity theft must act quickly to minimize the damage. It is very important to keep good notes of all conversations and records of all correspondence with your financial institutions and law enforcement agencies, including a log of the names, dates and phone number of persons you contacted. You also should confirm the information in writing. Sending your letters by certified mail, return receipt requested, will provide you with a record of your correspondence.

REPORT ID THEFT TO MAJOR CREDIT BUREAUS.

Contact the fraud departments of each of the three major credit bureaus and report that your identity has been stolen. Ask that a “fraud alert” be placed in your file.

Trans Union P.O. Box 1000 Chester, PA 19016-1000 Phone: (800) 680-7289

Experian (formerly TRW) P.O. Box 9532 Allen, TX 75013 Phone: 888-EXPERIAN ((888)397-3742)

Equifax P.O. Box 105069 Atlanta, GA 30348 Phone: (800) 525-6285

FILE A POLICE REPORT WITH LOCAL POLICE OR POLICE WHERE IDENTITY THEFT OCCURRED.

Get a copy of the police report and retain for your records. Credit card companies and financial institutions may require you to show a copy of this report to verify the crime. Keep the phone number of your investigator and provide it to creditors and others who require verification of your case.

CONTACT ALL CREDITORS.

For any accounts that have been fraudulently accessed or opened, contact the billing inquiries and security departments of the appropriate creditors or financial institutions. Close these accounts. Use passwords – not your mother’s maiden name – on any new accounts opened. Confirm your contact in writing. Ask that old accounts be processed as “account closed at consumer’s request.” Having a “card lost or stolen” reference because when this statement is reported to credit bureaus, it can be interpreted as blaming you for the loss. Carefully monitor your mail and credit card bills and report immediately any new fraudulent activity to credit grantors.

OBTAIN FREE COPY OF YOUR CREDIT REPORT, MONITOR REGULARLY.

As a victim of identity theft, you may obtain a free copy of your credit report and should monitor activity every few months. Ask the credit bureaus for names and phone numbers of credit grantors with whom fraudulent accounts have been opened. Ask the credit bureaus to remove inquiries that have been generated due to the fraudulent access. Other consumers seeking a copy of their credit report may be charged a fee.

* Equifax Phone: (800) 685-1111
* Experian (formerly TRW) Phone: 888-EXPERIAN ((888) 397-3742)
* Trans Union Phone: (800) 888-4213

Under state law (California Civil Code 1785.16(k)), a consumer submitting a valid police report can have the credit reporting agency block the reporting of any information that the consumer alleges appears on the credit report as a result of identity theft. You also may want to ask the credit bureaus to notify those who have received your credit report in the last six months in order to alert them to the disputed and erroneous information.

CONTEST BILLS THAT RESULT FROM IDENTITY THEFT.

Consumer and privacy advocates suggest not paying any portion of a bill which is a result of identity theft and not filing for bankruptcy. This will involve disputing credit card charges with the card company by writing to the address for “billing error” disputes – not the bill payment address. You should follow the directions given by the credit card company for disputing charges. This information must be provided by the company. Your credit rating should not be permanently affected, and no legal action should be taken against you as a result of identity theft. If any merchant, financial institution or collection agency suggests otherwise, simply restate your willingness to cooperate, but don’t allow yourself to be coerced into paying fraudulent bills. Report such attempts to government regulators immediately.

ACCESS INFORMATION IF ACCOUNT OPENED FRAUDULENTLY IN YOUR NAME.

If a loan, credit or utility service account has been opened fraudulently in your name, you now can obtain a copy of the application used and a record of transactions or charges associated with that account. The information you learn may be useful in determining what personally identifying information was stolen, help clear your good name and credit, and even lead to the identity of the thief.

Here is a checklist for accessing account info under California Penal Code section 530.8:

* File a Police Report that you believe you are a victim of identity theft. Keep a copy of the police report.
* Fill out the request forms provided by the law enforcement agency or use the Fraudulent Account Information Request Form
* Fill out the Identity Theft Affidavit PDF logo [PDF 50 kb / 7 pg]
* Send completed package (Info Request/ID Theft Affidavit/Police Report) to each creditor where the thief opened an account using your stolen identity.
* Provide account information you receive to the police officer investigating your ID theft case.

FALSE CIVIL AND CRIMINAL JUDGMENTS.

Sometimes victims of identity theft are wrongfully accused of crimes committed by the identity thief. If a civil judgment has been entered in your name for actions taken or debts incurred by your impostor, contact the court where the judgment was entered and report that you are a victim of identity theft. If you are wrongfully prosecuted for criminal charges, contact the state Department of Justice and the FBI and obtain information on how to clear your name. The California Department of Justice will be establishing a statewide data base beginning September 2001 to provide certain information about identity theft crimes to victims and law enforcement agencies.

FOR OTHER TYPES OF IDENTITY THEFT:

NOTIFY CALIFORNIA DEPARTMENT OF MOTOR VEHICLES OF MISUSE OF DRIVER’S LICENSE NUMBER.

You may need to change your driver’s license number if someone is using yours as identification on bad checks. Call the DMV to see if another license was issued in your name. Put a fraud alert on your license. Go to your local DMV to request a new number. Also, fill out the DMV’s complaint form to begin the fraud investigation process. Send supporting documents with the completed form to the nearest DMV investigation office. Web: Department of Motor Vehicles

REPORT STOLEN CHECKS AND STOP PAYMENT IMMEDIATELY.

If you have had checks stolen or bank accounts set up fraudulently, report it to the appropriate check verification companies. Put stop payments on any outstanding checks that you are unsure of. Cancel your checking and savings accounts and obtain new account numbers. Give the bank a secret password for your account (not mother’s maiden name). If your own checks are rejected at stores where you shop, contact the check verification company that the merchant uses. To report fraudulent use of your checks:

* Chexsystems: (800) 428-9623
* CrossCheck: (800) 843-0760
* Equifax: (800) 437-5120
* International Check Services: (800) 631-9656
* SCAN: (800) 262-7771
* TeleCheck: (800) 710-9898

REPORT STOLEN ATM CARDS AND CHANGE PASSWORDS IMMEDIATELY.

Get a new ATM card, account number and password. When creating a password, don’t use common numbers like the last four digits of your SSN or your birth date. Monitor your account statement. You may be liable if fraud is not reported quickly.

FOR SUSPECTED FRAUDULENT CHANGE OF ADDRESS, NOTIFY LOCAL POSTAL INSPECTOR.

Call the U.S. Post Office to obtain the phone number of the local Postal Inspector. Find out where fraudulent credit cards were sent. Notify the local Postmaster for that address to forward all mail in your name to your own address. You may also need to talk with the mail carrier. U.S. Postal Inspection Service

U.S. Post Office Phone: (800) 275-8777

REPORT MISUSE OF SOCIAL SECURITY NUMBER BY CALLING SECURITY ADMINISTRATION.

Order a copy of your Personal Earnings and Benefits Statement and check it for accuracy. The thief might be using your SSN for employment purposes. If you fit specific fraud victim criteria, the Social Security Administration may change your Social Security Number. Report fraud: (800) 269-0271. Order Personal Earnings and Benefits Statement: (800) 772-1213. Web: U.S. Social Security Administration

FOR SUSPECTED MISUSE, CANCEL LONG DISTANCE CALLING CARD ACCOUNTS

If your long distance calling card has been stolen or you discover fraudulent charges, cancel the account and open a new one. Provide a password which must be used any time the account is changed.

FOR MISSING OR FRAUDULENT PASSPORTS, NOTIFY THE US STATE DEPARTMENT.

Whether you have a passport or not, write the passport office to alert them to anyone ordering a passport fraudulently.

SEEKING LEGAL ADVICE.

You may want to consult a lawyer to determine legal action to take against creditors and/or credit bureaus if they are not cooperative in removing fraudulent entries from your credit report or if negligence is a factor. Call the local Bar Association or Legal Aid office to find an attorney who specializes in consumer law, the Fair Credit Reporting Act and the Fair Credit Billing Act.

IDENTITY THEFT RESOURCES

* California Office of Privacy Protection
* Electronic Privacy Information Center (EPIC)
* Federal Deposit Insurance Commission
* Federal Trade Commission (FTC)
* Privacy Rights Clearinghouse
* US Comptroller of the Currency
* US Justice Department
* US Postal Inspection Service
* US Public Interest Research Group
* US Secret Service

SmartMoney Magazine by Kirsten Vala (Author Archive)
10 Things the DMV Won’t Tell You

1. “It’s our pleasure to confuse you.”

It seems like everyone’s got a DMV horror story. For Mike Hume, a sports journalist, it came after a move from Connecticut to Virginia, when he headed to the DMV to transfer his out-of-state license. It took four visits and roughly three hours of standing in line to get it. The problem? Everything from not bringing enough or the right forms of ID to having his records confused with those of another driver of the same name. After an estimated 20 hours of DMV-related work over the course of a week, Hume finally received his license, and just in time: It was the day before his old one expired. “I consider myself a smart guy,” Hume says. “But it doesn’t matter. Everyone can be a victim at the DMV.” (A Virginia DMV spokesperson says, “We have a high standard for meeting customer expectations, and have a large number who are satisfied.”)

Making sense of the DMV is an $11.5 million business for DMV.org, an unofficial guide to state rules and peccadilloes. “DMV.org was created to bridge the gap between consumers and the government,” says founder Raj Lahoti. Indeed, the site gets five million visitors a month hoping to ace their next DMV visit.

2. “Your used car could be a ticking time bomb on wheels.”

Remember those pics of flooded car lots after Hurricane Katrina? You could end up buying one of those cars today and never know it. In the past five years, the number of flooded cars sold as “used” has doubled nationwide, according to Carfax spokesperson Larry Gamache.

Once deemed totaled, cars are supposed to be sold for scrap. But unscrupulous sellers can buy them at auction, then replace the title at a Department of Motor Vehicles office in another state by fudging the document, saying it’s lost or retitling in a state that doesn’t recognize “flooded” as totaled. The practice isn’t just deceitful; it’s downright dangerous, says Gamache, as Diane Zielinski found out. She bought her teenage son a used Grand Am thinking she’d gotten a great deal — until the engine exploded as he was driving. “He could very easily have been killed,” she says. A Carfax report revealed the car’s title had been branded “flooded” after Hurricane Floyd, then reregistered in Pennsylvania. If you’re buying a used car, Gamache recommends having a mechanic inspect it first. And screen the car’s VIN through the free database at carfax.com/flood.

3. “When it comes to car theft, we’re part of the problem.”

There’s another way criminals take advantage of flimsy DMV car records: “VIN cloning,” a kind of vehicle laundering. A stolen car’s vehicle-identification number is switched with that of a junked car, and a clean title is obtained from the DMV. To combat this practice, the 1992 Anti-Car Theft Act authorized the creation of a database, known as the National Motor Vehicle Title Information System, which allows state DMVs to verify a car’s title, theft and damage history before issuing a new title. But 15 years later only 30 states belong to the network, and those that don’t, including California and Illinois, are havens for car thieves and chop shops. “Until all 50 states participate, the system is full of holes,” says Rosemary Shahan, of Consumers for Auto Reliability and Safety, a nonprofit consumer-advocacy group.

Car theft costs Americans $7.6 billion a year, according to the National Insurance Crime Bureau. Who benefits? Organized crime, for one. But the stakes are higher than grift money. Perpetrators of the first World Trade Center bombing and the Oklahoma City Federal Building bombing were traced with the help of VINs.

4. “Consistency is the hobgoblin of…well, not us, that’s for sure.”

Rules that differ by state (and city, and county) may be a problem for law-abiding drivers, but for those looking to slip through the cracks, they’re a godsend. For example, emission checks are required for registration in 13 states and in parts of another 17 states, but not at all in 20 states. And since every state has different plates, says Ashly Knapp, founder of Auto Advisors, a consultancy for car buyers, police can’t tell if an out-of-state license is expired until they can see it up close. Some drivers register a car in a state with lower taxes, then drive it in their own state with expired plates. “I’m impressed how many people tell me they get away with it,” Knapp says.

Worse are loopholes for drunk drivers. Repeat offenders get listed in the National Highway Traffic Safety Administration’s National Driver Register, but records for those with one DUI are often confined to one state — meaning you might get a clean driving record simply by hopping states, says Jason King, of the American Association of Motor Vehicle Administrators. The proposed Real ID Act could fix these problems, King says, by forcing states to share driving records in a national database.

5. “You think getting your license is a hassle — try filing a complaint.”

Every institution has problems, but the DMV is notorious for its surly service. Newlywed Laura Zhu tried to get a license with her maiden name as her second middle name. When she explained this to the DMV worker at a New York City office, Zhu says the woman yelled at her, “You have to hyphenate if you want two last names!” After speaking with a supervisor and finding out that it is indeed state policy to hyphenate, Zhu says she was sent back to the same window. That’s when things got ugly. “Little Miss Doesn’t-Want-to-Hyphenate wants a license now,” the clerk announced loudly, then proceeded to sing a little tune as she worked: “Anderson hyphen Zhu! Anderson hyphen Zhu!”

The online complaint form Zhu filed about the incident promised a five-day response — but at press time, Zhu says she’s been waiting well over a month. New York State DMV spokesperson Ken Brown insists online complaints usually receive a prompt response and says Zhu’s letter must have encountered technical problems. Other ways of filing a complaint include talking with the supervisor or sending a letter to the office manager.

6. “We’re just as good at breaking the law as enforcing it…”

DMV employees must deal with the public and handle sensitive information, but unsavory characters can slip through anyway. Consider North Carolina license examiner George Sidbury, convicted in 2004 for assaulting a 16-year-old girl taking her road test, or California DMV instructor Calvin Hoang Cat, who in 2005 pleaded no contest to 29 charges of fondling or talking lewdly to teenage girls and women. But more common are the opportunists, looking to use their position to make a quick buck. New Jersey, New York, Virginia, Connecticut and California have all uncovered DMV scams in the past 10 years, in which employees granted driver’s licenses to illegal immigrants for a hefty profit. FBI indictments in a 2006 Oakland, Calif., case identified 10 people in a black market conspiracy to sell driver’s licenses — five of them DMV employees.

“There’s a high demand for valid ID obtained through fraudulent means,” says Jason King, of the AAMVA. Fraud is a problem on both sides of the DMV counter, he says, and the fact that so many employees are being caught shows how committed the DMV is to addressing the problem.

7. “…and we all but enable identity theft.”

Identity theft is the No. 1 crime in the U.S., according to Werner Raes, president of the International Association of Financial Crimes Investigators. The simplest form, mostly used by beginners, is to ask the DMV for a duplicate license in someone else’s name. Identity thieves simply tell the DMV clerk that they’ve lost their license or that it was stolen, then provide someone else’s illegally obtained information. It’s a simple con to pull off. As for the victims, there’s nothing simple about it — their credit will be ruined as checks start bouncing and new credit card accounts are opened in their name.

Some state DMVs are beginning to take precautions against identity theft, such as checking a database of past photographs before renewing or mailing the completed license to the address provided. Nevertheless, Raes recommends checking your credit report at least once a year to see if there’s any unusual activity.

8. “Just because you can’t see doesn’t mean you can’t drive.”

Everybody thinks they’re a good driver, but a 2007 study by market-research firm TNS showed that one in six drivers would fail a state test if they took it today. Indeed, most people get their driver’s license in their teens and are never retested. One big problem over time is vision, which tends to degenerate, says Richard Bensinger, a Seattle ophthalmologist and American Academy of Ophthalmology spokesperson. Physical impairments, along with macular degeneration, glaucoma and cataracts can make older drivers less safe behind the wheel, and it’s projected that by the year 2025 drivers over age 65 will make up 25% of the driving population, up from 14% in 2001, according to nonprofit research outfit the RAND Corporation.

When renewing your license, vision-test requirements, like everything else, vary by state. And while the trend is moving toward age-related regulations, according to a 2007 Insurance Institute for Highway Safety report, 24 states still do not require older drivers to renew more often or have their vision tested when renewing.

Bensinger says that he will sometimes make recommendations about license restrictions for his patients, suggesting a person shouldn’t be allowed to drive at night or on high-speed roads. But ultimately, it’s the DMV’s decision. Family members (along with physicians and police officers) can likewise recommend that the DMV check up on someone they think is a danger on the road — though it varies by state whether such tips can be made confidentially or not.

9. “Your vanity plate says ‘MUG ME.’”

Personalized license plates might seem like a harmless accessory, but they could make you a more likely target for criminals. Why? Because they communicate much more than the written message. “Personalized plates indicate that the person bearing them wants to be noticed,” says Phil Messina, a retired New York City police officer and founder of a self-defense school in Lindenhurst, N.Y. “The downside of doing things that tend to ‘get you noticed’ is that they can get you noticed by the wrong kind of people.”

Consumer advocate Tim Duffy agrees, pointing out that plates indicating the driver is a woman or a senior citizen or both — as in “Katie’s Grandma” — are especially problematic. Spotting one of these plates in a parking lot, a mugger may hide behind or near the car, waiting for the driver to return. “You don’t want to be a victim of a crime,” Duffy says, “and you don’t want to make it easier for someone to commit a crime.”

10. “Fake ID? We fall for it all the time.”

A driver’s license is often considered the default form of identification in the U.S., used to board airplanes, rent cars and open bank accounts. Yet it’s not hard at all to obtain one illegally by taking advantage of the weakest link in the U.S. identification system: the birth certificate. “I can show 60 to 70 ways to get a birth certificate, either fake or real,” says Werner Raes, of the International Association of Financial Crimes Investigators. And as a result, “you can go in and get driver’s licenses all day long in this country, in any name you want.”

Since the Department of Motor Vehicles also issues alternative nondriver’s license ID cards — a real state-revenue booster — the DMV is, in effect, being used as the leading identification verifier in a country where national security is increasingly important and terrorism is an ever-looming threat. Yet it’s not their main responsibility. “Their task is to certify that people can operate a motor vehicle,” says Raes.

The best solution? Raes would argue that it’s national identification cards. But many groups are opposed to the idea, saying the lack of privacy would overshadow the safety and security benefits. Not to mention create another civil service bureaucracy for the public to navigate.

http://www.smartmoney.com/spending/rip-offs/10-things-the-dmv-wont-tell-you-22033/

State Board of Equalization August 2009
Publication 177 • LDA
For additional information you may download regulations, forms and publications from our website or you may call our Taxpayer Information Section to talk to a Board of Equalization representative.
BOE website and Board Member contact information:
www.boe.ca.gov
Taxpayer Information Section 800-400-7115 TDD/TTY 800-735-2929
Taxpayers’ Rights Advocate 888-324-2798
e∙file BOARD OF EQUALIZATION

Internet Auction Sales and Purchases
There is no general tax exemption for sales made over the Internet. Thus, Internet sales of tangible personal property are generally taxable in California. Sales and use tax applies to Internet sales in the same way as sales made at retail stores or other outlets, through sales representatives, over the telephone, or by mail order. Please see publication 109, Internet Sales. “Tangible personal property” (merchandise) means personal property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses.
California permit requirements

Generally, a person in California who makes three or more sales of merchandise in a 12-month period is considered a retailer and required to hold a seller’s permit. This is true regardless of whether the sales are at retail or for resale or delivered outside California, unless you make no sales in this state. When you sell merchandise in California, even temporarily, you are generally required to register with the Board of Equalization (BOE), and to pay sales tax on your taxable sales. Please see publication 107, Do You Need a California Seller’s Permit?
If, through Internet auction houses you list your merchandise to sell, seek bids, accept a bid from the highest bidder, and transfer the merchandise to the purchaser, you are generally considered the retailer in your transactions. This is true whether you receive the funds or have another party, such as PayPal, collect the funds on your behalf.
Sales by retailers made through Internet auction houses, such as eBay and uBid, or sites that offer online classified advertisements (online advertisers) such as Craigslist and Amazon, are generally subject to California sales tax. Internet auction houses differ from most online companies by offering a service to other retailers allowing them to post their merchandise for sale on its site. Businesses like eBay, uBid or Craigslist are generally not considered retailers and are not responsible for collecting tax on those transactions. These businesses aid sellers and sales are the responsibility of the holder of the property.
District taxes-sellers
If you are an Internet seller “engaged in business” (see publication 107, Do You Need a California Seller’s Permit?) in a district tax area, you must report and pay district taxes on sales made in that district. However, if you are not engaged in business in the district, you are not required to collect district tax and you must report and pay the statewide rate (8.25 percent as of the date of this publication). Generally, if you are not engaged in business in a tax district area and you ship by common carrier into the district, your customer is liable for the district use tax. As a courtesy to your customer, you may choose to collect the district use tax from them. If you do, it should be shown on the customer’s invoice and you must report it on your return and pay it to us.
State Board of Equalization • Publication 177 • Internet Auction Sales and Purchases • August 2009
District taxes-purchaser
When making purchases, be sure to verify the tax rate applied to your purchase. If you are in a district tax area and the seller charged you a rate lower than your district’s tax rate, you are liable for use tax at the full rate in effect at the California location where you first store, use or otherwise consume the merchandise.*
Tax applies to vehicles purchased over the Internet in the same manner as those purchased from a vehicle dealer or private party. Please refer to Regulation 1610, Vehicles, Vessels and Aircraft, and publication 34, Motor Vehicle Dealers.
For district tax requirements on sales and purchases see publication 44, District Taxes, publication 105, District Taxes and Delivered Sales, and publication 112, Purchases from Out-of-State Vendors. For tax rates, see publication 71, California City and County Sales and Use Tax Rates. Please refer to www.boe.ca.gov or our “For more information” section for BOE information and all regulations and publications referenced in this publication.
*Note: If you do not hold a California seller’s permit, you can report and pay use tax on your California income tax return. You may also download a BOE-401-DS, Use Tax Return, included in publication 79B, California Use Tax. If you have a California sales or use tax permit, use the return included in publication 79B only to report personal purchases not related to your business.
If you are a business that holds a seller’s permit, you can report and pay use tax when submitting your return under “Purchases subject to use tax.”
District tax example
You purchase merchandise from an online seller who charges sales tax at the statewide rate
(8.25 percent). The seller ships the merchandise to you in Los Angeles County that has a tax rate of
9.25 percent. You (the purchaser) are liable for the additional 1.00 percent district tax in Los Angeles County.
Use tax on out-of-state purchases
When you purchase merchandise from an out-of-state retailer, you are liable for the use tax due on your out-of-state purchases. The use tax rate is the same as the sales tax rate for any given California location.
Whether the seller charges a lump-sum price or itemizes the merchandise price and other charges, tax is due on the entire purchase price. Any service fees related to a taxable sale are generally taxable, however, shipping and delivery charges may not be taxable (see “Shipping and delivery charges”).
Generally, if you purchase merchandise from a private party located out-of-state and he or she makes fewer than three sales in a 12-month period, the purchase would not be subject to use tax since the sale is considered an occasional sale. However, if the private party makes three or more sales in a year, the purchase would be subject to use tax.
Most Internet auction houses provide a sales history of the vendor, which may be useful in deciding whether the transaction qualifies as an occasional sale. To determine or obtain proof that a private party’s sale to you is an occasional sale, you may have to contact the individual to find out if he or she has made three or more sales in a 12-month period. If so, you would have to report the use tax.
Shipping and delivery charges
Tax does not apply to separately stated charges for delivery of property from the retailer’s place of business or other point from which shipment is made directly to the purchaser, provided the delivery is by other than the facilities of the retailer (by United States mail, independent contract or common
State Board of Equalization • Publication 177 • Internet Auction Sales and Purchases • August 2009
carrier). Handling charges are a service related to the sale and are subject to tax when related to a taxable sale. Please see publication 100, Shipping and Delivery Charges.
A retailer selling merchandise for an artificially low price and then charging an excessive amount for “shipping” without payment of tax on the excessive shipping charge would be understating taxable sales. Since the law provides that only the actual cost of shipment is exempt from tax, the difference between the actual cost of shipment and the amount charged for shipping would be subject to tax.
Sales delivered outside California
Sales tax generally does not apply to your transaction when you sell a product to a nonresident of this state, and under an agreement with the purchaser, ship it directly to the purchaser at an out-ofstate location, for use outside California. Please see publication 101, Sales Delivered Outside California.
For more information
BOE regulations, publications and additional information are available at www.boe.ca.gov or by calling our Taxpayer Information Section at 800-400-7115.
Regulations
1595 Occasional Sales–Sale of a Business–Business Reorganization
1610 Vehicles, Vessels and Aircraft
1620 Interstate and Foreign Commerce
1684 Collection of Use Tax by Retailers
1685 Payment of Tax by Purchasers
1686 Receipts for Tax Paid to Retailers
1699 Permits
1700 Reimbursement for Sales Tax
1823 Application of Transactions (Sales) and Use Tax
1827 Collection of Use Tax by Retailers (for special district taxes)
Publications
34 Motor Vehicle Dealers
44 District Taxes
71 California City and County Sales and Use Tax Rates
79B California Use Tax
100 Shipping and Delivery Charges
101 Sales Delivered Outside California
105 District Taxes and Delivered Sales
107 Do You Need a California Seller’s Permit?
109 Internet Sales
112 Purchases From Out-of-State Vendors
Note: This publication summarizes the law and applicable regulations in effect when the publication was written, as noted on the cover. However, changes in the law or in regulations may have occurred since that time. If there is a conflict between the text in this publication and the law, decisions will be based on the law and not on this publication.

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we make it simple for you

car dealer education for getting your car dealer license

800-901-5950

Birth of the internet

CBC News

The internet was originally conceived for the U.S. military as a means of allowing a community of computers to share information over distance. It’s generally accepted that its later development was spurred on as much for research purposes as for military applications.

The body in charge of setting up the network was the Advanced Research Projects Agency (ARPA). In 1967, ARPA enlisted the help of the Stanford Research Institute in Menlo Park, Calif., to design the system. Within a year, Stanford researchers had designed a framework, which ARPA contracted out for implementation.

The first two nodes were installed at UCLA and Stanford Research Institute in August of 1969, but it wasn’t until two months later that the machines made first contact.

On October 29, 1969, at 10:30 p.m., UCLA engineering professor Leonard Kleinrock and student Charley Kline attempted to send a message from one Honeywell computer to a similar unit 600 kilometres away at Stanford Research Institute in Palo Alto. The connection speed was 50 kb/s.

The first message was supposed to be the word “login,” but the system crashed as they typed in the letter “g.” The first message, then, was “lo.” Although it was a bumpy – if not prophetic – beginning, the researchers were able to complete the message one hour later.

And so the ARPANET (the term internet was not coined until 1982) was born.

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Portugal, Mark

From Astro-Databank

Name	Portugal, Mark Gender: M
Birthname	Portugal, Mark Steven
born on	30 October 1962 at 07:45 (= 07:45 AM )
Place	Los Angeles CA, USA, 34n03, 118w14
Timezone	PST h8w (is standard time)
Data source	From memory Rodden Rating A
Astrology data	06°44′ 00°13 Asc. 25°18′

Biography

American pro baseball pitcher who has played on the American League for four years and the National League for nine years as of 1998. Portugal was signed as a non-drafted free agent by the Minnesota Twins organization 10/23/1980, right out of high school. Playing solid for five years, he was placed on the disabled list, August 1985 and in 1988. He was then traded to the Houston Astros 12/04/1988 and has since played with the San Francisco Giants, Cincinnati Reds and the Philadelphia Phillies 12/12/1996. Portugal was honored with pitcher on The Sporting News N.L. Silver Slugger team in 1994, appeared in one game as a pinch-runner, 1991, had one sacrifice hit in his only appearance as a pinch-hitter in 1981 and pitched in the Championship Series games of 1995. At 6’0″, 190 lbs., he throws right and bats right.

Link to Wikipedia biography

Events

• Work : Contracts, agreements 23 October 1980 (Signed with the Minnesota Twins)

• Health : Job related injury August 1985 (Placed on the disabled list)

• Health : Job related injury 1988 (Disabled list)

• Work : Contracts, agreements 4 December 1988 (Singed with the Houston Astros)

• Work : Contracts, agreements 12 December 1996 (Signed with the Philadelphia Phillies)

• Work : Prize 1994 (The Sporting News Silver Slugger team pitcher)

• Work : New Job 1991 (One appearance as a pinch-runner)

• Work : New Job 1996 (One appearance as a pinch-hitter)

• Work : Gain social status 1995 (Pitched in Championship Series game)

Categories

• Notable : Awards : Vocational award (Pitching award)

• Vocation : Sports : Baseball (Pro, pitcher)

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Halloween

From Wikipedia, the free encyclopedia

Halloween
Jack-o’-lantern
Also called	All Hallows’ Eve All Saints’ Eve
Observed by	Numerous Western countries (see article)
Type	Secular, with roots in Christian and Celtic tradition
Begins	Sunset
Ends	Midnight
Date	October 31
Celebrations	Costume parties, trick-or-treating in costumes, bonfires, divination
Related to	Samhain, All Saints’ Day

Halloween (also spelled Hallowe’en) is an annual holiday celebrated on October 31. It has roots in the Celtic festival of Samhain and the Christian holy day of All Saints. It is largely a secular celebration but some have expressed strong feelings about perceived religious overtones.^[1][2][3]

The day is often associated with the colors black and orange, and is strongly associated with symbols like the jack-o’-lantern. Halloween activities include trick-or-treating, wearing costumes and attending costume parties, ghost tours, bonfires, visiting haunted attractions, pranks, telling scary stories, and watching horror films.

Contents [hide] 1 History 1.1 Origin of name 2 Symbols 3 Trick-or-treating and guising 3.1 Costumes 3.1.1 Costume sales 3.2 UNICEF 4 Games and other activities 4.1 Haunted attractions 4.2 Foods 5 Around the world 6 Religious perspectives 7 See also 8 References 9 Further reading 10 External links

//

History

Halloween has origins in the ancient festival known as Samhain (pronounced sow-in or sau-an),^[4][5] which is derived from Old Irish and means roughly “summer’s end”.^[5] This was a Gaelic festival celebrated mainly in Ireland and Scotland. However, similar festivals were held by other Celts – for example the festival of Calan Gaeaf (pronounced kalan-geyf) which was held by the ancient Britons.

The festival of Samhain celebrates the end of the “lighter half” of the year and beginning of the “darker half”, and is sometimes^[6] regarded as the “Celtic New Year”.^[7]

The celebration has some elements of a festival of the dead. The ancient Celts believed that the border between this world and the Otherworld became thin on Samhain, allowing spirits (both harmless and harmful) to pass through. The family’s ancestors were honoured and invited home whilst harmful spirits were warded off. It is believed that the need to ward off harmful spirits led to the wearing of costumes and masks. Their purpose was to disguise oneself as a harmful spirit and thus avoid harm. In Scotland the spirits were impersonated by young men dressed in white with masked, veiled or blackened faces.^[8][9] Samhain was also a time to take stock of food supplies and slaughter livestock for winter stores. Bonfires played a large part in the festivities. All other fires were doused and each home lit their hearth from the bonfire. The bones of slaughtered livestock were cast into its flames.^[10] Sometimes two bonfires would be built side-by-side, and people and their livestock would walk between them as a cleansing ritual.

Another common practise was divination, which often involved the use of food and drink.

The name Halloween and many present-day traditions, derive from the Old English era.^{[11][12][13][14][15]}

Origin of name

The term Halloween, originally spelled Hallowe’en, is shortened from All Hallows’ Even – e’en is a shortening of even, which is a shortening of evening. This is ultimately derived from the Old English Eallra Hālgena ǣfen.^[16] It is now known as “Eve of” All Saints’ Day, which is November 1st.

A time of pagan festivities,^[7] Popes Gregory III (731–741) and Gregory IV (827–844) tried to supplant it with the Christian holiday (All Saints’ Day) by moving it from May 13 to November 1.

In the 800s, the Church measured the day as starting at sunset, in accordance with the Florentine calendar. Although All Saints’ Day is now considered to occur one day after Halloween, the two holidays were once celebrated on the same day.

Symbols

On All Hallows’ eve, many Irish and Scottish people have traditionally placed a candle on their western window sill to honor the departed. Other traditions include carving lanterns from turnips or rutabagas, sometimes with faces on them, as is done in the modern tradition of carving pumpkins. Welsh, Irish and British myth are full of legends of the Brazen Head, which may be a folk memory of the ancient Celtic practice of headhunting. The heads of enemies may have decorated shrines, and there are tales of the heads of honored warriors continuing to speak their wisdom after death. The name jack-o’-lantern can be traced back to the Irish legend of Stingy Jack, a greedy, gambling, hard-drinking old farmer.^[17][18] He tricked the devil into climbing a tree and trapped him by carving a cross into the tree trunk. In revenge, the devil placed a curse on Jack, condemning him to forever wander the earth at night with the only light he had: a candle inside of a hollowed turnip. The carving of pumpkins is associated with Halloween in North America where pumpkins are both readily available and much larger- making them easier to carve than turnips.^[19] Many families that celebrate Halloween carve a pumpkin into a frightening or comical face and place it on their doorstep after dark. The American tradition of carving pumpkins preceded the Great Famine period of Irish immigration^{[20][dead link]} and was originally associated with harvest time in general, not becoming specifically associated with Halloween until the mid-to-late 1800s.^{[citation needed]}

The imagery surrounding Halloween is largely a mix of the Halloween season itself, works of Gothic and horror literature, in particular novels Frankenstein and Dracula, and nearly a century of work from American filmmakers and graphic artists,^[21] and British Hammer Horror productions, also a rather commercialized take on the dark and mysterious. Modern Halloween imagery tends to involve death, evil, the occult, magic, or mythical monsters. Traditional characters include the Devil, the Grim Reaper, ghosts, ghouls, demons, witches, goblins, vampires, werewolves, zombies, skeletons, black cats, spiders, bats, and crows.^[22]

Particularly in America, symbolism is inspired by classic horror films (which contain fictional figures like Frankenstein’s monster and The Mummy). Elements of the autumn season, such as pumpkins, corn husks, and scarecrows, are also prevalent. Homes are often decorated with these types of symbols around Halloween.

The two main colors associated with Halloween are orange and black.^[23]

Trick-or-treating and guising

Trick-or-treating is a customary celebration for children on Halloween. Children go in costume from house to house, asking for treats such as candy or sometimes money, with the question, “Trick or treat?” The word “trick” refers to a (mostly idle) threat to perform mischief on the homeowners or their property if no treat is given. In some parts of Ireland and Scotland children still go guising. In this custom the child performs some sort of show, i.e. sings a song or tells a ghost story, in order to earn their treats.

Costumes

Halloween costumes are traditionally those of monsters such as ghosts, skeletons, witches, and devils. They are said to be used to scare off demons. Costumes are also based on themes other than traditional horror, such as those of characters from television shows, movies, and other pop culture icons.

Costume sales

BIGresearch conducted a survey for the National Retail Federation in the United States and found that 53.3% of consumers planned to buy a costume for Halloween 2005, spending $38.11 on average (up $10 from the year before). They were also expected to spend $4.96 billion in 2006, up significantly from just $3.3 billion the previous year.^[24]

UNICEF

“Trick-or-Treat for UNICEF” has become a common sight during Halloween in North America. Started as a local event in a Philadelphia suburb in 1950 and expanded nationally in 1952, the program involves the distribution of small boxes by schools (or in modern times, corporate sponsors like Hallmark, at their licensed stores) to trick-or-treaters, in which they can solicit small-change donations from the houses they visit. It is estimated that children have collected more than $118 million (US) for UNICEF since its inception. In Canada, in 2006, UNICEF decided to discontinue their Halloween collection boxes, citing safety and administrative concerns; after consultation with schools, they instead redesigned the program.^[25][26]

Games and other activities

This section is missing citations or needs footnotes. Please help add inline citations to guard against copyright violations and factual inaccuracies. (October 2008)

There are several games traditionally associated with Halloween parties. One common game is dunking or apple bobbing, in which apples float in a tub or a large basin of water and the participants must use their teeth to remove an apple from the basin.^[27] A variant of dunking involves kneeling on a chair, holding a fork between the teeth and trying to drop the fork into an apple^[28]. Another common game involves hanging up treacle or syrup-coated scones by strings; these must be eaten without using hands while they remain attached to the string, an activity that inevitably leads to a very sticky face.

Some games traditionally played at Halloween are forms of divination. A traditional Irish and Scottish form of divining one’s future spouse is to carve an apple in one long strip, then toss the peel over one’s shoulder. The peel is believed to land in the shape of the first letter of the future spouse’s name.^[29] Unmarried women were told^[who?] that if they sat in a darkened room and gazed into a mirror on Halloween night, the face of their future husband would appear in the mirror. However, if they were destined to die before marriage, a skull would appear. The custom was widespread enough to be commemorated on greeting cards^[30] from the late 19th and early 20th centuries.

The telling of ghost stories and viewing of horror films are common fixtures of Halloween parties. Episodes of TV series and specials with Halloween themes (with the specials usually aimed at children) are commonly aired on or before the holiday, while new horror films, are often released theatrically before the holiday to take advantage of the atmosphere.

Haunted attractions

Haunted attractions are entertainment venues designed to thrill and scare patrons; most are seasonal Halloween businesses. Origins of these paid scare venues are difficult to pinpoint, but it is generally accepted that they were first commonly used by the Junior Chamber International (Jaycees) for fundraising.^[31] They include haunted houses, corn mazes, and hayrides,^[32] and the level of sophistication of the effects has risen as the industry has grown. Haunted attractions in the United States bring in an estimate $300–500 million each year, and draw some 400,000 customers, although trends suggest a peak in 2005^[31]. This increase in interest has led to more highly technical special effects and costuming that is comparable with that in Hollywood films.^[33]

Foods

Because the holiday comes in the wake of the annual apple harvest, candy apples (known as toffee apples outside North America), caramel or taffy apples are a common Halloween treat made by rolling whole apples in a sticky sugar syrup, sometimes followed by rolling them in nuts.

At one time, candy apples were commonly given to children, but the practice rapidly waned in the wake of widespread rumors that some individuals were embedding items like pins and razor blades in the apples.^[34] While there is evidence of such incidents,^[35] they are quite rare and have never resulted in serious injury. Nonetheless, many parents assumed that such heinous practices were rampant. At the peak of the hysteria, some hospitals offered free x-rays of children’s Halloween hauls in order to find evidence of tampering. Virtually all of the few known candy poisoning incidents involved parents who poisoned their own children’s candy, and there have been occasional reports of children putting needles in their own (and other children’s) candy in need of a bit of attention.^{[citation needed]}

One custom that persists in modern-day Ireland is the baking (or more often nowadays, the purchase) of a barmbrack (Irish: báirín breac), which is a light fruitcake, into which a plain ring, a coin and other charms are placed before baking. It is said that those who get a ring will find their true love in the ensuing year. This is similar to the tradition of king cake at the festival of Epiphany.

List of foods associated with the holiday:

• Barmbrack (Ireland)
• Bonfire toffee (Britain)
• Candy apples
• Candy corn (North America)
• Caramel apples
• Caramel corn
• Colcannon (Ireland)
• Pumpkin, pumpkin pie, pumpkin bread
• Roasted pumpkin seeds
• Roasted sweet corn
• Soul cakes
• Novelty candy shaped like skulls, pumpkins, bats, worms, etc.

Around the world

With its roots in Celtic cultures, Halloween is not celebrated in all countries and regions of the world, and among those that do the traditions and importance of the celebration vary significantly. Celebration in the United States has had a significant impact on how the holiday is observed in other nations. The history of Halloween traditions in a given country also lends context to how it is presently celebrated.

Religious perspectives

In North America, Christian attitudes towards Halloween are quite diverse. In the Anglican Church, some dioceses have chosen to emphasize the Christian traditions of All Saints’ Day,^[36][37] while some other Protestants celebrate the holiday as Reformation Day, a day to remember the Protestant Reformation.^[38][39]

Many Christians ascribe no negative significance to Halloween, treating it as a purely secular holiday devoted to celebrating “imaginary spooks” and handing out candy. Halloween celebrations are common among Roman Catholic parochial schools throughout North America and in Ireland. In fact, the Roman Catholic Church sees Halloween as having a Christian connection.^[40] Father Gabriele Amorth, a Vatican-appointed exorcist in Rome, has said, “[I]f English and American children like to dress up as witches and devils on one night of the year that is not a problem. If it is just a game, there is no harm in that.”^[1]

Most Christians hold the view that the tradition is far from being “satanic” in origin or practice and that it holds no threat to the spiritual lives of children: being taught about death and mortality, and the ways of the Celtic ancestors actually being a valuable life lesson and a part of many of their parishioners’ heritage.^[41] Other Christians feel concerned about Halloween, and reject the holiday because they believe it trivializes (and celebrates) “the occult” and what they perceive as evil.^[2] A response among some fundamentalists in recent years has been the use of Hell houses or themed pamphlets (such as those of Jack T. Chick) which attempt to make use of Halloween as an opportunity for evangelism.^{[42][dead link]}

Some consider Halloween to be completely incompatible with the Christian faith^[43] due to its origin as a pagan “Festival of the Dead.” In more recent years, the Roman Catholic Archdiocese of Boston has organized a “Saint Fest” on the holiday.^[42] Many contemporary Protestant churches view Halloween as a fun event for children, holding events in their churches where children and their parents can dress up, play games, and get candy. Jehovah’s Witnesses do not celebrate Halloween for they believe anything that originated from a pagan holiday should not be celebrated by true Christians.^[44]

Religions other than Christianity also have varied views on Halloween. Celtic Pagans consider the season a holy time of year.^[45] Celtic Reconstructionists, and others who maintain ancestral customs, make offerings to the Gods and the ancestors.^[45]

Some Wiccans feel that the tradition is offensive to “real witches” for promoting stereotypical caricatures of “wicked witches”.^[3] Traditional Judaism frowns upon the celebration of Halloween.”^[46]

In Arab countries where it is celebrated, devotion is given to St. Barbara.

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The Red Flags Rule:

Frequently Asked Questions

The Red Flags Rule requires many businesses and organizations to implement a written Identity Theft Prevention Program to detect the warning signs – or “red flags” – of identity theft in their day-to-day operations.  The staff of the Federal Trade Commission (FTC) has heard from companies across the country that are developing Programs.  Their questions – and the FTC’s answers – may help you develop a Program for your business.

These FAQs relate only to the Red Flags Rule and don’t address the applicability of other laws.  If you work for a bank, federally chartered credit union, or savings and loan, check with your federal regulatory agency for guidance.  The FAQs represent the opinions of the FTC staff, and aren’t binding on the Commission.  FTC staff will update these FAQs to address new questions from businesses.

A.  General Questions

About the Red Flags Rule

<!–

1. Where can I find the Red Flags Rule?
2. I’m not an attorney.  Where can I find plain-language guidance on complying with the Rule?

–>

B.  Who’s Covered by the

Red Flags Rule?

<!–

1. What types of businesses and organizations are covered by the Red Flags Rule?
2. Do all creditors and financial institutions need to have a written Identity Theft Prevention Program?
3. Is my coverage under the Red Flags Rule based on whether I pull credit reports or collect personal information like Social Security Numbers?
4. Am I a creditor because I accept certain forms of payment – say, checks, credit or debit cards, or automatic account debits – even if I don’t extend or arrange for credit myself?
5. Our clients pay a retainer before we provide services.  Although we may send an invoice for our charges, we satisfy it by drawing on the retainer.  Does this make us a creditor under the Red Flags Rule?
6. My law firm brings cases on a contingency basis.  Does this type of fee arrangement make me a creditor under the Red Flags Rule?
7. What does it mean to “regularly” extend credit?
8. Am I a creditor under the Rule if I extend credit to other businesses?
9. Do I have covered accounts if I’m a business creditor?
10. Am I a creditor if I regularly refer customers to third parties for credit?
11. I regularly arrange for the extension, renewal, or continuation of credit for my customers, so I’ve determined I’m a “creditor” under the Red Flags Rule. Do I need to have a written Identity Theft Prevention Program?
12. Our company offers individual retirement plans that allow participants to get loans from their own plan account.  Does that make us or the plan a creditor under the Rule?
13. If our company meets the definition of a “financial institution” or “creditor,” are the individual retirement accounts we make available to our employees considered “covered accounts” that must be included in our written Identity Theft Prevention Program?
14. Am I a creditor if I offer my employees health care flexible spending accounts that reimburse them for elected amounts that are more than they’ve contributed to date?  Am I a creditor if I serve as a third-party administrator that maintains those accounts for employees of other companies?
15. Are we a “financial institution” under the Red Flags Rule if we have accounts for our clients and offer a way for them to make payments or transfers to third parties with a debit card, check, or wire transfer?

–>

C.  The Red Flags Rule and

Government Agencies,

Non-Profit Organizations,

and Schools

<!–

1. Does the Red Flags Rule apply to government agencies and non-profit organizations?
2. What about municipalities, cities, or counties that send tax bills, issue parking tickets, or impose fines?  Are they “creditors” under the Rule?
3. What if I work for a municipality, city, or county, and we’ve already determined our activities fall within the Rule’s definition of “creditor” or “financial institution”?  Do our taxes, fines, etc., become “covered accounts” under the Red Flags Rule?
4. If we provide a mandatory municipal service that a customer can’t decline – like sewage – are we considered a “creditor” under the Rule?
5. Are schools that regularly offer tuition payment plans creditors under the Rule?

–>

D.  Designing Your

Identity Theft Prevention Program

<!–

1. Do creditors or financial institutions have to develop an Identity Theft Prevention Program if they already comply with data security requirements like the Health Insurance Portability and Accountability Act (HIPAA) or the Gramm-Leach-Bliley Act (GLB)?
2. Does the Rule require that I have specific practices or procedures in my Program – like identifying a particular red flag or reporting suspected identity theft?
3. Does the Red Flags Rule require me to check photo IDs of my customers?  If I check photo IDs, should I keep copies?
4. Does the Red Flags Rule require that I use Social Security numbers to verify my customers’ identity?
5. How do my obligations under other laws affect the implementation of my Identity Theft Prevention Program?
6. Under what circumstances should I contact law enforcement?  Who handles identity theft?
7. Are there samples or templates to help me set up my Program?
8. Is there a Red Flags certification or accreditation that will ensure our Program complies with the Rule?
9. We’re a creditor that regularly arranges for our customers to get credit from third parties and we have covered accounts.  What should our Identity Theft Prevention Program look like?
10. Does the FTC have a sample training policy for employees?
11. What if we hire service providers?  If our business has to have a Program under the Rule, do our service providers need a Program, too?

–>

E.  Red Flags Rule

Compliance and Enforcement

November 2008
Kevin D. Lyles

You may be surprised to learn that your business must comply with the new identity theft Red Flag Rules. Not only are credit card companies and financial institutions subject to these rules, but any company that regularly extends or merely arranges for the extension of credit is also subject to them. Thus, finance companies, mortgage brokers, automobile dealers, telecommunications companies, and utility companies, among others, will have to comply with the Red Flag Rules. If your company extends or arranges for the extension of credit, the Red Flag Rules require you to have an identity theft prevention program.

Background

On December 4, 2003, the President signed into law the Fair and Accurate Credit Transactions Act (“FACTA”). FACTA was enacted by Congress to provide consumers with increased protection from identity theft. The regulations directed six agencies to jointly “establish and maintain guidelines . . . [that] identify patterns, practices, and specific forms of activity that indicate the possible existence of identity theft.”[1] Accordingly, the six agencies published the final regulations on November 9, 2007, and those regulations became effective January 1, 2008,[2] with a mandatory compliance date of November 1, 2008.[3]

On October 22, 2008, one of the six agencies, the Federal Trade Commission (“FTC”), announced that it will suspend enforcement of the Red Flag Rules until May 1, 2009, to give creditors and financial institutions additional time in which to develop and implement written identity theft prevention programs. The FTC’s delay in enforcement, however, does not affect the other federal agencies’ enforcement of the original November 1, 2008, compliance deadline for financial institutions subject to their oversight. But for most creditors, the FTC’s delay in enforcement will give them much-needed time to become compliant with the Red Flag Rules.

The final regulations contain three parts. First, they require covered entities to create a written identity theft program designed to detect, prevent, and mitigate identity theft in connection with certain covered accounts (the “Red Flag Rules” or the “Rules”). Second, the regulations require users of consumer reports to adopt policies for verifying identity when they receive a notice of address discrepancy from a consumer reporting agency. Third, the regulations impose requirements on debit and credit card issuers to implement procedures to assess the validity of address changes under certain circumstances. This Commentary focuses on only the Red Flag Rules portion of the regulations.

Covered Entities

The Red Flag Rules cover financial institutions and creditors that offer or maintain covered accounts. The breadth of the Rules comes from the broad definition of “creditors.” The term “creditor” means “any person who regularly extends, renews, or continues credit; any person who regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who participates in the decision to extend, renew, or continue credit.”[4] Consequently, many entities involved in the process of extending or maintaining credit must comply with the Red Flag Rules despite the fact that they do not extend credit themselves. For example, a retailer that takes applications for a third-party credit card or the car dealer that partners with a local bank branch to facilitate car loans will likely be subject to the Rules. Similarly, where nonprofit and government entities, such as many hospitals, defer payment for goods and services, they too will be considered creditors.

In addition to creditors, financial institutions are also required to comply with the Red Flag Rules. For purposes of the Rules, “financial institution” means a bank, savings and loan association, mutual savings bank, credit union, or any other person who, directly or indirectly, holds a transaction account belonging to a consumer.[5]

Under the Red Flag Rules, only those creditors and financial institutions that offer or maintain covered accounts are required to develop and implement an identity theft prevention program. A “covered account” is “(i) [a]n account that a financial institution or creditor offers or maintains, primarily for personal, family, or household purposes, that involves or is designed to permit multiple payments or transactions . . . and (ii) any other account . . . for which there is a reasonably foreseeable risk to customers . . . from identity theft . . . .”[6] Covered accounts include credit card accounts, mortgage loans, automobile loans, margin accounts, cell phone accounts, utility accounts, and checking and savings accounts. In determining whether the Red Flag Rules apply, a company should consider the types of accounts it offers, the methods it provides to open its accounts, the methods it provides to access its accounts, and its previous experiences with identity theft.[7] Additionally, the company should periodically perform a reassessment of all of its accounts to determine whether they are covered accounts that trigger the application of the Rules.

Designing a Program

Companies subject to the Red Flag Rules must design and implement a written identity theft prevention program that is designed to detect, prevent, and mitigate identity theft in connection with the opening of a covered account or any existing covered account.[8] The Rules do not specify the contents of the program that must be adopted. An Appendix to the Rules contains Guidelines to assist companies in creating and maintaining their programs. The Rules require that the Guidelines be considered, but companies are free to tailor their programs as they see fit. The Rules give companies a great deal of flexibility, requiring merely that a company design and implement a program that is appropriate to the size and complexity of the company and the nature and scope of its activities.

The Red Flag Rules do require identity theft prevention programs to include “reasonable policies and procedures” to identify relevant red flags and incorporate them into the program, to detect those red flags, to respond appropriately when red flags are detected, and to ensure that the program is updated periodically. Each of these elements is discussed below.

Identify Relevant Red Flags. The first step in creating an identity theft prevention program, as required by the Red Flag Rules, is to determine which red flags are relevant to the company and to incorporate those red flags into its program.[9] “Red flags” are patterns, practices, or specific activities that indicate the possible existence of identity theft in connection with a covered account. The company should examine the covered accounts it currently offers or maintains and identify potential sources of red flags. A Supplement to the Rules sets forth 26 examples of potential red flags. While not all 26 of the example red flags must be incorporated, the company should seriously consider each example and have legitimate reasons for not incorporating any of them in the final written program. The company also should take into account its previous experience with identity theft in determining the appropriate red flags for its program. Red flags may include the following:

• An application that appears to have been forged, altered, or destroyed and reassembled.
• A consumer report that includes a fraud alert, credit freeze, or address discrepancy.
• A change-of-address notice that is followed shortly by a request for a new credit card, bank card, or cell phone.
• A Social Security number supplied by an applicant that is the same as that submitted by another person opening an account.
• An address or telephone number supplied by an applicant that is the same or similar to the account number or telephone number submitted by an unusually large number of other persons.
• Notification of the financial institution or creditor that the customer is not receiving account statements.
• Use of an account that has been inactive for a reasonably lengthy period of time.

Detect Red Flags. The company should implement procedures to detect the identified red flags. The company should be sure to verify the identity of persons opening new covered accounts and should authenticate customers with existing covered accounts.[10] For guidance, the company can refer to the verification procedures set forth in the Customer Identification Program rules that apply to financial institutions.[11

Establish Response Procedures. The company should develop appropriate policies and procedures to respond to any red flags that are detected. The responses, which should be commensurate with the degree of risk posed, may include monitoring an account, contacting the customer, changing passwords, or notifying law enforcement. In some situations, it may be appropriate to determine that no response is necessary.[12]

Ensure That the Program Is Updated Periodically. It is important for the company to periodically update its program to reflect changes in risks. The company must remain up to date with changes in identity theft, and as necessary, it must incorporate new methods of combating identity theft. Additionally, the company should be aware that risks may change when it alters its business arrangements or modifies the types of accounts it offers.[13]

Methods for Administering the Program

Approval of the initial written program must be obtained from the company’s board of directors or an appropriate committee thereof.[14] Oversight of the implementation and administration of the program must be done by the board, a board committee, or a designated employee at the level of senior management.[15] This oversight also includes reviewing reports and approving material changes to the program.[16] If the company has any arrangements with service providers, it must exercise oversight of those providers.[17] This can be done, for example, by requiring service providers to have their own Red Flag programs or by requiring them to follow the company’s program.

Consequences of Noncompliance

Failure to comply with the Red Flag Rules can result in various penalties. Consequences may include a civil money penalty for each violation, regulatory enforcement action, and negative publicity.[18] Although the Rules do not allow for any private legal action in the event of a violation,[19] there is the potential for private-plaintiff lawsuits under other laws because a violation of federal rules may itself be a violation of state laws. These state laws may permit actions by consumers or state attorneys general. In any event, it is likely that, over time, the Red Flag Rules will become a de facto standard of care applied to determine whether a company has negligently allowed a customer’s identity to be stolen.

Conclusion

In general, the new Red Flag Rules require companies with covered accounts to take reasonable measures to ensure the safety of sensitive consumer information. The Rules are intended to detect, prevent, and mitigate the risk of identity theft, but they do not require companies to adopt any particular policy or procedure. Rather, companies can scale their programs to match the size, complexity, and nature of their businesses. The process a company follows in adopting its identity theft prevention program will go a long way toward establishing that the program is reasonable. At a minimum, the company should be capable of justifying the policies and procedures it adopts by demonstrating that it has seriously considered the pertinent risks and has attempted to minimize them.

Lawyer Contact

For further information, please contact your principal Firm representative or the lawyer listed below. General email messages may be sent using our “Contact Us” form, which can be found at www.jonesday.com.

Kevin D. Lyles
1.614.281.3821
// <![CDATA[
PrintMail('kdlyles','jonesday.com','kdlylesjonesday.com', ' ');
// ]]>kdlyles@jonesday.com

This Commentary was prepared with assistance from Corey Dickey, a summer associate in the Columbus Office.

Notice of Transfer and Release of Liability

What is a Notice of Transfer and Release of Liability?

The Notice of Transfer and Release of Liability (NRL) is the form used to notify the Department of Motor Vehicles (DMV) that you have sold or transferred your vehicle or vessel to another party. It is used only when the registered ownership of the vehicle or vessel has changed. Legal owner transfers (transfers between lenders or removal of a lienholder from the title) do not require an NRL.

How Does the Notice of Transfer and Release of Liability Protect Me?

When this form is properly completed and the information is recorded by DMV, liability for parking and/or traffic violations and civil litigation resulting from operation after the date of sale becomes the responsibility of the subsequent purchaser.

When Does the Law Require Me to Notify DMV?

Whenever you sell or transfer your vehicle or vessel, Vehicle Code §5900 states that you must notify DMV within five calendar days following the sale or transfer.

Does the NRL Remove My Name from DMV’s Records?

No. Only the buyer’s application for transfer, using the endorsed title received from you, can do that. However, when the information required on the NRL is received by DMV, you are no longer responsible for civil or criminal actions arising with the vehicle after the date of sale.

For example, you will not be liable for:

• parking or traffic violations resulting from operation of the vehicle after the sale or transfer date, or
• civil litigation resulting from use of the vehicle after the date of sale.

NOTE: In the case of a suit or complaint, the court is responsible for determining if you have complied with the law and are exempt from civil and/or criminal liability.

Additionally, when the NRL information is received by DMV and the vehicle record is marked, no further renewal billing notices will be mailed to you for the reported vehicle.

What Information is Needed on the NRL?

The Vehicle Code requires you to provide DMV with the following information:

• Date of sale
• Owner of record’s name and address
• Buyer or transferee’s name and address
• Description of the vehicle or vessel including the
  • vehicle (or vessel hull) identification number
  • year model
  • vehicle make or vessel builder
  • vehicle license plate or vessel CF number
• Vehicle odometer reading as of the sale or transfer date

If any of this information is missing, erroneous, or illegible, the department may be unable to update the computer record and/or these conditions may disqualify your liability exemption.

Must I Complete the NRL Myself?

No. However, completing and mailing the NRL personally is the best way to ensure that DMV gets all the information in a timely manner. You may have someone else complete and file the NRL on your behalf if they are in possession of the vehicle at the time of sale. For example, if your brother sells your car for you while you are away on vacation, he can complete and file the NRL with the department.

NOTE: For your protection it is strongly suggested that you make a photo copy of the completed REG 138 form for your file.

Should I Mail the NRL?

Yes! This is the best way to notify DMV. Mail the completed form to:

Department of Motor Vehicles
P.O. Box 942859
Sacramento, CA 94259-0001