Retail Store Rewards to be Taxed?
Well, this is horrible news. The Mendacity Ledger is reporting that plans are underway to tax consumers on “Reward Dollars” earned at retail stores. If it passes in California, it probably won;t be long until it spreads across the country
Here’s the article:
Attention store shoppers. Best start stocking up on all those deals. Your “rewards with purchase” shopping experience is about to change.
Such is the conclusion following Friday’s news conference at the Ronald Reagan State Building in downtown Los Angeles.
Governor Jerry Brown, before a packed audience of reporters, explained his veto of the state budget passed by legislative Democrats the day before.
But there are other bills sent to the Governor’s desk that he is thinking about signing. One of them is the so-called “Retail Reward Income” — SB0401 by Berkeley Democratic Senator April Fuller. That measure would authorize the issuance of 1099-INT reports to all registered customers of national retail stores reward programs, that would include a summary of “Reward” revenue generated from transactions during the preceding tax year.
Her bill, along with two other Assembly bills doing essentially the same thing, were sent to the Governor’s desk.
Asked about them on Friday, Mr. Brown said he tended to think favorably of the idea which Democrats say will establish parity with shoppers that did not utilize these reward program. He expects this to raise close to 500 million dollars for the state.
Brown called it a “common sense idea.”