We all know about the three “R’s”, the alteration
reading, writing and arithmetic. However, what do you know about the
three “C’s”? Never heard about the three “C’s”, well we all better
start learning.
The California Chamber of Commerce wants you to know your three
“C’s”. With the projected fourteen billion dollar deficit facing
California knowing your three “C’s” may go a long way in allowing
you to keep your company’s profits.
Politicians promise not to raise our taxes. In California it
takes a two-thirds vote of the Legislature to raise taxes. However,
the Legislature needs only a majority vote to establish a fee.
Whether the State government calls it a fee or a tax it still
takes your dollars. To be a fee it must pass the three “C’s” test or
the courts will disallow it.
C #1 IS CONNECTION
There must be a reasonable connection between
the fee and the service it
is supposed to fund.
C #2 IS COST
The fee must reasonable reflect the actual cost in providing the
service.
C #3 IS CONTROLS
There must be controls so that fees collected are limited only to
funding that program.
If you know your three “C’s” you can spot the tax disguised as a
fee and as a chamber member you can alert our organization so that
we can act on your behalf.
KNOWING THE THREE “R’s” MAKES YOU EDUCATED
KNOWING THE THREE “C’s” MAKES YOU PROFITABLE
