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Headlines---
----Won't
Affect Traditional Muni/Gov't Leasing
says
AGLF
Key's
2003 net income was $903 million
LeaseNOW
Acquires Motor Coach Financial
Fitch
Upgrades Marlin Leasing Receivables
Republic
Subsidiary Expands Aircraft Portfolio
Streamlined
Sales Tax Project Report
by
Dennis Brown, ELA
######## surrounding the article denotes it is a “press
release”
-------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
|
Seeking
Sales Representative preferably in Midwest area, will consider
out of area. Minimum 3+ years vendor experience. No requirement
for market type. Please contact Susan M. Adamatis, Vice President
- 800/669-7527 ext 1255 or About the company: www.netlease.com |
Classified
Ads-- Sales Manager
Sales
Manager: Atlanta, GA
30
years in transportation Finance with strong management/ sales background.
Represented company on national & region markets. Started two successful
operations- produce profits and growth. Email:pml@mindspring.com
Sales
Manager: Dallas/Fort Worth, TX.
Domestic-int'l
exp. Small to middle ticket. 24 yrs with Fortune 500 firms(2). Consistently
achieves margin/ volume goals. Email:
mfdp1101@charter.net
Sales
Manager: New York, NY
I
have over 25 years owning an independent leasing company that specialized
in truck leasing. Tow trucks, Limos, ambulances, tractors, etc.. Email:rfleisher@rsrcapital.com
Sales
Manager: Pennsauken, NJ.
17
Years Leasing in all capacities from CSR and Collections to National
Sales Management and Vice President Vendor Development. Exceptional
People Skills. Many industry references. email: cherfurth1@aol.com
Sales
Manager: Portland, OR. 18+ yrs w/bank leasing company. Supervised
14- 20 sales people. Willing to relocate for the proper position. Email:pthygeson@netscape.net
Sales
Manager: Seattle, WA
Senior
level sales professional w/ (20) plus experience in mid market financing
& leasing. The last (8) plus years being self employed in middle
market brokerage. Email:markhenley@qwest.net
Full
listing of “clean” postings at: http://64.125.68.90/LeasingNews/JobPostings.htm
_____________________________________________________________________________
Letters---We
Get eMail
---
Keep
up the good work. Your efforts are appreciated. I would
gladly pay again for a subscription (and was surprised that paying subscribers
are the minority here). Keep the press releases, keep the day
in history, keep reporting on the bad apples
so we know who to stay away from.
Oh
and my comment on keeping advance rentals....I personally think
it is wrong. If the deal doesn't get funded ya don't get paid,
period. Running credit reports, reviewing credit, spending time
trying to get deals done, phone bills, overnight shipping charges etc all
the expenses that go along with our jobs, they are just that :THE
COST OF DOING BUSINESS. Like it or not some deals just don't
get done, and to keep clients advance rentals, deposits or whatever
they want to call it, is just wrong.
Although
I don't get the time to read the newsletter everyday, keep it coming.
Carol
Suggs
---
The individual who
chose not to reveal himself because of his comments on business practices
such as Pre-Approvals, Interest Rate Quotes based on simple interest,
implied FMV, etc. has hit the nail on the head. That he has not revealed
his name is too bad as he is one of those individuals that I would enjoy
working with.
It is amazing how many deals are quoted at rates that only a very
large company would qualify for and a small business somehow qualifies
for after being in business for 3 years. Too many people
use the same business operating methods he mentioned that cast all of
us in a poor light.
Jerry Bernardy
Commonwealth Capital
---
#1.
Keep up the good work. Don't let anyone stop you from sending the Leasing
News every day!
#2.
I have received 4 NIGERIAN Oil Ministry scam letters in the past week.
If I can get the deal done on all 4 of them, I will net over $60 million
USD. I will treat all of the subscribers to your newsletter to free
drinks at the bar of their choosing for an entire month (no well or
bar brands-only the good stuff!) after I get my money from the Nigerian
Banks!
Sincerely,
Joseph
Leslie
President
FCI
Financial Services, Inc.
--
Thanks for the Leasing
News. I read it every day. I have a question about the top
sites list. It appears that the lower numbered sites have higher "hit"
numbers. I don't understand.
The number you have
corresponding to number 1 is
lower than the number the number you have corresponding to number 10.
Look at how it prints out on your newsletter.
( name with held
)
10: 10. 672,497
741,086 www.cfa.com
Commercial Finance Association
1. 74,058 69,465
www.leasingnews.org
Leasing News
Out of one million
websites, number ten on this list is ranked 672,497, meaning out
of one million websites, Alexa says it is rated receiving visitors very
low, not in the top 2/3rds.
Leasing News is 75,058,
meaning in the top ten percent of the one million web sites.
Unfortunately, we
are not even in the top 500, or perhaps top 1,000 web sites. We write
only about the Equipment Leasing Industry.
The main purpose
is to show the relationship to other financial/leasing websites. When
we started this comparison, Leasing News was number nine and in the
last four to five months has been number one, in the Alexa-Google, explorer
rankings ( Netscape and Opera
don't have Alexa
) and also does not include Apple or Linux.
It is not an "official"
web trend or scientific, but just an "indicator."
Here is the Alexa
top 500:
http://www.alexa.com/site/ds/top_500
### Press Release
##############################
----Won’t
Affect Traditional Muni/Gov’t Leasing says AGLF
Association for Governmental
Leasing and Finance Press Release
The Department of
the Treasury on January 13, 2004 announced legislative proposals
contained in the
Fiscal Year 2005 Budget “that are designed to close loopholes, halt
several abusive tax avoidance transactions, and simplify the tax code.”
The official press release - Treasury Announces New Budget Proposals
New Proposals Close Loopholes, Stop Abusive Tax Avoidance was posted
to the Department of the Treasury’s website on January 13, 2004:
http://www.treasury.gov/press/releases/js1096.htm
Following the announcement
on Tuesday, the Association for Governmental Leasing and
Finance (AGL&F)
was contacted by several related industry organizations and the media
to respond to the proposal(s) and specifically the following paragraph:
Stop Abusive Leasing
Transactions with Tax-Indifferent Parties – Taxpayers increasingly have
used purported leasing transactions to “acquire” significant tax benefits
from a tax-indifferent party, such as a municipal transit authority
or foreign government, in exchange for a modest fee. These transactions
do not involve any useful economic activity, such as the acquisition
or financing of business assets, and instead simply move a tax benefit,
including depreciation,
from a party that
cannot use it (the municipality or foreign government) to a party that
can (the taxpayer). Congress sought to limit these transactions in 1984
but these rules have proved ineffective over time. The Administration’s
proposal would sharply limit the tax benefits claimed by the taxpayer
in these transactions. 10-year revenue effect: $33.725 billion.
The Association for
Governmental Leasing and Finance respectfully submits the following
statement in response as it relates to the AGL&F and the impact
on its membership:
While the current
budget proposal, which purports to be designed to "stop abusive
leasing transactions with tax-indifferent parties," certainly could
have a significant adverse impact on operating leases between lessors
and tax-exempt entities, the focus of the Association for Governmental
Leasing and Finance is primarily related to traditional tax-exempt municipal
and 501(c)(3) lease purchase
transactions.
In these transactions municipal entities, or 501(c)(3)
entities through
municipal entities, enter into lease-purchase agreements with vendors
or other financing sources in order to acquire or construct real or
personal property for use by the municipal entity or 501(c)(3) entity.
Typically these transactions are treated as "sales" rather
than leases for federal income tax purposes. Accordingly, these traditional
tax-exempt municipal and 501(c)(3) lease-purchase transactions would
not appear to be affected by the current
budget proposal.
FOR FURTHER INFORMATION,
PLEASE CONTACT
GRAHAM HAUCK, EXECUTIVE
DIRECTOR: 202.742.2453
1222 Twenty-Third
Street, NW • Suite 200 • Washington, DC 20037-1174 • (202) 742-AGLF
(2453) • FAX (202) 833-3636
EMAIL: info@aglf.org
• INTERNET: www.aglf.org
[Top]
### Press Release
##################################
KeyCorp
Reports Fourth Quarter and 2003 Earnings
- EPS of $0.55 for
the fourth quarter and $2.12 for the full year - Net
interest margin up;
loan growth remains challenging - Core deposits increase for the sixth
consecutive quarter - Expenses unchanged despite higher severance costs
- Continued improvement in asset quality - Strong capital position;
4 million shares repurchased
CLEVELAND,
-- KeyCorp (NYSE: KEY - News)
announced fourth quarter net income of $234 million, or $0.55 per
diluted common share. These results compare with net income of $227
million, or $0.53 per share, for the third quarter of 2003, and $245
million, or $0.57 per share, for the fourth quarter of 2002.
Key's 2003 net income
was $903 million, or $2.12 per diluted common share, compared with $976
million, or $2.27 per share in 2002.
"Key reported
solid fourth quarter financial results," said Chairman and
Chief Executive Officer
Henry L. Meyer III. "We improved our net interest margin, continued
to grow core deposits, had a stronger performance from our market-sensitive
businesses and managed our expenses effectively. Although we saw no
improvement in commercial loan growth during the quarter, we were encouraged
by the continued steady growth in our commercial lease financing and
home equity lending businesses.
"In addition,
Key's asset quality trends remain positive. Nonperforming
loans fell by $101
million, marking the fifth consecutive quarterly
decrease.
"We are optimistic
that 2004 results will be better than 2003's, given the positive momentum
gained in the fourth quarter and a gradually improving economy. For
2004, we expect earnings to be in the range of $.52 to $.55 pershare
for the first quarter and $2.25 to $2.35 per share for the full year."
Summary of Consolidated
Results Taxable-equivalent net interest income improved modestly to
$693 million for the fourth quarter of 2003 from $690 million in the
previous quarter. Key's net interest margin of 3.78% rose 5 basis points,
while average earning
assets decreased
by $510 million. Declines in the levels of commercial loans and securities
more than offset continued growth in commercial lease financing and
home equity lending. Compared with the fourth quarter of 2002, taxable-
equivalent net interest income decreased by $31 million, as the negative
effect of a lower net interest margin more than offset the effect of
a 1% increase in average earning assets.
Key's noninterest
income was $466 million for the fourth quarter of 2003, up from $463
million for the third quarter. Stronger financial markets contributed
to a $16 million increase in investment banking income and an $8 million
increase in income from trust and investment services. Noninterest income
also benefited from a $10 million decrease in losses incurred on the
residual values of leased vehicles and equipment.
These positive results were offset in part by a $10 million decrease
in income from dealer trading and derivatives and a $17 million reduction
in net gains from loan securitizations and sales; third quarter results
benefited from Key's annual education loan securitization. Compared
with the year-ago quarter, noninterest income grew by $20 million, reflecting
a $12 million decrease in net losses incurred on the residual values
of leased vehicles and equipment.
In addition, Key
had $8 million of net gains from principal investing in the fourth quarter
of 2003, compared with $13 million of net losses in the fourth quarter
of 2002. These improvements were partially offset by lower income from
service charges on deposit accounts.
Noninterest expense
was $698 million for the fourth quarter of 2003 and essentially unchanged
from the prior quarter, despite a $9 million increase in severance expense.
Compared with the fourth quarter of 2002, noninterest expense grew by
$30 million, or 4%. A $25 million rise in personnel expense accounted
for most of the growth from the year-ago quarter with the largest increases
occurring in pension costs (up $7 million), stock-based compensation
(up $6 million) and severance expense (up $5 million). Asset Quality
Key's provision for
loan losses was $123 million for the fourth quarter of 2003, equal to
that for the third quarter of 2003 and down from $147 million for the
year-ago quarter.
Net loan charge-offs
for the quarter totaled $123 million, or 0.78% of
average loans, compared
with $123 million, or 0.77%, for the previous
quarter and $186
million, or 1.18%, for the year-ago quarter. Included in fourth quarter
2002 net charge-offs are $39 million of losses charged to the now depleted
portion of Key's allowance for loan losses that had been segregated
in connection with management's decision to discontinue many credit-only
relationships in the leveraged financing and nationally syndicated lending
businesses and to facilitate sales of distressed loans in other portfolios.
During the fourth
quarter of 2003, Key's nonperforming loans decreased by $101 million
to $694 million, primarily due to reductions in the middle market, large
corporate, structured finance and commercial real estate portfolios.
Nonperforming loans represented 1.11% of loans outstanding at December
31, 2003, down from 1.27% at September 30, 2003, and 1.51% at December
31, 2002. Key's allowance for loan losses stood at $1.4 billion, or
2.24% of loans outstanding
at both December 31, 2003, and September 30,2003, compared with $1.5
billion, or 2.32% at December 31, 2002. At December 31, 2003, the allowance
for loan losses represented 203% of nonperforming
loans, compared with 177% at September 30, 2003, and 154% a year
ago.
Capital
Key's capital ratios
continued to exceed all "well-capitalized" regulatory
benchmarks at December
31, 2003. During the fourth quarter, risk-based capital ratios for certain
prior periods were restated to reflect a more precise risk weighting
of certain loans and a more precise measurement and risk weighting of
unfunded commitments.
Key's tangible equity
to tangible assets ratio was 6.94% at both December 31, 2003, and September
30, 2003, compared with 6.73% at December 31, 2002. This ratio is currently
above management's targeted range of 6.25% to 6.75%.Key's strong capital
position provides the company with the flexibility to take advantage
of future investment opportunities and to repurchase shares when appropriate.
During the fourth quarter, Key repurchased 4 million of
its common shares
under an authorization that allows for the repurchase of up to 25 million
shares.
At December 31, 2003, there were 21 million shares
remaining for repurchase
under that authorization.
[Top]
### Press Release
###################################
LeaseNOW Acquires
Motor Coach Financial
Warrendale, Pennsylvania
Bob Rod, CLP, President
and CEO of LeaseNOW, Inc. is pleased to announce that LeaseNOW has acquired
Motor Coach Financial, Inc., Guilford, Connecticut.
The merger was effective on January 1, 2004.
Raymond J. Murphy,
the president and principal shareholder of Motor Coach will serve as
the Executive Vice President of LeaseNOW, Inc.
Bob Rodi will continue as President and CEO of the merged companies
while Marina Rodi will continue remain as Secretary/Treasurer and CFO.
Commenting on the
merger, Rodi states "We are excited that we could complete the
acquisition of Motor Coach. Over
the past 8 years we have developed a very successful and lucrative niche
in the franchise industry. Aside from nearly doubling the size of LeaseNOW,
the acquisition and merger of Motor Coach now brings Ray Murphy's special
expertise in the transportation industry to LeaseNOW.
We believe that the transportation industry and related equipment
will be a strong performer as the economy continues to improve.
We will also target major franchise systems in the service sector
that use vehicles and other transportation equipment.
The acquisition of Motor Coach Financial will position us to
capitalize on yet another profitable niche business.
In addition Ray Murphy and I have had a very successful business
relationship as well as a close personal relationship since 1991. Ray's
superior salesmanship, entrepreneurial spirit, and financial resources,
make him a valuable partner in all aspects of our business. This acquisition
and merger was simply the next step in a long and profitable relationship."
With the acquisition
of Motor Coach, LeaseNOW will also take on the management of more $15MM
in transportation equipment assets that are owned or managed by Motor
Coach. Rodi states "The next logical step in
the development of our business was to acquire a portfolio, build our
asset base and strengthen our balance sheet.
We now have the opportunity to take over the management of a
seasoned, performing portfolio. This,
coupled with the short term management of our franchise portfolio, affords
us the opportunity to take the company to a new level and develop additional
expertise in portfolio and risk management".
About LeaseNOW:
Founded in 1988,
LeaseNOW is an Independent leasing and finance company headquartered
in Warrendale, PA. The company
has been a long time innovator in the development of automated credit
processing and scoring solutions. LeaseNOW
currently has Affiliate offices in Atlanta, Detroit Metro, Hartford,
and Orlando.
About Motor Coach:
Founded in 1997,
Motor Coach Financial specializes in the acquisition, finance, management
and disposition of vehicles and specialty transportation equipment. Over the past three years Motor Coach has developed
profitable relationships with trustees and insurers who have problem
portfolios resulting from leasing and finance companies that have defaulted
on securitizations.
### Press Release
##############################
Fitch
Upgrades Marlin Leasing Receivables III & V, LLC, Series 2000-1
& 2001-1
CHICAGO----Fitch
Ratings upgrades the following classes of securities for Marlin Leasing
Receivables III, LLC, Series 2000-1 (Marlin 2000-1) and Marlin Leasing
Receivables V, LLC, Series 2001-1 (Marlin 2001-1).
Marlin Leasing Receivables III, LLC, Series 2000-1(Marlin 2000-1)
-- Class A Equipment Contract Backed Notes are upgraded to 'A+'
from 'A';
-- Class B Equipment Contract Backed Notes are upgraded to 'A'
from 'BBB';
-- Class C Equipment Contract Backed Notes are upgraded to 'BBB'
from 'BB'.
Marlin Leasing Receivables V, LLC, Series 2001-1(Marlin 2001-1)
-- Class A Equipment Contract Backed Notes are upgraded to 'A+'
from 'A';
-- Class B Equipment Contract Backed Notes are upgraded to 'BBB+'
from 'BBB';
-- Class C Equipment Contract Backed Notes are upgraded to 'BB+'
from 'BB'.
In its review of the Marlin 2000-1 transaction, Fitch noted increasing
levels of credit enhancement available to the class A, B, and C notes.
The continued increase in credit enhancement is a result of better than
expected portfolio performance. As of December 31, 2003, 30+ day delinquencies
equal 3.69%, cumulative net losses are 3.78%, and the recovery rate
on previously defaulted contracts is 44.59%. In addition, the transaction
also benefits from a reserve account ($1,017,500), over-collateralization
($600,529), and expected future booked residual realizations.
Similarly, in its review of the Marlin 2001-1 transaction, Fitch
noted increasing levels of credit enhancement available to the class
A, B, and C notes. The continued increase in credit enhancement is a
result of better than expected portfolio performance. As of December
31, 2003, 30+ day delinquencies equal 2.89%, cumulative net losses are
2.78%, and the recovery rate on previously defaulted contracts is 40.42%.
In addition, the transaction also benefits from a reserve account ($1,265,000),
over-collateralization ($1,356,076), and expected future booked residual
realizations.
In addition to the aforementioned transactions, Fitch also rated
the Marlin 2002-1 and 2003-1. Both transactions, while demonstrating
fewer months of history are performing within expectations. Delinquency
and gross default rates remain relatively low, resulting in steadily
increasing levels of credit enhancement available to all classes.
Fitch will continue to closely monitor these transactions and may
take additional rating action in the event of changes in performance
and credit enhancement measures.
### Press Release
#############################################
REPUBLIC
SUBSIDIARY ANNOUNCES EXPANSION OF PORTFOLIO WITH ACQUISITION OF ADDITIONAL
AIRCRAFT AND ENGINES ON LEASE TO FIVE MAJOR NORTH AMERICAN AIRLINES
LINC Capital, Inc.,
a wholly owned subsidiary of Republic Financial Corporation, today announced
the expansion of its asset portfolio through an acquisition from a major
regional US commercial bank which included one RB211-535E4 (31611) on
lease to American Trans Air and the beneficial interests of trusts owning
one 757-225 (22207) on lease to America West, one 757-251 (23205) and
one DC10-30 (46579) on lease to Northwest Airlines, one 737-300 (23356)
and one MD82 (49478) on lease to Continental Airlines, and one 737-300
(23251) on lease to Southwest Airlines.
“The closing of this
deal in December 2003 completed a year in which Republic added fifteen
aircraft to its portfolio,” commented Ian Massey, President of Republic’s
Aviation & Portfolio Group. “These deals demonstrate the diversity
of Republic’s approach to the aviation market.” Several aircraft and
related engines were committed to a part-out and engine lease program.
The balance of the aircraft remains on lease together with the RB211
acquired in this latest deal.
About Republic Financial
Corporation
Republic Financial
Corporation, located in Aurora, Colorado, is a privately held investment
company specializing in aviation, equipment leasing portfolios, private
equity, structured finance transactions and distressed commercial debt,
and has invested in assets worth over $1 billion. Founded in 1971, Republic
has achieved commercial success by structuring creative financial solutions
and employing intensive due diligence and asset management to generate
profitable returns.
For additional information,
contact:
Republic Financial
Corporation
Mark Fabian, Senior
Director, Aviation & Portfolio Group
303.368.3408
mfabian@republic-financial.com
Sites of Reference:
http://www.republic-financial.com
CONTACT:
Sara Meaney
Republic Financial
Corporation
Phone Number: 303
923 2516
Fax Number: 303 923
2116
E-mail: smeaney@republic-financial.com
### Press Release
#####################################
-----------------------------------------------------------------------------------------------
Streamlined Sales Tax Project Report
Dennis Brown
Equipment Leasing Association
The Streamlined Sales
Tax Project (SSTP) met in San Diego on Monday, January 12 and Tuesday,
January 13. Discussions included
an off line meeting to examine provisions of the Simplified Sales and
Use Tax Act in Congress that would require tax collection by online
and catalog retailers. This
session subsequently became one of several contentious issues at the
National Conference Of State Legislatures (NCSL) Task Force meeting
in Denver on Friday, January 16. I’ll report on that confrontational discussion
in a separate update.
The SSTP session
expected in March will probably be postponed to allow the public and
private sector to accomplish separate objectives.
SSTP will hold a number of work group discussions (on bundling,
digital good, and other topics) between now and the next SSTP meeting
which is expected to occur in May.
The Council On State
Taxation (COST) will convene a private sector meeting to review the
level of compliance by states. The
private sector meeting will be an opportunity for the private sector
volunteers to meet as a group and to review the compliance checklists
with the government representatives who did the initial preparation. Drafts of the checklist are due March 1st and the meeting to review
the checklists will take place sometime during the month of March. Chicago is the probable location of the meeting
but plans are currently in the early stages.
This update covers:
Compliance
Exemption Certificate
Candy Definition
Amnesty Procedures
Digital Equivalent
of Tangible Personal Property
DETPP Purpose Versus
Perception
DETPP Burdens
Options For Attaining
DETPP Purpose and Principle
Option 1 - Adopt
General Definition of DETPP
Option 2 – General
Definition with Subcategory Definitions
Option 3 – Adopt
Only Specific Subcategory Definitions
Option 4 – Taxability
Matrix
Option 5 – Taxability
Matrix Combined with 1, 2 or 3
Model 3 Certified
Automated Systems (CAS)
Compliance
In San Diego the
public and private sectors discussed several arrangements that would
allow both to register opinion as to the level of compliance attained
by individual states and what steps are needed to gain compliance.
March 1st was cited as
a target for the initial 20 states to complete and review the draft
checklists. It is now anticipated that at the conclusion
of the review process, the state DOR representative and the private
sector volunteer will be asked to sign a statement that the checklist
is correct to the best of their knowledge and that it identifies all
known compliance deficiencies.
Exemption Certificate
Much discussion centered
on what is meant by “the time of sale” requirement for collecting exemption
certificates. Business representatives
argued strongly for a grace period of at least 6 months after the sale
in recognition of administrative realities.
Whether this can be accomplished without amending the Agreement
remains an open issue. The practice
in some states of requiring an exemption certificate for transactions
with the federal government seemed to run afoul of the supremacy clause
in the constitution as well as common practice – this issue will be
revisited. The SSTP approved the exemption administration
white paper along with the model exemption claim form. Work remains on the issue of the taxability
matrix for exempt items and whether sellers are held harmless for relying
on that the matrix for those items.
Candy Definition
SSTP officials have
a sweet tooth when it comes to the candy definition. Once again, we discussed the physical properties of one candy bar
versus celestial qualities of another. They just can’t leave it alone
and break into a sugar high every time someone mentions the subject
at a meeting. Perhaps we should start the next meeting with
a dramatic reading from the Atkins Diet book. While no final decision was made on the proposed definition change,
it is likely that the SSTP will vote in May on a recommendation that
would be forwarded to Implementing States.
Most observers expect the outcome will be support for retaining
the current definition otherwise the initial 20 states adopting the
Agreement would be out of compliance.
Amnesty Procedures
A grant of amnesty
was acknowledged to be a state-by-state decision for every state that
enacts the Agreement making blanket agreements from a national governance
body appears to be unfeasible. Another
issue in the area of amnesty is whether the receipt of a nexus questionnaire
constitutes “notice of an audit” by the state and thus defeats a taxpayer’s
ability to obtain amnesty. While
a few states felt the questionnaire was the beginning of an audit, taxpayer
resistance to this concept may lead to a determination by the SSTP that
the questionnaire is not an audit for purposes of SSTP amnesty.
Digital Equivalent
of Tangible Personal Property
SSTP efforts to draft
definitions for Digital Equivalent of Tangible Personal Property (DETPP)
consistently draw inquiries from members of the Equipment Leasing Association
(ELA) along with all the other industry groups. I assured an ELA member
attending for the first time that having missed two years of discussion
had not left her very far behind despite best efforts of those involved.
SSTP provided an
assessment of the DETPP issue that helped everyone. This is not to suggest the public or private sector walked away
with a firm understanding of where this endeavor is going.
DETPP Purpose Versus
Perception
Examination of past
DETPP work revealed an apparent disconnect between the declared purpose
for writing digital equivalent definitions and the perception of business
representatives engaged in the process.
From a state perspective, the overall purpose and principle pursuant
to Streamlined Sales and Use Tax Agreement are:
•Substantially reduce
the burden of tax compliance (Article 1, Section 102)
•To not influence
a state to tax or exempt any item or service (Article 1, Section 103)
Business representatives
often see the process as seeking to prevent erosion of the state tax
base, e.g., books, remains taxable when they are transferred in a digital
form. Does drafting a uniform definition for books
in digital form entice states currently exempting them to enact a tax?
If yes, it contradicts the stated purpose of not influencing a state
to tax or exempt any item or service and business will not collaborate
in the DETPP process.
SSTP wants to provide
uniformity for those states wanting to tax or exempt a digital product
while not influencing the state-by-state decision on which way to go. This is the balancing act facing the DETPP
Workgroup.
DETPP Burdens
Is it taxable and
where is it taxable sums up concerns expressed regarding burdens to
be handled by retailers/lessors together with other taxpayers and interested
parties? How do rights and ownership associated with
tangible personal property (TPP) transfer to the digital equivalent?
Loss of resale exemption
granted TPP but not digital counterparts invites tax pyramiding and
should be addressed in the issue paper. The impact on manufacturers
exemptions is another facet that has not gained sufficient attention.
DETPP places burdens
on states to answer taxpayer questions on what is or isn’t taxable. The risk of litigation is also a liability
for states. Another ever-present
challenge for state officials is to clearly tax or exempt an item or
service.
The public and private
sector burdens can be reduced with the anticipated matrix indicating
what is and isn’t taxable together with the hold harmless protections
promised to business.
Options For Attaining
DETPP Purpose and Principle
When examining how
not to influence if an item or service is subject to tax under current
treatment, the primary means cited is for SSTP to minimize the need
for a state to change the tax treatment of any item or service delivered
electronically in order to comply with the Agreement.
Looking to the future, provide states as much flexibility as
possible in determining if an item or service that is delivered electronically
is taxable.
Five options were
reviewed for meeting SSTP purpose and principle.
State officials sought opinions of the private sector on each
one. Conclusions were not reached as state officials
concluded by saying they will take concerns expressed by business under
advisement as they seek a collaborative way to resolve differences. I walked out apprehensively realizing this
is diplomatic language similar to what was heard prior to the invasion
of Iraq.
Option 1 - Adopt
General Definition of DETPP
Require states to
adopt one inclusive definition if they tax DETPP.
Attempts at reaching this target have thus far proved unsuccessful.
The second part of Option 1 was to allow states to exempt specific items
of DE of TPP as they choose.
Option 2 – General
Definition with Subcategory Definitions
Allow states to do
one of two things:
Adopt the broad definition
if they tax any digital item and use subcategory definitions for exemption
or
Adopt only the subcategory
definitions for imposition
Option 3 – Adopt
Only Specific Subcategory Definitions
Adopt only specific
subcategory definitions with states required to use them for imposing
tax or extend general imposition authority requiring these definitions
for providing exemptions. This
option had the attraction of avoiding an inclusive definition but also
carries a pitfall if a state decided to tax DETPP. With SSTP powerless
to prevent taxation of digital equivalents, each state desiring such
a tax would independently write a general definition.
Digital equivalent
definitions written independently by several states would not necessarily
uphold SSTP objectives of substantially reducing the burden of tax compliance
while not influencing taxation of an item or service. Then again, SSTP efforts to write one overall definition captured
items and services not currently taxed.
Option 4 – Taxability
Matrix
Develop only a taxability
matrix with
subcategory definitions for digital equivalent of TPP but do not
require states to use these definitions in their statutes. Require states to fill out the matrix and provide
hold harmless protection for retailers/lessors.
Option 5 – Taxability
Matrix Combined with 1, 2 or 3
Produce a Taxability
Matrix (in combination with 1, 2 or 3) and require states to fill out
the matrix and provide hold harmless protection for retailers/lessors.
Model 3 Certified
Automated Systems (CAS)
Some equipment lessors
have asked about the status of certifications under Model 3, which allows
your proprietary system to become a Certified Automated Systems (CAS).
During initial implementation,
lack of resources will require postponement.
Model 3 will accommodate
large retailers or lessors that have developed sophisticated computerized
sales tax administration systems. Businesses choosing to have their
current operations gain sanction as a CAS under Model 3 would want assurances
that transactions processed through their systems will match results
of transactions handled by a CSP under Model 1 and CAS under Model 2. Otherwise, their system might be deemed out of compliance during
audit and the their level of indemnification against errors jeopardized.
It would take more
resources than currently available for Streamline officials to certify
proprietary systems around the country.
Model 3 will remain a worthy goal but it will not be part of
initial implementation.
Dennis Brown
Equipment Leasing
Association
http://www.elaonline.com/GovtRelations/State/Streamometer/
News Briefs--
Beware Calculator
e-Mail--It is a Virus
http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2004/01/19/financial2136EST0052.DTL
U.S. Bank warning
about hoax e-mails
http://www.signonsandiego.com/news/business/20040119-1306-usbank-hoax.html
Leasing Gets Benefit
from New Tax Ruling on Company Aircraft
http://www.washingtonpost.com/wp-dyn/articles/A30483-2004Jan19.html
ABS has best year
in ‘03, lags corporates
http://www.absnet.net/include/showfreearticle.asp?file=/headlines/2.htm
Chicago to Lose 2
Historic Candy Brands
http://www.nytimes.com/2004/01/20/business/20candy.html?pagewanted=all
Burned by economy,
consumed by debt
http://www.ajc.com/business/content/business/0104/18debt.html
-----------------------------------------------------------------------------------------------
"Gimme that
Wine"
New Winemakers for
Buena Vista, La Crema and Wild Horse
http://www.winespectator.com/Wine/Daily/News/0,1145,2316,00.html
Coppola's Wine Tribute
to Director Daughter
http://www.contactmusic.com/new/xmlfeed.nsf/0/4FC00A2320DC6AF280256E1F004D1D1F!opendocument
New Group Formed
to Represent Yakima Valley Wineries and Growers
http://www.winespectator.com/Wine/Daily/News/0,1145,2315,00.html
Buyer's Market Breeds
New Kind of Winery http://www.beverageworld.com/beverageworld/headlines/article_display.jsp?vnu_content_id=2071319
Wine Spectator Now
Reaches 2 Million Wine Enthusiasts
http://www.winespectator.com/Wine/Daily/News/0,1145,2313,00.html
-------------------------------------------------------------------------------
This
Day in American History
1778
- Captain James Cook discovered Hawaii when he landed first at Waimea
on Kauai Island. http://members.tripod.com/~cuculus/cook.html
1801-John
Marshall was appointed the fourth chief justice of the US Supreme Court.
1806 – Birthday of writer/editor Nathaniel P. Willis, who founds
the "American Monthly Magazine" in 1831, born Portland, Maryland.
http://www.nagasaki-gaigo.ac.jp/ishikawa/amlit/w/willis19ro.htm
1847-Birthday
of Rev. W.R. Pettiford, founder of the Alabama Penny Savings Bank and
the Alabama Publishing Company.310 18th Street
North, Birmingham,Al. Now the Pythian Building, the Alabama Penny Savings Bank was Alabama's
first black-owned bank and the first of three banks in the nation owned
and operated by African-Americans in the early 1900s.
http://docsouth.unc.edu/church/boothe/ill91.html
1870-Hiram
Rhodes Revels elected U.S. Senator from Mississippi, becoming the
first
Black US Senator in US history. Ancestry was
Black. American Indian. Lumbee Indian . Republican.
Member of Mississippi state senate,
1870; U.S.
Senator from Mississippi, 1870-71; secretary of state of
Mississippi, 1873 Died while
attending a church conference,
in Aberdeen, Monroe
County, Miss., January 16, 1901. Polite and
unassuming, Revels was a national sensation and honored guest at lavish
Washington receptions. When he presented his credentials on Feb. 23,
Senate galleries were packed. To Republicans, he was living proof the
war had advanced civil rights. The portly Revels was seated by a convincing
48-8 vote. On Feb. 25 at 4:40 p.m., he officially became the first black
man to serve in either the Senate or the House of Representatives. Sen.
Revels' dignified congressional service ended in March 1871. Returning
to Mississippi, he co-founded "Revels University" for African-American
students, became its first president and then crusaded to change the
school name to "Alcorn University" to honor the white governor
who supported his efforts. He also taught at Shaw University and was
elected Mississippi secretary of state. To obtain election, politics would change and
a deal
was made
with southern Democrats, and reconstruction would end. It would not be until November 8, 1966 that another black would
be elected to the US Senate; Edward W. Brooke of Massachusetts.
http://bioguide.congress.gov/scripts/biodisplay.pl?index=R000166
http://freepages.folklore.rootsweb.com/~docbratt/hiram_rhodes.htm
1879 –Birthday of great American modernist dancer Ruth St. Denis
,born Englewood, New Jersey. “The dance is
the rhythmic articulation of the soul.”
— Ruth St. Denis
http://www.streetswing.com/histmai2/d2ruth1.htm
http://writetools.com/women/stories/stdenis_ruth.html
http://www.amazon.com/exec/obidos/ASIN/0292770464/inktomi-bkasin-20/103-7172481-0590248
1885 – La Marcus Thompson of Coney Island, New
York patented the roller coaster. His coaster was 450 feet long, with
a highest drop of 30 feet.
http://www.expage.com/page/coasterhistory2
http://www.pbs.org/wgbh/amex/cone
http://www.bgsu.edu/offices/press/pp0155.html y/sfeature/history.html
1891 – Under the direction of Dr. James Naismith,
the first basketball game was played at the International YMCA in Springfield,
MA. Peach baskets with the bottoms
still in them were used as the goals.
It wasn’t until 1905 that someone had the bright idea to remove
the baskets’ bottoms, thereby eliminating a climb up a ladder after
every goal.
1894-Birthday
of American composer Walter Piston,
Rockland, Maine
http://www.schirmer.com/composers/piston_bio.html
http://www.classical.net/music/comp.lst/piston.html
1894-Birthday of Harold Lincoln Gray, the creator of Little Orphan
Annie, born at Kankakee, IL. The comic strip featuring the 12-year-old
Annie, her dog Sandy and her mentor and guardian Oliver “Daddy” Warbucks
began appearing in the Chicago Tribune in 1924.
While controversial for it strong conservative views, the strip
was highly popular for it stories demonstrating the values of perseverance,
independence and courage. Gray created the strip for 44 years until
his death May 9, 1968 at La Jolla, CA, at age 74.
1896-Birthday of George Burns, comedian, born
at New York City. He began in vaudeville without much success until
he teamed up with Gracie Allen, who became this wife. As Burns and Allen,
the two had a long career on radio, in film and with their hit TV Show,
“The George Burns and Gracie Allen Show.” Later he played the role of
Rod and the Devil in the “Oh, God!” movies.
He lived to be 100 and died March 9, 1996, at Los Angeles, CA.
1920 -- American Civil Liberties Union founded.
1920-Birthday of harmonica player Gene
Dennis, Mt. Pleasant, TN
1922-Birthday of singer Connie Haines, born Savannah, GA.
http://www.spaceagepop.com/anthony.htm
http://shop.store.
1924-Birthday of Otis Dewey “Slim” Whitman,
first country singer to perform at the London Palladium, born Tampa,
Fl. 1929 - The movie, "In Old Arizona", the first full-length
talking picture filmed outside, was released. The outdoor scenes were
filmed in Utah and California.
http://awards.fennec.org/movie/in_old_arizona.html#oscar
http://www.hollywood.com/movies/detail/movie/246675
1925 -- Miriam "Ma" Ferguson inaugurated as Texas' first
woman governor.
Her husband "Pa" Ferguson had been governor in the previous
decade but was impeached. When Ma ran in 1924, the slogan was "two
governors for the price of one."
http://www.tsl.state.tx.us/governors/personality/mferguson-hopkins.html
1929-Birthday of drummer Jimmy Cobb, Washington,DC
http://www.jazzreview.com/cdreview.cfm?ID=635
1931-Brithday of organ player Earl Grant, Oklahoma
City, OK
“Ebb
Tide” was a big hit in 1961.
http://music.lycos.com/artist/bio.asp?QT=A&QW=Earl+Grant&AN=Earl+Grant&MID=10656&MH=
http://memory.loc.gov/ammem/today/jan20.html
1942 - On Columbia Records, Harry Babbitt sang
with Kay Kyser and his orchestra on, "Who Wouldn’t Love You".
The record was a hit for Kyser
1945
- Franklin Delano Roosevelt was inaugurated to his record fourth term
in office as president of the United States. He was the only one to
win a fourth term, November 7, 1944. Harry S. Truman was elected vice-president.
The electoral vote was Roosevelt, 432; Governor Thomas E. Dewey, Republican,
99. The popular vote was Roosevelt,
25,602,504, Dewey, 22,006,285. In
congressional elections the Democrats lost two Senate seats, but held
a 56-38 majority. In the House, they gained 24 seats for a 242-190 lead,
with two seats held by minor parties.
1948---Top
Hits
Ballerina - Vaughn Monroe
How Soon - Jack Owens
Golden Earrings - Peggy Lee
I’ll Hold You in My Heart (Till I Can Hold You in My Arms) - Eddy Arnold
1953
- For the first time, a television show from the United States was transmitted
to Canada. The historic show was the CBS Television production of "Studio
One", transmitted to CBLT-TV in Canada.
1954
-70ºF (-57ºC), Rogers Pass, Montana (state 48 record)
1954
- Radio's National Negro Network was formed, with nearly 40 radio stations
taking charter membership positions. Its most notable program was "The
Story of Ruby Valentine", a continuation of the CBS soap "We
Love and Learn". The program starred Juanita Hall (fresh from her
success as Bloody Mary in "South Pacific") and was apparently
sponsored by Wrigley's Gum. The network flourished in the mid 50s and
may have had a number of major national sponsors.
1956---Top
Hits
Memories are Made of This - Dean Martin
Band of Gold - Don Cherry
Rock and Roll Waltz - Kay Starr
Sixteen Tons - Tennessee Ernie Ford
1958
- The early rock ’n’ roll classic, "Get a Job" by the Silhouettes
was released.
http://www.feelingnostalgic.com/getajob.html
1958
- Elvis Presley was ordered by the draft board in Memphis, Tennessee
to report for duty. He was allowed a 60-day deferment to finish the
film "King Creole".
1961-John
F. Kennedy was inaugurated president of the United States. A Democrat
and the 35th president, Kennedy was assassinated on Nov.
22,1963.
“And
so, my fellow Americans: ask not what your country can do for you—ask
what you can do for your country.
My fellow
citizens of the world: ask not what America will do for you, but what
together we can do for the freedom of man. “
( lower
half of: http://memory.loc.gov/ammem/today/jan20.html
_
1964
- The Beatles second album, Meet the Beatles, was released in
the United States. It was the British group's U.S. debut LP. It rose
to Number 1 on the LP pop chart, and remained in the top spot for 11
weeks.
1964---Top
Hits
There! I’ve Said It Again - Bobby Vinton
Forget Him - Bobby Rydell
Surfin’ Bird - The Trashmen
Love’s Gonna Live Here - Buck Owens
1965
- The first disk jockey to program black music for white audiences,
Alan Freed, the ‘Father of Rock ’n’ Roll’, died of uremia in a hospital
in Palm Springs, California. He was only 42 and a borderline alcoholic
- a broken man because of his involvement in the payola scandals. In
the 1950s, Freed, ‘Moon Doggy’, at WJW Radio in Cleveland, coined the
phrase, "rock ’n’ roll,”" before moving to New York's WABC.
He was fired from WIN December 1962, Freed was fined $300 and given
a suspended sentence on two counts of commercial bribery - accepting
money for playing records. Three years earlier, he was the top disc
jockey in the US on New York station WABC, which fired him when he refused
to sign a statement saying he had accepted bribes. ABC for allegedly
accepting payola aka being paid to play records by artists and record
companies. The congressional investigation from 1959 to 1960 into payola
made Freed the scapegoat for a wide spread practice. Freed died almost
penniless after the scandal was exposed. Alan Freed was said to have
coined the term rock 'n' roll from the words to Bill Haley's 1952 recording
of "Rock A'Beatin' Boogie." .
1968-
Bob Dylan and the Band horrified folk music purists by playing electric
instruments at a Tribute to Woody Guthrie concert at New York's Carnegie
Hall. The concert, one of a series organized by Pete Seeger, also featured
Joan Baez and Peter, Paul and Mary. Guthrie, a folk music pioneer, had
died the previous October.
1972---Top
Hits
American Pie - Don McLean
Let’s Stay Together - Al Green
Sunshine - Jonathan Edwards
Carolyn - Merle Haggard
1973
- Richard M. Nixon was sworn in as president for a second term; during
the Watergate scandal, he became the first president to resign from
office. On Nov. 7, he was reelected president of the United States in
the greatest Republican landslide in history. Spiro T. Agnew was reelected
vice-president. The electoral vote was Nixon, 521; Sen. George S. McGovern,
Democrat, 17. The popular vote was Nixon, 45,767,218; McGovern 28,257,668.
The Democrats picked up two Senate seats for a 57-43 majority.
The Republicans gained 13 seats in the House, but the Democrats still
led 255-179, with one seat going to an independent.
1974
- Johnny Miller, won the Tucson Open Golf Tournament, becoming the first
pro golfer to win four major tournaments consecutively.
1977-Here
is some trivia as the first president to take oath of office using a
nickname was Jimmy
Carter,
who was worn into office in Washington, DC this day by Chief Justice
Warren E.l Burger. Instead of
his formal name, James Earl Carter, Jr., he used his nickname, Jimmy.
ON November 2, 1976 he was elected president along with Walter F. Mondale
as vice-president. The electoral vote was Carter, 297; President Ford,
240. The popular vote was Carter, 40,828,929; Ford, 39,148,940.
In congressional elections the Democrats kept a 2-1 Senate majority,
64-38, with one seat going to an independent, and a House majority of
292-143. In the fist months of President Carter’s administration,
most Vietnam-era draft resisters were pardoned, the planned pullout
of US forces from South Korea was announced, and while he had a full
agenda, it was setback when Congress challenged the financial dealings
of Bert Lance, director of the Office of Management and Budget, and
opposed passage of Carter’s energy conservation Program.
Vernon Jordan of the National Urban League charged the administration
with not doing enough to reduce unemployment among blacks.
1978
- Fred Silverman quit his job as ABC-TV's head of programming to take
a position as president of NBC. For ABC, Silverman developed shows like
"Happy Days", "Laverne and Shirley", "Charlie’s
Angels" and "Three’s Company", earning the network its
highest ratings ever. His talents didn’t work out as well at NBC where
he backed the most expensive television bomb in history: "Super
Train", starring Steve Lawrence. Grant Tinker shortly after replaced
Silverman, taking the Peacock Network to number one in just a few years.
Silverman would go on to become a top Hollywood independent producers.
1980
-Super Bowl XIV Pittsburgh Steelers beat Los Angeles Rams, 31-19 in
Pasadena; Super Bowl MVP Terry Bradshaw, Pittsburgh, Quarterback
1980---Top
Hits
Rock with You - Michael Jackson
Do that to Me One More Time - The Captain & Tennille
Cruisin’ - Smokey Robinson
Coward of the County - Kenny Rogers
1980-President
Jimmy Carter announced that the US Olympic Team would not compete in
the 1980 Summer Games in Moscow as a protest against the Soviet Union’s
military intervention in Afghanistan in December, 1979.
1981
- Ronald Reagan became president of the United States at the age of
69 and 349 days, the oldest president to take office.
He carried 44 states in the November 4, 1980 election. The electoral
vote was Reagan, 489; Pres. Jimmy Carter, 49. The popular vote was Reagan,
42,797,153; Carter, 34,434,100. John Anderson, independent candidate, 5,533,927.
In congressional elections, the Republicans picked up 12 Senate
seats for a 53-46 majority, with one independent seat. In the House,
the Democrats lost 33 seats but kept a majority of 242-192, with one
seat going to an independent.
1981
- 52 American hostages seized in their embassy in Tehran were released
after 444 days in captivity.
1982-
singer Ozzy Osborne was taken to hospital after biting the head off
a dead bat during a concert in Des Moines, Iowa. Ozborne threw the remains
of the bat into the audience. He had to endure a series of rabies shots
and their effects caused him to collapse on stage the following week
1982-The
Chicago Bears named former tight end Mike Ditka head coach.
In 11 seasons, Ditka won the 106 regular-season games and led
the Bears to victory in Super Bowl XX.
1982—Camcorder
developed: Five companies ( Hitachi, JVC, Phillips, Matsushita and Sony)
agreed to cooperate on the construction of a camera with a built-in
videocassette recorder.
1985
- The most watched Super Bowl game in history was seen
by an estimated 115.9 million people as Joe Montana and the San
Francisco 49'ers downed Dan Marino and the Miami Dolphins 38-16 at Stanford,
CA.. The broadcast captured the second largest television audience ever.
The only show to have a larger audience, the largest in history, aside
from man landing on the moon, was the one for the last episode of M*A*S*H
in 1983. Super Bowl XIX was also historic in that is featured the first
use of television commercials that sold for a million dollars a minute.
Super Bowl MVP Joe Montana, San Francisco, Quarterback
1986
- Never used, and until then unseen by the public footage from the 1931
horror classic, Frankenstein, was found. The lost scenes showed
the monster, played by Boris Karloff, tossing a girl into a lake and
at one point having a hypodermic needle in the monster's arm. Considered
too shocking for the 1930's audience, the scenes were cut. Since then,
they have been put back into the film and re-released to the public.
1987
- Terry Waite, the Archbishop of Canterbury's special envoy in Lebanon,
was kidnapped. He was not released until November 1991.
1988---Top
Hits
Got My Mind Set on You - George Harrison
The Way You Make Me Feel - Michael Jackson
Need You Tonight - INXS
One Friend - Dan Seals
1991-The
Buffalo Bills won the first of their record four consecutive AFC titles
by overwhelming the Los Angeles Raiders, 51-3. Buffalo went on to lose
Super Bowl XXV to the New York Giants, 20-19.
1993-
President Bill Clinton picked up his saxophone to jam with the likes
of Ben E. King, Clarence Clemons, Herbie Hancock, Dionne Warwick and
Chuck Berry at several of the dozen balls honoring his inauguration.
Among other headliners at the balls were the original members of Fleetwood
Mac, Linda Ronstadt and Paul Simon. Canadians among the entertainers
included Celine Dion, who performed at a youth gala, Bruce Cockburn,
Ronnie Hawkins and k.d. lang, who was a star attraction at an unofficial
ball put on by People for the Ethical Treatment of Animals.
1995-
Bonnie Raitt raised $80,000 at a New York City benefit for her project
to provide guitar lessons for girls. Fender guitars later announced
the launching of the Bonnie Raitt Signature Stratocaster, the first
Fender named after a woman. Raitt donated all her royalties from the
line to her project and Fender said it would provide free guitars.
1996- Madonna arrived in Buenos Aires to begin
filming the movie version of "Evita," the musical about Eva
Peron. Nationalist hardliners in the ruling Peronist Party were openly
hostile to the idea of Madonna playing the former Argentine first lady.
There were reports that security around the star had been beefed up.
1997-
Comet Hale-Bopp crosses Mars' orbit
http://www.eso.org/outreach/info-events/hale-bopp/comet-hale-bopp.html
http://www.jpl.nasa.gov/comet/images.html
http://www.crimelibrary.com/notorious_murders/mass/heavens_gate/4.htm
Super
Bowl Champions This Date
1980 Pittsburgh
Steelers
1985 San Francisco 49ers
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