C.A.T.S. is proposing an act to tax telemarketers who call California residents from outside the State of California.

The gold rush days are history but companies still "mine" California gold using the telephone to solicit California residents.  California is big business to telemarketers who place thousands of calls daily to solicit California residents, yet they pay no tax, not even sales tax on the products or services that they peddle to us daily.

The Act would place a 10¢ tax on all telemarketing calls placed to California residents; ½ of the revenue generated would go to the Attorney General for enforcement of this Act.

Telemarketers who place calls within the State of California and maintain a presence in this State would be  exempt; after all, they are paying taxes and hiring California residents to make the calls.

Please take just a minute of your time to e-mail this to your State Legislator and ask him or her to sponser this proposed legislation.  We here at C.A.T.S. believe that this Act will reduce the endless calls, many of which are illegal, to California residents and give the Attorney General funds to enforce Federal and State laws regarding the telemarketing industry.

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The California Telephone Solicitation Control and Tax Act

Also known as the

 My Time For A Dime Act

 

Legislative Intent

The Legislature of the State of California recognizes that unrestricted telephone solicitations or telemarketing could be an intrusive violation of privacy and, in some instances, a risk to public safety.

In addition the State of California spends valuable funds to regulate telemarketers and in many cases receives no revenue as a result of their breaking other State laws.  Members of the Legislature have all received numerous complaints from their constituents about calls they do not want.

The Attorney General is empowered to enforce Federal laws regarding these unsolicited calls but receives no revenue to do so.

 

Therefore the State of California now declares that:

A tax of  ten cents per telemarketing call placed to any phone registered to a California Area code will be assessed to the telemarketer.  If the telemarketer makes calls on behalf of another entity, that entity will be responsible for the tax.

No tax will be assessed if the telemarketing call is placed within California.  The tax will be only applied if the telemarketer is not in the State of California.

Telemarketers and the entity that they call on behalf of will be required to register with the California Attorney General and pay the tax quarterly to the Secretary of State. 

All persons placing telemarketing calls whether directly or on behalf of another shall either maintain a physical presence in the State of California or have a registered agent in the State.

Proceeds from this tax will be divided equally between the State of California and the California Attorney General.  The Attorney General shall use the proceeds to enforce this act.

The Small Claims Act shall be modified to allow a consumer filing suit in Small Claims Court under the Telephone Consumer Protection Act (47 U.S.C. 227) to allow such suit to proceed even if the defendant does not have a California address or California registered agent.

Definitions:

The term telemarketer means the person or entity that initiates a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person.

The term telemarketing means the initiation of a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person.

The term telephone solicitation means the initiation of a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person.

Draft of proposed law

 
Robert Arkow
Consumer Advocate
President, Californians Against Telephone Solicitation (CATS)
P.O. Box 800753
Valencia CA, 91380
www.stopjunkcalls.com