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The Scariest California Drought Map Yet

Tyler Durden's picture




 

Across California, reservoirs are running dry as the drought continues to weigh dramatically on many parts of the economy. The following map, showing the dismally low levels of reservoirs in all their horrible glory could be the scariest drought map yet...

 

 

Source: CDEC

 

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Tue, 09/02/2014 - 17:16 | 5172987 So Close
So Close's picture

Did the water disapear or just go somewhere else?

Tue, 09/02/2014 - 17:18 | 5172992 VATICANT
VATICANT's picture

Serves them right. California sucks

Tue, 09/02/2014 - 17:20 | 5172999 bitterwolf
bitterwolf's picture

What POS state do you reside in douche bag?

Tue, 09/02/2014 - 17:22 | 5173008 Escrava Isaura
Escrava Isaura's picture

It doesn't matter!

He's an idiot.

Tue, 09/02/2014 - 17:52 | 5173155 nope-1004
nope-1004's picture

Such emotion and love over bankrupt "states".  Should we bring Church into this argument to really ignite the "idiot" statements?

You know,  "church and state......"

 

lmao

Tue, 09/02/2014 - 17:59 | 5173187 OldPhart
Tue, 09/02/2014 - 18:16 | 5173245 Keyser
Keyser's picture

So that's what all those chem-trails were for, to create drought on the west coast... 

 

Tue, 09/02/2014 - 18:52 | 5173372 TVP
TVP's picture

It's not real, because that's delusional.

Only crazy people look up at the sky and notice the massive grey haze that lingers for hours, something that never existed prior to the early 1990s when this all began.  

But hey, it's just normal contrail exhaust.  Has to be.  No correlation to historic drought. 

Tue, 09/02/2014 - 19:05 | 5173425 Anusocracy
Anusocracy's picture

Weathery news:

http://blogs.woodtv.com/2014/09/02/do-you-know-someone-in-az-or-nw-mexico/

http://blogs.woodtv.com/2014/09/01/few-showerst-showers/

August temperature anomaly +0.165°C compared to 1981-2010 climatological normal. Season-to-date 3 North Atlantic tropical storms (2 hurricanes) total ACE = 19.55 … about 40% below 1981-2010 climatological average. Looking at the last 10 years, 2014 wildfire acreage burnt in last place , less than 50% of normal for the last 10 years. Tornadoes in 15th percentile. No tropical storms anywhere on earth on August 31. Great Lakes water levels rising to near to above average…Arctic ice extent up significantly in the past 2 years, Antarctic ice extent at near record – more than 2 standard deviations above average, record to near record yields for corn, soybeans and Michigan fruit. Thunderstorm rolls into New York City – then a rainbow over New York City.

Tue, 09/02/2014 - 19:14 | 5173473 Headbanger
Headbanger's picture

California real estate is about to become worthless without water very soon.

And there's nothing the Federal Reserve can do about it now or ever.

So welcome to the financial black hole horizon event.

 

Tue, 09/02/2014 - 19:18 | 5173493 cifo
cifo's picture

California will be fine. Smart people adapt.

 

 

Tue, 09/02/2014 - 19:28 | 5173528 Keyser
Keyser's picture

Ok, by your own defintion, northern California will be fine while those in the south are fucked... 

 

Tue, 09/02/2014 - 19:39 | 5173572 cifo
cifo's picture

San Diego has a lot of smart people too.

Tue, 09/02/2014 - 21:03 | 5173830 Save_America1st
Save_America1st's picture

they have a huge desal plant project going right now...and others in line after this one.  Ain't cheap, but that's how it goes when shit like this happens. 

http://www.mercurynews.com/science/ci_25859513/nations-largest-ocean-desalination-plant-goes-up-near

Tue, 09/02/2014 - 22:48 | 5174100 Supernova Born
Supernova Born's picture

I could speculate cost-effective solar-powered desalination is not the type of hydrocarbon based technology desired by big oil and their water boy politicians.

Maybe Governor Moonbeam could get his nickname upgraded to Governor Sunbeam by focusing like a parabolic mirror on the issue.

Wed, 09/03/2014 - 00:02 | 5174335 Elvis the Pelvis
Elvis the Pelvis's picture

Drought comes and goes.  What?  Is this Obama's fault, too?

Wed, 09/03/2014 - 06:31 | 5174714 Arnold
Arnold's picture

Yup, happening on current POTUS watch. (err.......?)

Yeah watch is the word I want. Only his minions have actions.

Tue, 09/02/2014 - 21:52 | 5173992 NidStyles
NidStyles's picture

Sure they do. Unfortunately, they are all Whales and Dolphins. 

Tue, 09/02/2014 - 19:45 | 5173596 Joe Sixpack
Joe Sixpack's picture

Nah. So Cal owns what little water there is.

Tue, 09/02/2014 - 20:56 | 5173808 TahoeBilly2012
TahoeBilly2012's picture

Y'all better hope it rains soon or you will be forever breaking your teeth on Chilean fruit.

Tue, 09/02/2014 - 23:06 | 5174167 laomei
laomei's picture

Chilean fruit is better than cali fruit

Tue, 09/02/2014 - 22:38 | 5174099 NidStyles
NidStyles's picture

Uhh, you mean the water that SoCal has been buying from Arizona for the past 15 years?

Tue, 09/02/2014 - 22:23 | 5174057 FlyinHigh
FlyinHigh's picture

By "Northern California" you mean, north starts about 75-100 miles north of the "Gay Bay". Right? Of course you did? Thank You.

Tue, 09/02/2014 - 21:34 | 5173929 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"California will be fine. Smart people adapt."~

Last year I put in a 1600 gallon rain catchment system. I've been watering my fruit trees and raised vegetable beds with it. Still have about half available. I'm in So Cal just west of Palm Springs.

And yes, I'll do just fine.

Tue, 09/02/2014 - 21:46 | 5173976 DaveyJones
DaveyJones's picture

when farmers were farmers that's how they did it. They captured water. It falls from they sky i think..and them it runs down slopes...until you catch it

Tue, 09/02/2014 - 23:45 | 5174286 TheMeatTrapper
TheMeatTrapper's picture

"Last year I put in a 1600 gallon rain catchment system."

 

Don't worry. Soon that will be called hoarding water and will outlawed because it's unfair that you caught all the water. 

Wed, 09/03/2014 - 01:37 | 5174481 Theosebes Goodfellow
Theosebes Goodfellow's picture

Now MeatTrapper, what a thing to say! I disagree. No, "hoarding" is my 8000 gallon above ground swimming pool. Now that's hoarding. :)

If TSHTF, I live in a little community of about 1/2 acre parcels zoned "horse property". I've got 7 of the critters on my block alone. Yeah, we'll be okay.

One of my neighbors, (a plumber of all things), saw my rain catchment system, (IBC totes plumbed together with 2" PVC), and said he wanted to put some in on his property. So I guess we'll be putting in a system for him this winter. BTW, you can't see my system from the street. You won't be able to see his either.

The next step for me is building some aquaponics rigs out of the IBC totes.

http://youtu.be/WYFM7J_TpTU

 

Wed, 09/03/2014 - 08:30 | 5174879 sleigher
sleigher's picture

When I put up my solar panels they made me take them down because it was dark all the time.  

Wed, 09/03/2014 - 09:10 | 5175021 smokintoad
smokintoad's picture

I'm suprised they don't prosecute you for stealing the "people's water".

Wed, 09/03/2014 - 03:05 | 5174583 WOAR
WOAR's picture

That's true. Smart people do adapt.

Smarter people saw the signs and left a long time ago.

Wed, 09/03/2014 - 01:15 | 5174459 Sock Monkey Posse
Sock Monkey Posse's picture

...wait for it...

Wed, 09/03/2014 - 01:13 | 5174460 Sock Monkey Posse
Sock Monkey Posse's picture

Wrong! homes in Santa Barbara are still selling at least 8x the nation average. Did I mention I sold mine 10 years ago and got the hellz out of Cali?

Wed, 09/03/2014 - 08:27 | 5174876 Antifaschistische
Antifaschistische's picture

http://en.wikipedia.org/wiki/Pyramid_Lake_(Los_Angeles_County,_California)

pyramid lake....LOL!!   Pyramid Lake is filled by water from all the other lakes and rivers that contribute to the aqueduct system and giant pipelines that get pumped over the hills south of Bakersfield.

Pyramid lake feeds LA.  THAT tells you what the priority is in California.   So, ignore every other lake.  When/If Pyramid Lake dries up...THATS when you know CA goes into hydro meltdown.

Tue, 09/02/2014 - 23:12 | 5174193 jballz
jballz's picture

Yes it existed, the world has added 2 billion people and 300% increase in air traffic since the 90's. Entire metro areas have sprung up globally since then. What the fuck do you expect the sky to look like?

Can only imagine what the whack jobs thought of smog when it first showed up in LA. Aliens?

Fucking idiocy anyway. 90% of the country (contrail laden at that) just had the biggest harvest and best growing conditions ever and you all point to California which is drought prone anyway and freak out like its unnatural.

It's weather bitchez.

Wed, 09/03/2014 - 05:09 | 5174669 OldPhart
OldPhart's picture

Smog has ALWAYS been endemic to Southern California.  The original Indians called the LA/Inland Empire basin "Land of Many Smokes".  That temperature inversion layer cuddled up to the mountains and stayed for months.

The rest of your statement I pretty much agree with.  We've had draughts many times before and they've been broken pretty dramatically.

Wed, 09/03/2014 - 08:34 | 5174889 sleigher
sleigher's picture

2 billion people and 300% increase in population where?  California?  Are you denying the photos and whistleblowers that have come forward about the spraying?  Are you saying it is natural because there are 2 billion more people in Asia/India that probably DON'T fly?

Tue, 09/02/2014 - 20:33 | 5173726 Majestic12
Majestic12's picture

"So that's what all those chem-trails were for"

Try watching the new HAARP sites in action....anyone who has any cursory knowledge of weather (including "space weather") can "see" for yourself...the two constant pools that keep a wide, open high pressure off the coast...sometimes for months....

http://www.goes.noaa.gov/index_old.html

Watch it and start fighting this shit...especially if you own real estate...!

...otherwise you are "giving permission"...that's how they see it.....

Tue, 09/02/2014 - 22:14 | 5174025 LongBalls
LongBalls's picture

Can they process radioactive sea water for drinking?

Wed, 09/03/2014 - 08:24 | 5174868 sleigher
sleigher's picture

Whats the large reservoir out 152 past Gilroy looking like?  That one isn't on this map.

I don't remember the name unless it is ssan luis.

Tue, 09/02/2014 - 17:27 | 5173031 Bananamerican
Bananamerican's picture

Dirt don't suck.
As a place, California is pretty incredible

Tue, 09/02/2014 - 18:17 | 5173255 Keyser
Keyser's picture

Yeah, while standing on the beach and saying, water, water everywhere and not a drop to drink... 

Tue, 09/02/2014 - 18:30 | 5173290 The_Dude
The_Dude's picture

I think he was implying the place is nice....but the people....not so much

Tue, 09/02/2014 - 19:29 | 5173539 Keyser
Keyser's picture

I know, I've spent a lot of time in SoCal...  

Tue, 09/02/2014 - 20:06 | 5173653 benb
benb's picture

Again, this is a government staged drought. This should not be a surprise to anyone reading Z/H for the last 5 years. It's all staged/rigged from the energy markets to the metal markets.

This is weather control used to implement Agenda 21. And if you don't know about Agenda 21 you're just talking out your butt posting here.

Remember Enron's Kenny-Boy Lay rigging the California utility markets?... Same idea only on steroids, using water.

The plan all along has been to Balkinize California.

Tue, 09/02/2014 - 20:30 | 5173723 benb
benb's picture

Yoo Hoo - I see by the vote downs we have some Cass Sunstein dissonance morons. Or just maybe just some clueless, brainwashed turkeys aboard. In any event don't forget to eat your GMO's, take every vaccine you can, and drink the municipal water... cheers

Tue, 09/02/2014 - 22:39 | 5174101 NidStyles
NidStyles's picture

More likely that we just prefer evidence over nonsense and wild claims.

Tue, 09/02/2014 - 23:43 | 5174279 RichardP
RichardP's picture

Evidence??

See the contrails?  See the drought?  Proof positive that drought causes contrails.

Tue, 09/02/2014 - 23:56 | 5174317 MrButtoMcFarty
MrButtoMcFarty's picture

You ever notice how they always show up when the sky is blue!

Wed, 09/03/2014 - 10:50 | 5175466 xavi1951
xavi1951's picture

Could you see them if it was cloudy? 

So contrail and drought is proof?  Proof of what?  Another conspiracy?

What are they using to change the oceans current patterns?  El Nino Y la nina?

Tue, 09/02/2014 - 20:35 | 5173746 Majestic12
Majestic12's picture

"I think he was implying the place is nice....but the people....not so much"

...because your "wise" and "well-travelled" comments make it so...?

...you fucking drink "Kahlua"...."'nuff said"....

...yeah, you're right ...Missouri is the place to be....

Wed, 09/03/2014 - 04:13 | 5174638 The_Dude
The_Dude's picture

You prove my point too easily...

Wed, 09/03/2014 - 09:29 | 5175134 nofluer
nofluer's picture

Ahhh... the gentle drumming of the rain on the roof and the crash of thunder as the morning monsoon rolls through in Northern and Western Missouri (due over the entire Eastern parts of the nation later today).

Drought? WHAT drought? (BTW - "draught" is a drink, not a lack of rain.)

But you folks out west do NOT want to live here. Forests, wild animals, ticks, monster mosquitoes, savage wild animals like deer, conservatives, chiggers, wild turkeys, did I mention WILD animals? MOST unpleasant area. Why, you can go for hundreds of miles without seeing a single Liberal!!! It's simply a barren wasteland. It’s so barren that once you get away from the cities, you can actually breathe the air without an O2 mask and tank!!!! HORRIBLE!

Tue, 09/02/2014 - 18:33 | 5173299 greyghost
greyghost's picture

talk about scare tactics. this aritcle only shows 12 reservoirs of approx. 154 that the state is tracking. 12 out of 154...really? i also notice that alot of reservoirs that are not state/federal projects, i.e. local built by water districts are not even on the state site. is there a drought, hell yea. are we going to die in the next couple of years...hell no. just have to laugh. local water district has no shortage of water, yet just got thru raising rates 40%. then turns around and imposes water restrictions to comply with state mandated conservation. yep.....first raise rates to offset any conservation savings......they wouldn't want to lose any revenue...lol

 

Tue, 09/02/2014 - 19:53 | 5173616 Dr Strangemember
Dr Strangemember's picture

Yeah... increadibly ghetto!

Tue, 09/02/2014 - 17:41 | 5173103 Mr. Magoo
Mr. Magoo's picture

Serves them right. California sucks

Really? Wait until the full force of this weather manipulated drought fully hits the food supply. Then everyone will be crying for big brother to resolve the problem he created

Tue, 09/02/2014 - 21:37 | 5173945 db51
db51's picture

Starve?  lmfao.   Well, all I can say is ya'll might want to get ready for some serious dietary adjustments....as in say goodbye to the fruits, veggies and nuts, and get ready to chow down on CORN!   Trust me, it's running out of our ears (no pun intended).     Mountains of corn so big that the price is almost $ 2.50/bushel - down from $ 8.00 24 months ago.   Bet you didn't get any of that cost reduction in your fucking cornflakes did you?    Yep....you'd better get prepared to go on an all corn startch, corn sweetner diet......oh...and ethanol...plenty of corn for that too so you'll be able to at least drive you soon to be fat ass around.   Think Tortillas motherfuckers.....we're all Mexicans now folks.  

Tue, 09/02/2014 - 23:49 | 5174290 TheMeatTrapper
TheMeatTrapper's picture

My veggies come from my garden. Not from California. 

Wed, 09/03/2014 - 05:10 | 5174670 OldPhart
OldPhart's picture

So do mine, but they ARE from California.

Wed, 09/03/2014 - 02:42 | 5174550 Franktastic
Franktastic's picture

 THE HEGELIAN PRINCIPLE: which the power seekers have been using with amazing success for a lot longer than I can remember to create support for their power grabs. It's a simple principle. It has only three steps:

* Step one: CREATE A "PROBLEM": Create it or take one that does exist and build it up out of all proportion to its real importance;

* Step Two: PUBLICIZE THE "PROBLEM": Make sure a story about this problem appears in the news media each and every day, in newspapers, news magazines, radio, and television. Hit it again and again in a "steady drumbeat" that soon has people who don't pay real attention to politics (which is the majority of them) clamoring for a "solution" to the problem;

 Step Three: OFFER A "SOLUTION": A solution that takes away one or more of our rights and further undermines the constitutional protections we all are supposed to enjoy. One that involves higher taxes (to pay for this "solution," of course), and one we would not have allowed them to do without this previous conditioning of the public.

Tue, 09/02/2014 - 17:59 | 5173186 Statetheist
Statetheist's picture

Durp, "my tax farm is better than your tax farm."

Tue, 09/02/2014 - 18:51 | 5173370 EmmittFitzhume
EmmittFitzhume's picture

Exactly!  Water doesn't get consumed it's only borrowed. 

Tue, 09/02/2014 - 19:04 | 5173427 giorgioorwell
giorgioorwell's picture

what slice of American heaven do you live in VATICANT?

Tue, 09/02/2014 - 23:07 | 5174175 Dr Strangemember
Dr Strangemember's picture

I'm sorry, but are we supposed to care about this?  I mean, California was and is basically a desert.  I know that must come as a surprise to most that live there given the green lawns, car washes, fountains, trees, pools,...  Just take a drive outside of the urban areas and you'll see what the real California is all about - dry, not much rain, few trees, lots of dirt, plenty of rocks...  So quit your whining and crying!  Deal with your "environment" responsibly.  Same goes for Vegas and Phoenix as well.  

Wed, 09/03/2014 - 00:09 | 5174349 RichardP
RichardP's picture

Only the desert part of California is a desert.  The rest isn't.  The land up on the mountains that have forests and such aren't desert.  The coastland from north to south isn't.  There are some decently-large valleys north of Santa Barbara along the coast that grow a wide variety of crops that are not desert.  The valley that Salinas sits in, running south from San Francisco, supports a wonderful mixture of crops.  I can still smell the cabbage and onions and cauliflower from the last time I drove through there in the fall - harvest time.  And when it snows, the San Juaquin Valley is not even close to being a desert.  Most of Northern California is not desert (but then, most of Northern California is also not suitable for growing crops, because of the terrain.)

The land between Palm Springs and Blythe is desert.

Grab a Google Map and look.

Wed, 09/03/2014 - 05:20 | 5174676 OldPhart
OldPhart's picture

Actually, those valleys full of fruits and nuts really ARE deserts.  They were transformed by thousands of miles of canals bringing water from the north to the center and south.  Remove the water from the canals and those areas revert right back to what they originally were...deserts.  The Central Valley that supplies roughly 40% of the US fruits, veggies and other crops is a geo-engineered project that took decades to build, and mere years to destroy.  You are only beginning to feel the price shock in the produce that you buy, it's possible that by next year you could see nuts, greens, cotton and a lot of other agriculture at the equivalent of $20/ib beef (which you'll be seeing shortly).

This agri-disaster was caused by politicians in Sacramento.  It's effects will be felt world-wide.

Wed, 09/03/2014 - 02:49 | 5174561 Seek_Truth
Seek_Truth's picture

The 50% of California that is (pre dam building) desert has 124 golf courses:

http://www.golfdigest.com/blogs/the-loop/2014/04/california-how-to-recon...

PS- "no problem"

 

Wed, 09/03/2014 - 06:43 | 5174729 Arnold
Arnold's picture

POTUS ain't no Tiger, no matter how much he duffs.

http://www.forbes.com/sites/bobcook/2014/05/23/how-a-declining-middle-cl...

Tue, 09/02/2014 - 17:20 | 5173004 NOTaREALmerican
NOTaREALmerican's picture

It disappeared while going someplace else.

Tue, 09/02/2014 - 17:36 | 5173073 graftvshost
graftvshost's picture

It went everywhere else, disguised as agricultural products and wine.

Tue, 09/02/2014 - 20:41 | 5173766 Majestic12
Majestic12's picture

"OldPhart"??????

Or should we say "JuliaS"?

Fucking trolls are like ticks...sucking life and leaving disease.....

....posting huge amounts of nothing to push good comments down and out....

Death to the trollls!!!! 

Preferrably by WOOD CHIPPER !!!!

Tue, 09/02/2014 - 23:15 | 5174202 NidStyles
NidStyles's picture

You've been here 4 weeks and think you know who the trolls are. 

Wed, 09/03/2014 - 05:20 | 5174678 OldPhart
OldPhart's picture

Ok, I'll bite, who's JuliaS?

Wed, 09/03/2014 - 08:43 | 5174912 sleigher
sleigher's picture

Majestic12?

Tue, 09/02/2014 - 17:40 | 5173079 OldPhart
OldPhart's picture

Let's pipe all that water in the Southern Desert straight to LA.  A couple of filters should do the trick.

http://en.wikipedia.org/wiki/Salton_Sea

Tue, 09/02/2014 - 17:44 | 5173121 OldPhart
OldPhart's picture

Off Topic, but related to California. (And submitted to ZH)

California Scheming

In January, 2014 the State of California Board of Equalization (the Sith-Lords of Tax), long known for animosity towards manufacturing business, announced a plan to reverse that image and salvage the remaining manufacturers in the State.

  They defined a rather narrow range of purchases as ‘partially exempt’ from State Sales Taxes, titled “Manufacturing and Research & Development Exemption” (MRDE).

 

This plan kicked in on July 1, 2014 and is to continue until June 30, 2022.  The partial exemption applies to sales and use taxes at the rate of 4.1875% then 3.9375% on January 1, 2017.  In a State where the minimum sales tax rate is 8%, the net effect of this partial exemption would reduce sales tax on qualified purchases of $100 from $8 to $3.82.

 

Among the fifty entities I am Controller for there are thirteen that are ‘qualified manufacturers’.  I was vaguely aware of the plan, but we had no information until July, when Proposed Regulation 1525-4 was released.

 

Now the savings is substantial.  We purchased a couple of assets in June that, if we had postponed into July, we would have had a sales tax savings of $18,000.  And from my review of purchases made since July, there’s a minimum of $20,000 in refunds due from the State.

 

The State of California is notorious in its’ tax collection methods.  Their auditors are legion and even harsher than the IRS.  There is little hesitation to freeze or seize bank accounts whether business or consumer. 

 

The best method of protection is to be extremely scrupulous in all tax matters and be diligent in recording use taxes as due.  It is essential, in California, to have a clear, descriptive audit trail from the inception of any transaction.

 

What MRDE does, however, is muddy the transaction waters.

 

As described, a customer can make a purchase from us and, rather being classified as Wholesale (Exempt from All Sales Taxes) or Retail (Subject to Sales Taxes), they can now be ‘Partially Retail’ depending on what the purchase is made for.  Worse, they may declare the purchase on a single basis, or as a ‘Blanket’ exemption.

 

All they have to do is provide a Partial Exemption Certificate at the point of purchase and their Sales Tax is reduced to less than half.  And, if one of our entities purchases a ‘qualified’ good, I can present the same certificate.

 

This all sounds wonderful.  But the reality is that certificates are now being received on a piece-meal basis from locations across Southern California; and I, as the Corporate Controller, have no way to determine if I have collected all necessary certificates for all transactions.

 

We have less than a month to calculate Sales Taxes due and are required to pay a minimum of 90% of the monthly total.  Once a quarter within the same time constraints, we break down the collections to the various cities, counties and districts and remit the net difference.

 

I will then be required by the Board of Equalization to prove that each sales transaction claimed as ‘exempt’ is supported by a certificate.  This is unacceptable.  This puts me at risk of clerical errors, customer fraud, and audit fines.

 

For our own qualifying purchases I will be subject to 'Audit Guidelines' that treat any discrepancy as reason to increase the Audit Scope.  And there will be errors.

 

The determination of qualifying property cannot be safely made by individuals at the time of purchase.  One instance of buying a repair part may be excluded that, in the overall picture, should have been included in a capital repair—conversely, an employee may improperly identify a purchase as partially exempt, when it is not.  These are not decisions to be made by field employees.  Worse, these transactions will generally be at the point of purchase by employees with little to no sophistication in the California Tax system.  Our executives do not have the time to second-guess every purchase made in the field by our various employees.

 

On our Sales side, we spend a considerable amount of time verifying that the proper Sales Tax we collected at each jurisdiction has been identified at the proper rate.  The additional complication of varying rates within jurisdictions is something we cannot comply with without considerable initial cost, and vastly increased verification time each month.

 

We spent July and August trying to figure out how to track customer exemptions and still have ourselves benefit from this legal mess with our own “Qualified Exemption’.  We failed. 

 

We cannot comply in this system.

 

The cost is too high, our risk for fines is too high, the clerical errors are too high, and the verification time is too high.  Of particular concern, in attempting to explain the difficulty and risk associated with this ‘Exemption’ to one of the BOE auditors over the telephone was that I could not force a vendor to change his Sales Tax Rate on a particular invoice.  His response was to “Get a new vendor.”  We cannot comply with this law to benefit ourselves or our customers under the present scheme.

 

Which means I have lost my best protection against the State of California’s Board of Equalization—scrupulous documentation and prompt payment as due.

 

On our Purchase side, on the other hand, we can quite accurately identify the amount of Sales Tax paid for each vendor invoice we process.  We can identify by Co., by plant location, by vendor, by date billed, by date charged, and by date paid.

 

The State of California is attempting to pit Customer against Vendor.  They expect that I would go to a Vendor to claim a discovered refund due because I directly paid the vendor.  The vendor would have already paid the State.  This is typical of California.

 

I suspect that this scheme is a way for California to show the world that it has become a manufacturing friendly State.  But within five years will begin investigations on Manufactures that ‘cheated’ and ‘stretched’ the law.

 

Proposed Solution

 

We continue to assess, collect and pay our Customer Sales Tax based on the customary system by denying customers a claimed exemption and we continue pay the full sales tax to our vendors based on the current system. 

 

Once a quarter we file a ‘BOE Form 101 Claim for Refund’ by supplying detail for all ‘Qualified’ vendor sales tax we paid during the quarter, by ‘Qualifying Co.’.  We will also suggest that our Customers file directly to the BOE using the ‘BOE Form 101 Claim for Refund’ on their own behalf.

 

At BOE Audit time, we are able to support the Sales Tax we collected on behalf of the State, and we are able to support our Claim for Refund in detail.

 

The State benefits as regular tax payments are received on a monthly basis and the State has sufficient time to verify Claims for Refund. 

 

This solution seems much less costly and time consuming for both the State and the manufacturers it was intended to benefit; and my sense of ‘cleanliness’ is satisfied.

 

09/02/2014

OldPhart OutIn TheDesert

 

Tue, 09/02/2014 - 18:07 | 5173209 himaroid
himaroid's picture

Hard for people to understand how fucked up it is unless they have their own business.

Tue, 09/02/2014 - 18:19 | 5173258 Cthonic
Cthonic's picture

Family moved a small manufacturing business from Van Nuys to Vegas back in the nineties due to all the intrusive CA state oversight.  Truly toxic environment back then, can't imagine it's any better now.

Tue, 09/02/2014 - 18:27 | 5173280 Escrava Isaura
Escrava Isaura's picture

Cthonic,

Try opening one in Brazil!

 

By the way, if we all play by the same rules and regulations, it's all fear game.

 

But the rules are there to crash competition.

 

Tue, 09/02/2014 - 21:01 | 5173829 TahoeBilly2012
TahoeBilly2012's picture

Certificates you mean "resellers" permits, I assume. Super huge pain in the ass. Fact is, small businesses who simply operate "black" fill in a huge gap, but once you try to grow.....have fun, bullseye on your back.

Wed, 09/03/2014 - 05:27 | 5174681 OldPhart
OldPhart's picture

No, these are not 'Resellers Permits'.  These are specific project type exemptions that don't eliminate the sales tax, merely reduce it.  "Resellers Permits' are built into the system as totally exempt, this is a whole new animal.  One that is partially exempt...sometimes.

Tue, 09/02/2014 - 18:23 | 5173269 Escrava Isaura
Escrava Isaura's picture

 

himaroid,

Welcome to the real world.

“America’s elites know that capitalism is totally unworkable. We try to impose it in the 3rd world so we can destroy them”Noam Chomsky

 

By the way, I did own a bussines in the US. Had 22 people working for me.

Tue, 09/02/2014 - 22:13 | 5174034 TheReplacement
TheReplacement's picture

That quote is complete bologna.  We haven't had real capitalism in this country for a very, very long time.  It should say that cronyism backed by fiat world reserve currency is totally unworkable.

Tue, 09/02/2014 - 22:10 | 5174019 Mr. Ed
Mr. Ed's picture

.

OldPhart,

The goverment psychopath who created the situation where you found that:

"The cost is too high, our risk for fines is too high, the clerical errors are too high, and the verification time is too high."

saw no difference between you and a piece of furniture.  And no one will rein this type of individual in because to some people, the ability to make impossible demands is an exhilerating form of power.

The other reason the music goes on is that bureaucratic rules and process are the fuel that fires bureaucratic enterprise.  The more fuel, the better!

Still, people stand by, watch and say nothing... big wheel keeps on turnin'

Wed, 09/03/2014 - 06:01 | 5174685 OldPhart
OldPhart's picture

One of the reasons that I'm calling the scheme out is just what you said.  I put this out here to see the comments of Zero Hedgers and expected much harsher criticism.

I will be making a presentation at our next Executive/Managers meeting and will be submitting my article to the LA Times and other media.

What is happening is that we only have 'Proposed Regulations' pushed out in July, that we are expected to comply with as of July.  There currently is no law on this.  Yet I've already received two partial exemption certificates from our customers.  Luckily for us, we weren't structured to accomodate these exemptions and they were billed the full sales tax.

When the BOE comes to audit our Sales Tax payments, they will use the information we have to target their next victim...those that claimed exemptions.  I do not want to be a source of their attacks on our customers.

On the other side, the exemptions that I claim will be fully documented and the tax will have been paid in full up front.  They, the BOE, will not have cause to deny my claim (though my fuel tax refunds due from California go back two years).

I expect to see a flurry of class-action lawsuits on these partial exemptions, as well as lawsuits against vendors by customers.  I want nothing to do with any of this mess other than to let our customers know, up front, that they will have to claim their refund directly from the State...as I will.

And as to the 'piece of furniture' and 'exhilaration'...this is my 'I refuse to comply' moment.  I'm rejecting their scheme, calling them out on it, in fact, and attempting to do it ethically.

Wed, 09/03/2014 - 09:50 | 5175243 nofluer
nofluer's picture

Ummm... is this a complaint or a suggestion for accountants about a work-around?

Taxes - it's what accountants are FOR. Without complex tax rules and penalties, there would be no need for accountants. (Says the former tax specialist) I once got a client a tax penalty rebate (assessed before I was involved). I was later told by a taxing authority officer that it was the first penalty rebate he'd seen in 14 years.

Tue, 09/02/2014 - 18:07 | 5173194 Cthonic
Cthonic's picture

It's shrinking, 200ft below sea level, and saltier than the Pacific, not to mention composed of some nasty ag runoff.

edit:  Imperial Irrigation District sells water to San Diego, some of which is diverted to Salton Sea.  Requirement for diversion lifts in 2018.

Tue, 09/02/2014 - 18:06 | 5173207 dirtscratcher
dirtscratcher's picture

That wouldn't make sense. The Salton Sea is saltier than the ocean and much farther away from L.A. Which is probably why some idiot politician will seriously propose it. 

Tue, 09/02/2014 - 21:27 | 5173913 Amish Hacker
Amish Hacker's picture

The fact that the sea is there at all is testament to idiot politicians (and engineers) in the past. The Salton Depression is nearly as far below sea level as Death Valley, and over geologic time has alternated from dry desert basin to freshwater lake many times. Most recently, it became a "sea" when a development company tried to divert Colorado River water to irrigate crops there, but heavy rainfall in 1905 overwhelmed their system. Ooops. It took two years to fix things, and during that time most of the Colorado River flowed into the Salton Depression, creating the Salton Sea. It is saltier than the ocean, but less salty than the Great Salt Lake or the Dead Sea.

Wed, 09/03/2014 - 00:20 | 5174378 RichardP
RichardP's picture

Pretty smelly, too.

Tue, 09/02/2014 - 18:41 | 5173326 Van Halen
Van Halen's picture

I've been saying this to people for years. Los Angeles and Las Vegas technically should not exist since they are sitting smack dab in the hottest desert in the country.

Wed, 09/03/2014 - 01:18 | 5174464 RichardP
RichardP's picture

Las Vegas maybe.  But not Los Angeles.  Being by the ocean, it is kept pretty mild.  That is why people settled here.  People settled in Las Vegas because of the Hoover Dam.

Tue, 09/02/2014 - 20:40 | 5173760 Majestic12
Majestic12's picture

"OldPhart"?

Or should we say "JuliaS"?

Fucking trolls are like ticks...sucking life and leaving disease.....

....posting huge amounts of nothing to push good comments down and out....

Death to the trollls!!!! 

Preferrably by WOOD CHIPPER !!!!

Wed, 09/03/2014 - 00:32 | 5174401 NuckingFuts
NuckingFuts's picture

As mentioned above:  you have been here 4 weeks.  STFU or GTFO.

Wed, 09/03/2014 - 05:44 | 5174691 OldPhart
OldPhart's picture

S'ok, let him rant.  This is fight club.

He's just gotta learn the ropes.

Tue, 09/02/2014 - 17:43 | 5173120 GeezerGeek
GeezerGeek's picture

Can TPTB rehypothecate water? Is that what happened?

Wed, 09/03/2014 - 10:02 | 5175295 nofluer
nofluer's picture

"Can TPTB rehypothecate water?"

Why, SURE they can! Bankers and brokers can rehypothecate ANYTHING!

"Is that what happened?"

Ummmm.... maybe....? Ask the FRB where Germany's gold is, then ask them where Californicate's water is. Prolly get about the same answer.

Tue, 09/02/2014 - 18:57 | 5173398 astroloungers
astroloungers's picture

"Did the water disapear or just go somewhere else?"

A:  It's mexicans hosing down the driveway and gutter.

B:  Golfers enjoying lush green rough areas.

C:  I think the dingo drank your water.

Tue, 09/02/2014 - 21:34 | 5173928 Freddie
Freddie's picture

California needs more illegal aliens.  That will fix it.  California liberal Democrats voted for this.

Tue, 09/02/2014 - 23:20 | 5174219 tempo
tempo's picture

Global warming, no problem precious 500 stocks and beautiful 30 are at ATH. Central planning at work. no water, but ATH for stocks.

Tue, 09/02/2014 - 17:18 | 5172993 potato
potato's picture

Environmentalists: don't build dams to save water for future years! Think of the desert turtles!

Nevermind that aquatic environments have their own, diverse ecosystems. Think about areas of the earth where two dissimilar environments meet, like oceans and land. They are some of the most populated areas on earth, precisely because of the unique interactions that happen at these boundary areas. 

Tue, 09/02/2014 - 17:53 | 5173163 Doubleguns
Doubleguns's picture

Wonder if Kalifornia will keep the water levels up in the rivers for the snail darter or what ever that tiny fish is. 

Tue, 09/02/2014 - 21:51 | 5173985 Hobo Sapien
Hobo Sapien's picture

Reservoirs are ecologically more like a desert than a lake, that's why any fish you catch in one have been bred in a hatchery then used to "stock" the "lake". Trout spawn in shallow waters where the temperature of the water is fairly constant and warm. Reservoirs are generally flooded, steep-sided canyons - no place for the trout to spawn. No "diverse ecosystem."

Tue, 09/02/2014 - 17:20 | 5173002 Bangin7GramRocks
Bangin7GramRocks's picture

Are all pools in California empty? Are all town fountains empty? Until then, fuck all this. Just more shuckin' n jivin'.

Tue, 09/02/2014 - 17:34 | 5173063 Froman
Froman's picture

I was curious about that as well.  When they had problems back in the mid- to late 1970s everyone had to drain their pools.  They may be doing that but I have not heard about them doing it yet.

Tue, 09/02/2014 - 17:50 | 5173150 walküre
walküre's picture

I can imagine that only Californians would come up with that "water saving" strategy.

You know "draining pools" so that the water goes back into "Mother Earth" and all her ails are cured.

They did this in the Seventies when everyone was still either stoned out of their minds or just waking up.

Tue, 09/02/2014 - 19:30 | 5173541 boodles
boodles's picture

I used to have a house in far north scottsdale AZ.  A few years ago, when fires came close to the crest of the mountains to our north, firefighters came by my home and asked if they could drain my pool to fill their truck. 

Of course, I said, "YES."

Two of my neighbors refused!

Tue, 09/02/2014 - 20:45 | 5173747 HobbyFarmer
HobbyFarmer's picture

Wonder if they were keeping their pools full in case the fire reached their home and the firefighters deserted the place....what would they do then if their own pool had been emptied saving somebody else's home?

Gave you a +1 for helping out the neighborhood.  Until the fire is raging around me, not sure how willing I would be to give something precious up to the common good.

I am prepping for hard times ahead.  While I do give a lot away as gift/charity/kindness, there is a limit.  I am willing to give from my excess....not so sure if I'd be giving from my own requirements.

+1 for you in this situation, but again, not sure I'd be willing to drain my reserve water source for the needs of others.  You know?

 

Wed, 09/03/2014 - 05:57 | 5174694 OldPhart
OldPhart's picture

Back in the 70's I was a kid unknowingly raising a rustled steer for 4-H.

That drought desimated the area I lived in.

However, people didn't have 'pools' in the Mojave Desert...we had 'Resovoirs' of water that was used to water our livestock and homes.  Back then, the windmills you saw in the desert were there to pump water (though one farmer asked me to help him move a shitload of car batteries he had rigged up to his windmill to help power his house along with pumping water).

People were creative.  One ranch (Sky High Dude Ranch) had, shit, a mile(?) of black pipe running across an acre or so that totally replaced a water heater.  It even worked in the winter, though the water was more warm/lukewarm in the shower.  The rest of the year it was scalding hot.

We had/have tanks that stored water, of course, but those resovoirs served multiple purposes.  Watering livestock and the house, a bit of a cooling dip, and a fire department reserve available as needed.  Back then, it was a given that you lent a hand to a neighbor and reciprocity was so expected that the fire department wouldn't have fathomed even asking for permission.

What a wonderful world we have today.

Tue, 09/02/2014 - 18:45 | 5173335 Van Halen
Van Halen's picture

Where is all the 'science' I heard so much about to get the 80 quintillion gallons of ocean water into LA and make it drinkable? We seriously cannot do this yet as a society?

Tue, 09/02/2014 - 18:58 | 5173402 trulz4lulz
trulz4lulz's picture

Libya was doing it in North Africa, we bombed the shit outta that place with depleted uranium, then straiffed the concrete river that delivered the water, for Freedumb.

Tue, 09/02/2014 - 19:58 | 5173630 Dr Strangemember
Dr Strangemember's picture

There's a huge De-Sal plant in Tampa Bay FL.... guess Cali is a bit behind.

Tue, 09/02/2014 - 21:02 | 5173818 grunk
grunk's picture

That's why Mark Suckerbeg wants more illegals; so they can use their food stamps to build desalinization plants.

Tue, 09/02/2014 - 17:23 | 5173006 NOTaREALmerican
NOTaREALmerican's picture

When the government stops approving new housing developments we're out of water.   Before then,  it's just noise. 

Tue, 09/02/2014 - 17:23 | 5173014 Escrava Isaura
Escrava Isaura's picture

NOTaREALmerican,

It has more to do with demographic.

Tue, 09/02/2014 - 17:30 | 5173041 NOTaREALmerican
NOTaREALmerican's picture

Yeah,   but - eventually - if we're out of water there won't be any more water for the new houses, some of which are being built in my bucolic college town right now.   

But, yeah, it's all demographic and developer clout. 

Tue, 09/02/2014 - 19:03 | 5173226 Escrava Isaura
Escrava Isaura's picture

NRA,

The point I was making is that:

Demographics play a bigger and larger role in destroying the environment than the government.

 

But, not if you're an Amish! Their demographics do no harm.

 

Tue, 09/02/2014 - 17:22 | 5173011 Bangin7GramRocks
Bangin7GramRocks's picture

Hopefully, the drought does affect food production. That irradiated land is only growing poison anyway. I try not to buy anything grown on the west coast.

Tue, 09/02/2014 - 17:50 | 5173153 Caviar Emptor
Caviar Emptor's picture

Drip irrigation is the answer: drip showers , drip pools, drip water parks and drip washing machines.

As long as eveyone agrees to smell a little worse and shift from water sports to sand sports, there's really no problem

Tue, 09/02/2014 - 22:34 | 5174089 Freddie
Freddie's picture

New Fuki drip with MOX and Plutionium 235.  For the best vegetables money can buy.  Also dusted with illegal alien feces filled with TB and other third world diseases.

Tue, 09/02/2014 - 19:13 | 5173467 Handful of Dust
Handful of Dust's picture

I've cut my consumption of anything from Cali down to less then 10%. Who needs more radiation cancer initiatives. There's enough crap in our environment already. You know the Fuki thingy on the West Coast when: A) the Gubmint stopped taking measurements; and B) when the Gubmint said<"don't worry, it's safe."

That scared the crap out of me reminding me of when the Japanese PM told his peeples 2 days after the plant mega-disaster that, "It's only a tiny leak."

 

It's all simply Phuked! Used to be a nice State, great weather and lots of Hippies.

Wed, 09/03/2014 - 06:32 | 5174716 August
August's picture

When the Golden State is ultimatley absorbed into Mexico, it will a major positive for both Mexico, and the USA.

I must admit that the above is a spinoff of the old adage that whenever a New Zealander migrated to Australia, the average IQ of both countries went up.  Some principles are indeed universal....

Tue, 09/02/2014 - 17:24 | 5173012 JustObserving
JustObserving's picture

Aren't all the drone attacks on women, children and wedding parties coming from California?  Maybe, the droner-in-chief can drone some water for Kali.  Karma can be such a bitch sometimes.

BTW, Kali is Hindu Goddess of death.  Suicide is painless.

https://www.youtube.com/watch?v=4gO7uemm6Yo

Tue, 09/02/2014 - 17:25 | 5173020 NOTaREALmerican
NOTaREALmerican's picture

Re:  Aren't all the drone attacks on women, children and wedding parties coming from California? 

No, the EIR's were talking to long to fill out.    I think they come from South Dakota now.

Re;  BTW, Kali is Hindu Goddess of death.

I didn't know that.   

Tue, 09/02/2014 - 17:34 | 5173028 JustObserving
JustObserving's picture

Kali Sanskrit:, also known as Kalika (Sanskrit:), is the Hindu goddess associated with empowerment,shakti. She is the fierce aspect of the goddess Durga (Parvati).[1] The name Kali comes from kala, which means black, time, death, lord of death: Shiva (Wiki)

Kali is often depicted riding a tiger and wearing a garland of skulls.

Tue, 09/02/2014 - 19:05 | 5173432 trulz4lulz
trulz4lulz's picture

Kali Ma Shakti de! Kali Maaaaaa Shakti de! Kali Ma Shakti de!

Tue, 09/02/2014 - 21:48 | 5173979 cherry picker
cherry picker's picture

How would anyone know if suicide is painless?  All of the succesful suicides I have ever heard of in my life, the subject wasn't able to communicate to the living whether his or her death was "painless".

Those that failed in a suicide attempt couldn't tell you either as they are sill alive.

Wed, 09/03/2014 - 17:43 | 5177348 nofluer
nofluer's picture

How would anyone know if suicide is painless? Because that was the name of the theme song on MASH. Had to be right.

Tue, 09/02/2014 - 17:26 | 5173022 the wet spot
the wet spot's picture

Residents in L.A. are still allowed to water their yards 3 times a week so it's not *that* bad.

Tue, 09/02/2014 - 20:04 | 5173646 candyman
candyman's picture

Used to walk out 1/2 mile into Folsom lake a few months ago, no boating last weekend, you could see the bottom.

Tue, 09/02/2014 - 22:13 | 5174036 Abbie Normal
Abbie Normal's picture

3X a week can mean thousands of gallons per house depending on the time and flow rate.

Too bad it doesn't come out of their drinking water ration.

Tue, 09/02/2014 - 17:32 | 5173056 NOTaREALmerican
NOTaREALmerican's picture

WOW,   What would an arkstorm cost if "the big one" hit right in the middle of the storm?    (What else could happen at the same time?)

Tue, 09/02/2014 - 17:38 | 5173090 OldPhart
OldPhart's picture

That would be our luck, an ArkStorm, then the tremendous crack to drain the water back to Mexico.

Wed, 09/03/2014 - 17:48 | 5177372 nofluer
nofluer's picture

What for you wanna go talking about Mexican cracks? This is a FAMILY web site!

Tue, 09/02/2014 - 17:43 | 5173113 Cthonic
Cthonic's picture

Or shortly thereafter, triggered by recharging of reservoirs and aquifers.

Tue, 09/02/2014 - 18:50 | 5173362 Professorlocknload
Professorlocknload's picture

Arkstorm.

Damn, sounds like an average winter in Crescent City, CA!

Tue, 09/02/2014 - 19:15 | 5173480 Handful of Dust
Handful of Dust's picture

The article on 'arkstorms' sure uses the word 'hypothetical' alot.

Tue, 09/02/2014 - 17:27 | 5173033 Racer
Racer's picture

How can a lake be 104% full ?

It is either 100% full or overflowing or lower than 100%

Does it have an expandable lake bed to allow for the extra capacity?

Tue, 09/02/2014 - 17:32 | 5173053 Cthonic
Cthonic's picture

104% of historical fill, but only 93% of total capacity.

Tue, 09/02/2014 - 17:34 | 5173064 NOTaREALmerican
NOTaREALmerican's picture

Some of the dams have inflatable devices that add a few inches in length.   (Let's see if the ads change).

Tue, 09/02/2014 - 17:39 | 5173071 Cognitive Dissonance
Cognitive Dissonance's picture

100% represents the designed or planned amount of water in the reservoir when it was created, usually to be held back by a dam. Often after the dam is built engineers decide they can safely hold more water behind the dam than was originally thought or designed. Total capacity is often (much) higher than what they normally hold.

That's my story and I'm sticking to it. :-)

Tue, 09/02/2014 - 17:52 | 5173158 GeezerGeek
GeezerGeek's picture

Call your corps (pronounced corpse) of engineers for overflows exceeding an extra 4%.

Tue, 09/02/2014 - 20:43 | 5173773 spieslikeus
spieslikeus's picture

If you like your corpse.....

Tue, 09/02/2014 - 19:05 | 5173428 silverserfer
silverserfer's picture

most dams are built to be flood control. They have levels considered 100% but are built to hold an extra 10% for short periods of time. Ususally the last  10-50 feet (depending on the construction and length of the dam) up to the rim of the dam. 

Wed, 09/03/2014 - 17:51 | 5177386 nofluer
nofluer's picture

How can a lake be 104% full ? Easy. Just use a measuring stick created by a UC Berkley Grad

Tue, 09/02/2014 - 17:31 | 5173043 401K of Dooom
401K of Dooom's picture

Watch out everybody!  Cali will begin to requisition water from other parts of the country.  This means that they will siphon off water from the Great Lakes in order to save the Delta Smelt and the Illegals.  Think I am making this up?  Then tell me how we got into this situation where non-citizens get more rights then we who obey the laws of this country.

Tue, 09/02/2014 - 17:37 | 5173076 NOTaREALmerican
NOTaREALmerican's picture

Exactly,  it'll be the first Canal funded by the Chinese and built by Mexicans with whites bitching about both.

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