► Ex. San Francisco Bay area Rep. Guy Houston, tax scofflaw Print E-mail
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Ex. San Francisco Bay area Assemblyman Guy Houston; tax scofflaw

 

From 2003 through 2008, Guy Houston represented the 15th District in the San Ramon area.
 
In a September 25, 2009 Associated Press story titled: “California Lawmakers Get Free Use of Gas Charge Cards,” Guy Houston said he used his state-issued Highlander to commute 180 miles roundtrip on most days from his home to Sacramento. Guy then said, “I’m one of those who lives just far enough away to where it takes a lot of gas and a lot of mileage to get home, but close enough where I get to go home and see my family. In six years, I haven’t cost the state one plane flight, but I do have to use a lot of gas.”
 
For those six years (2003-2008), Guy Houston’s fuel purchases and mileage are as follows:
  • 13,862 = gallons of fuel
  • $18,051.16 = costs of fuel
  • 272,588 miles driven = 45,421 yearly average 
Taxable income per IRS Pub. 15-B = Depreciation + Fuel
2003 Chevy Tahoe 4WD – 12/17/02 = $38,932.22
  1. 2003 = $10,250 + $4,607 = $14,857
  2. 2004 = $10,250 + $3,976 = $14,226
  3. 2005 = $10,250 + $7,116 = $17,366
  4. $46,449 = Total Taxable Income
2006 Highlander Hybrid LTD – 11/07/05 = $43,695.99
  1. 2006 = $11,250 + $4,911 = $16,161
  2. 2007 = $11,250 + $4,619 = $15,869
  3. 2008 = $11,250 + $9,164 = $20,414
  4. $52,444 = Total Taxable Income
IRS Publication 15-B (http://www.irs.gov/pub/irs-pdf/p15b.pdf) required that the State Controller’s Office report the income earned by Guy Houston regarding his personal use of a state car + the costs of fuel on his annual W-2. Moreover, since the State Assembly claims no logs exist to differentiate personal verses official use of state cars by assembly members, then the IRS considers the failure to maintain such logs would mean that Guy Houston would be liable for the total lease and fuel costs.
  1. $98,893 = Total Lease Value + Fuel costs
  2. $29,668 = Federal Tax Liability at tax rate of 30%
  3. $8,900 = State Income Tax Liability at 9%
  4. $38,568 = Total Tax Liability
The maximum the IRS charges in interest for unpaid tax is 25%. Therefore, Guy Houston could owe an additional $7,417, for a total of $37,085 which of course doesn’t include any applicable penalties.
 
Total Taxpayer Costs to Provide Guy Houston with a Ride
  1. $24,850 = Lease costs
  2. $34,393 = Fuel costs
  3. $6,829 = Maintenance costs
  4. $2,500 = Liability insurance costs
  5. $44,000 = Depreciation Costs
  6. $112,572 – Total costs = $18,762 yearly average
Had the state merely paid Guy Houston mileage for every legitimate mile he drove on official state business, the cost would have likely have been as follows:
  1. $15,000 = 30,000 miles x $0.50 (5,000 legitimate miles per year)
  2. $112,572 = Actual cost to taxpayers over six years
  3. $97,572 = Hosing of taxpayers by Guy Houston
Conclusion
 
With the severe budget problems facing California and the Federal Government, one would like to think that the applicable taxing authorities would vigorously pursue Guy Houston and all other legislators who have failed to pay taxes on income they earned for the personal use of state cars and fueld.

 
 

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