Family Business Assn. of California Statement on SB 726, Death Tax Bill

by | Apr 26, 2017 | Press Releases, Top News

The Family Business Association of California, an advocacy organization working on behalf of California’s family-owned businesses, issued the following statement today following the decision of Sen. Scott Wiener, D-San Francisco, to make his SB 726 a two-year bill.

 “We are pleased that Sen. Wiener has delayed action on his legislation, and will continue working with our coalition partners to persuade him to drop the bill altogether,” said FBA Executive Director Robert Rivinius. “Family businesses are the bedrock of California’s economy and our communities, and imposing a California-only 40 percent death tax would be a crippling blow to many family businesses and would cause many of them to relocate to more business-friendly states.

“California’s 1.4 million family businesses employ 7 million people. They tend to pay their employees better, train them better, and provide more generous benefits than nonfamily companies. And because they are community based, they give back generously to local organizations and help keep communities stronger. But only 30 percent of family businesses survive into the second generation, just 12 percent into the third generation, and only a tiny 3 percent operate into the fourth generation and beyond. The state should be taking steps to encourage family businesses, not tax them into liquidating or relocating.” 

FBA has assembled a coalition of nearly 50 business and farming organizations that recently sent a letter to Sen. Wiener outlining the many problems in the bill. FBA Vice Chair Ken Monroe also authored an op-ed that ran this week in Wiener’s hometown newspaper, the San Francisco Chronicle. 

SB 726 would ask voters to overturn ballot initiatives approved in 1982 to do away with the state’s estate tax. While he says the measure would only be pursued if the federal government abolishes its 40 percent death tax, nothing in the legislation states that. The tax would generate about $4.5 billion a year for state government.

FBA Takes Lead in Death Tax Fight

by | Apr 24, 2017 | Blog

Faced with a strong and growing FBA-led coalition opposed to his bill to reinstate California’s estate tax, Sen. Scott Wiener, D-San Francisco, has decided to make his SB 726 a two-year bill, meaning it will not be heard by legislative committees this year.

The Senate Governance and Finance Committee had been scheduled to take up the bill in late April, but it was pulled from the committee’s agenda at Wiener’s request.

FBA lobbyists assembled a coalition of nearly 50 business and farming organizations that recently sent a letter to Sen. Wiener outlining the many problems in the bill. FBA Vice Chair Ken Monroe also authored an op-ed that ran in Wiener’s hometown newspaper, the San Francisco Chronicle.

“We are pleased that Sen. Wiener has delayed action on his legislation, and will continue working with our coalition partners to persuade him to drop the bill altogether,” said FBA Executive Director Robert Rivinius. “Family businesses are the bedrock of California’s economy and our communities, and imposing a California-only 40 percent death tax would be a crippling blow to many family businesses and would cause many of them to relocate to more business-friendly states.”

SB 726 would ask voters to overturn ballot initiatives approved in 1982 to do away with the state’s estate tax. While Sen. Wiener says the measure would only be pursued if the federal government abolishes its 40 percent death tax, nothing in the legislation states that. The tax would generate about $4.5 billion a year for state government.

Rivinius also warned that the fight is not yet over and FBA must continue to lead the fight against the proposal.

“The best coalition is the largest one possible, and in our case that means having FBA members in every legislative district in California. Please join FBA today to help us continue the fight to defeat this dangerous bill.

Two Central Valley Family Businesses Join FBA

by | Apr 11, 2017 | Press Releases

Two Central Valley family-owned businesses have joined the Family Business Association of California, the state’s only organization devoted exclusively advocating on behalf of family businesses.

Julius Clothing of Sacramento was founded in 1922 by Julius Anapolsky and the third-generation owner now is Bruce Anapolsky. The company retails high-end men’s and women’s clothing by such designers as Armani, Ermenegildo Zegna, and Elie Tahari, as well as custom-made suits. The firm is located in Sacramento’s Pavilions Shopping Center.

Hogan Manufacturing, a steel manufacturing fabricator based in Escalon, was founded in 1944 by Walter F. Hogan, Sr., as California Blowpipe and Steel Co. and is now run by the third and fourth generations of the Hogan family. The company has 160 employees and reports sales in excess of $50 million a year. Its LIFTU division has built and installed more than 40,000 heavy-duty transit lifts in more than 500 cities throughout the U.S. and Canada.

“These companies have the foresight to support our efforts at the Capitol,” said Robert Rivinius, FBA’s Executive Director. “Unfortunately, only about 30 percent of family businesses survive into the second generation, 12 percent to the third and just 3 percent to the fourth generation and beyond. And policies being proposed and enacted in Sacramento make it harder and harder for family businesses to remain family-owned. FBA was founded to be an aggressive advocate for family businesses and we’re extremely pleased that these two companies have joined.”

As an example of the obstacles family businesses face, legislation was recently introduced that would create a new California estate tax to replace the federal tax being considered for elimination. Estate taxes are one of the biggest obstacles in allowing businesses to remain family-owned from one generation to the next.