Jay Corson

Governor Joe Lombardo Signs Sweeping Changes to Nevada Workman's Comp Rules On June 10th, Governer Lombardo signed into law Senate Bill 317 which will make several changes to the existing rules Workman's Compensation rules effective 10/1/2026. Most notably is a change to the statutory cap on payroll of $36,000 annually per employee. The change removes this hard cap and replaces the cap with an annual calculation that is published by the Employment Security Division of the Department of Education, Training and Rehabilitation each year. Per the Division, the Maximum Average Monthly Rate for Fiscal Year 2024 was as follows: FISCAL YEAR 2024: The state Average Weekly Wage for computing maximum disability compensation for Fiscal Year 2024 has been certified by the Nevada Department of Employment, Training and Rehabilitation, Employment Security Division, to be $1,178.28 per week. Nevada Revised Statutes (NRS) 616A.065 requires the average monthly wage to be capped at 150 percent of the state Average Weekly Wage, multiplied by 4.33. Maximum Average Monthly Wage $1,178.28 X 150% X 4.33 = $7,652.93. Using this calculation, the annual cap for Work Comp Payroll would be $91,835 ($7,652.93 x 12). What does this mean for Nevada Work Comp Policy Holders? We believe this change will result several market reactions .1) NCCI should and will revise all of its current rates to adjust for this modification to the cap on payroll and 2) each carrier will have to adjust their rating factors, commonly referred to as Loss Cost Multipliers. In the long term, the market will normalize and become more predictable but over the several renewal cycles, buyers of workman’s compensation insurance should expect both underwriting and audit deviations. If you and your Insurance Broker are not discussing the details of how your policies are rated and what LCM’s are being applied, ask. It’s important to work with a Broker who not only understands you business operations and can help you control your exposures, but a Broker who has the sophistication to work with the market to maximize your insurance cost.

35

4 Comments

🇺🇸 California Sales Tax – What Every Business Owner Must Know California has one of the most detailed and strictly monitored sales tax systems in the U.S. Staying compliant is essential to avoid penalties, notices, or audits from the CDTFA. Here’s a clear summary every business owner should understand: 🔹 1. Statewide Base Rate California’s minimum sales tax rate is 7.25%, but local district taxes can increase the final rate to as high as 10.25%, depending on the city or county. 🔹 2. Seller’s Permit Required Every business selling taxable goods must obtain a Seller’s Permit from the California Department of Tax and Fee Administration (CDTFA) before collecting sales tax. This includes restaurants, retail stores, e-commerce sellers, and alcohol-selling businesses. 🔹 3. Filing of Sales Tax Returns Businesses must file returns based on their assigned frequency: Monthly (high-volume sellers) Quarterly Annual Late filings result in penalties, interest, and potential compliance reviews. 🔹 4. Prepayments for Monthly Filers Businesses with high sales volume may be required to make prepayments during the reporting period. This helps avoid large end-of-period payments and ensures timely tax collection. 🔹 5. The Key Takeaway To remain compliant in California: Charge the correct rate for your location File returns on time Submit prepayments when required Maintain accurate sales and POS records Compliance today prevents notices tomorrow. #Entrepreneur #BusinessOwner #BusinessGrowth #FinanceTips #BusinessManagement #StartupLife #USABusiness #RetailBusiness #CaliforniaSalesTax #SalesTax #CDTFA #TaxCompliance #BusinessCompliance #SmallBusinessUSA #CaliforniaBusiness

6

We are thrilled to share the impressive results of our recent cost segregation study for the owner of a luxury car dealership in Southern California.  By leveraging our expertise, the owner was able to unlock an additional $1,750,000 in first-year tax deductions. Cost segregation is a strategic tax planning tool that allows businesses to accelerate depreciation deductions by reclassifying certain building components and improvements. This results in significant tax savings and improved cash flow. Additionally, we were able to save the dealership an additional $400,000 annually on their payroll taxes. #CostSegregation #TaxSavings #TaxPlanning #RealEstate #TaxStrategy #Automotive #CarDealership #payrolltax #smarttaxmoves #taxplanning #reducepayrolltax

13

1 Comment

Yesterday, the California Air Resources Board issued FAQs on SB 253 and SB 261. The FAQs address CARB's regulatory process and common questions about companies' compliance with the laws. They also reiterate that reports under SB 253 will be due in 2026 on a date still to be determined, and reports under SB 261 will be due January 1, 2026.

6

The Inland Empire’s manufacturing sector is on a roll. In April, the region posted its fourth consecutive month of growth, with a Purchasing Managers Index of 63.5 – well above the 50-point benchmark that separates expansion from contraction. (For context, the national figure was 50.7). Production here even hit its highest point in two years. That kind of sustained momentum tells a story: local manufacturers are innovating, investing, and adapting, whether it’s in advanced food processing, aerospace components, or new material production. And while many don’t realize it, much of that work qualifies for the federal R&D tax credit. The credit isn’t just for tech startups or research labs. If a manufacturer is developing prototypes, testing new processes, refining production methods, or automating workflows, there’s a strong chance they’re doing R&D in the eyes of the IRS. Yet too often, these companies leave valuable credits on the table – funds that could be reinvested into operations, hiring, or further innovation. For CPAs in our region, this is a golden opportunity. By partnering with a specialty tax team, you can help clients claim these benefits and reinvest in our local economy, keeping the Inland Empire’s manufacturing engine running strong. The growth is happening, make sure the rewards stay here, too.

9

California manufacturers: You might be overpaying on sales tax. Under California Revenue & Taxation Code §6377.1, qualified manufacturers and R&D businesses can reduce the state portion of sales tax on eligible machinery and equipment by 3.9375%. On a $2M equipment purchase, that’s nearly $80,000. The exemption applies to machinery and equipment used primarily (more than 50%) in manufacturing or qualified R&D activities. Many companies: • Pay full tax at purchase and never apply the reduced rate • Miss retroactive recovery opportunities • Assume their vendors are already handling it In practice, it often falls between accounting, tax, and operations. At Arthiva, we make recovery systematic. We map purchase data against eligibility rules, prepare documentation, and recover capital without adding operational burden. If you operate in California manufacturing or R&D, a review may be worth your time. Qualified spend should not go unclaimed. We ensure it does not. Contact us : 📩 info@arthiva.ai 🌐 www.arthiva.ai #CaliforniaTax #Manufacturing #Research #TaxRecovery #SalesTax

7

🧵 Textiles Manufacturer Expands with First Industrial Realty Trust in SoCal’s Inland Empire 🏭 Northwest Group Signs 159K SF Lease * Tenant: Northwest Group (home textiles manufacturer) * Landlord: First Industrial Realty Trust (NYSE: FR) * Location: First Harley Knox Logistics Center, 4742 Redlands Ave., Perris, CA * Size: 158,730 SF (including 9,300 SF of office) * Lease Term: 61 months * Lease Value: $7.9 million * Features: 25 dock-high doors, modern construction, excellent access to SoCal logistics hubs 🌐 Market Context * The Inland Empire remains one of the most active U.S. industrial submarkets, with leasing driven by manufacturing, e-commerce, and logistics users. * Despite cautious capital markets, tenant demand remains solid, with traditional users (like textiles and soft goods) fueling steady absorption. 📈 Recent Market Activity * CIP Real Estate & Almanac Realty Investors secured $820M refinancing for a 42-property national industrial portfolio (includes Inland Empire assets). * iDC Logistics signed an 844K SF lease in San Bernardino in July — one of 2025’s largest regional deals. 💡 Key Takeaway * Even as macro uncertainty weighs on development and financing, core industrial fundamentals remain firm — particularly in logistics-centric corridors like the Inland Empire. * Traditional occupiers continue to seek modern, efficient facilities that align with supply chain resilience and regional connectivity. https://lnkd.in/gmvUpZjj

5

Now Available: The 2026 California Customary Practices Guide!! I'm excited to share the release of our 2026 California Customary Practices Guide - a comprehensive resource designed to help real estate professionals, buyers, and sellers navigate closing costs, county transfer taxes, city transfer taxes, and customary practices across all California counties. Whether you're structuring your next deal or simply want a clearer understanding of who customarily pays what, this guide provides a county-by-county breakdown to help you stay informed and confident throughout every transaction. What's inside: - Escrow Fee customs - Title Insurance fee responsibility - County transfer tax amounts - City transfer tax rates and thresholds - Notes on how commercial transactions often vary - Up-to-date references to local county and city practices In a market as diverse as California's, clarity about customary closing practices can make all the difference. This guide is designed to support smarter conversations, smoother transactions, and better outcomes for all parties. If you'd like a copy or are interested in our National Customary practices guide, feel free to reach out - I'm happy to help!! Fidelity National Title & Fidelity National Title Builder Services #realestate #californiarealestate #escrow #titleinsurance #closingcosts #realestateresources #titleguyzac

4

The California Department of Tax and Fee Administration (CDTFA) and Department of Motor Vehicles (DMV) announced on March 6 that they are investigating auto dealers suspected of enabling customers to use the “Montana Loophole” to avoid paying California taxes and fees. Read More: https://lnkd.in/g_yTmsRX

What’s the ROI of a great hire? Ask yourself this: how much is it costing to keep a key seat open? ——— Here’s what we’ve seen from recent placements: GM in Southern California → pacing $700K+ in earnings this year, and used cars up 60% YoY. Fixed Ops Director → recruited 4 techs + 1 master tech in 8 months, and added 750 R.O.s/month across 5 rooftops. Controller in the Midwest → uncovered $250K+ in missed incentives in her first 90 days. That’s ROI. And it dwarfs the recruiting fee every time. The real cost isn’t the hire. It’s waiting too long to make it.

9

4 Comments

Washington State's new estate tax will take some getting used to as Washington residents begin to consider how to best optimize for themselves, and their heirs and beneficiaries. One of the startling facts is the direct tax cost of the estate tax, plus the requirement for non-spousal heirs to pay taxes on mandatory 10 years distributions from any retirement assets. Tax rates on IRA's at ordinary income rates plus the estate tax may mean tax rates well in excess of 50%! The time to plan is now , with your wealth advisor, estate attorney and/or CPA. And maybe even your real estate agent.

23

2 Comments