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Extortion from our state


coop

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This pertains only to Colorado just thought you would get a kick out of this.

Yesterday I received a notice from the state agriculture department that for the privilege of supporting our local and state producers of grains, fruits, vegetables or anything that comes from the ground including all farm products I must purchase a license to do this. You need to understand that our state has spent hundreds of millions of dollars promoting "Buy Colorado" and the latest program is "Colorado Proud". Now for supporting local made and from Colorado producers they insist I purchase a permit to do this. It also states that if I do not purchase this permit I will be charged with a class 6 felony. This is extortion at its best. It will effect every winery, micro brewery, distillery and any other business that uses farm products. Now the real kicker is I can purchase any and all my grains from another state and not be required to have a permit at all. I purchase my malt from Brees which is processed out of state but is from another state and that is OK. If I decide to purchase malted barley from say Colorado Malts which is a Colorado company I must purchase a permit to do this. So if I purchase the rest of my grains from say Utah, Kansas, Nebraska any other state I do not need the permit. Government run madness. Coop

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This pertains only to Colorado just thought you would get a kick out of this.

Yesterday I received a notice from the state agriculture department that for the privilege of supporting our local and state producers of grains, fruits, vegetables or anything that comes from the ground including all farm products I must purchase a license to do this. You need to understand that our state has spent hundreds of millions of dollars promoting "Buy Colorado" and the latest program is "Colorado Proud". Now for supporting local made and from Colorado producers they insist I purchase a permit to do this. It also states that if I do not purchase this permit I will be charged with a class 6 felony. This is extortion at its best. It will effect every winery, micro brewery, distillery and any other business that uses farm products. Now the real kicker is I can purchase any and all my grains from another state and not be required to have a permit at all. I purchase my malt from Brees which is processed out of state but is from another state and that is OK. If I decide to purchase malted barley from say Colorado Malts which is a Colorado company I must purchase a permit to do this. So if I purchase the rest of my grains from say Utah, Kansas, Nebraska any other state I do not need the permit. Government run madness. Coop

that's brilliant. what are they charging for the permit?

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that's brilliant. what are they charging for the permit?

I had to look this up it's so crazy. They claim they need to do this to "protect" Colorado growers from fraudulent dealers and handlers. Isn't that why you have contract laws and courts? This is just a shake down tax pure and simple. Colorado sounds like it's turning into Argentina! What a farce. Oh, and you'll need to post a bond too or have a letter of credit too. Aren't their enough laws on the books to regulate this kind of routine commerce? Hope other states don't get on this band wagon.

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You control the fixes to this problem.

First, the Colorado grain and grape growers need to be notified by all brewers, distillers, etc. that you will be looking out of state for products. And hold to that statement. Get a mass mailing out to all listed wineries, breweries, distilleries, etc. to get them on the wagon. You might have to get labels re-applied for if you say anything about Colorado grown, but unless the growers are on board with this you don't stand a chance in he_l of getting it changed.

Second, does this law effect only those with business in Colorado, purchasing from Colorado growers directly? If so, set up an LLC in another state with the sole purpose of buying Colorado product, and reselling back to you on paper, breaking the 'inside-the-border' sale.

Or, lastly, just don't bother with notifying local producers and go ahead and buy outside the state on your own. Good grain is good grain. The brandy makers are the ones with the most problem if they use fresh produce. Let them try to get it changed.

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Taxing you to spend your money supporting local people is nothing new.

Most people call it a "sales tax".

"Make your money here & spend it anywhere else in the world & we won't tax it!"

Has no logic to me, but then I live in a state that does not have a sales tax.

Mark Chapman

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Taxing you to spend your money supporting local people is nothing new.

Most people call it a "sales tax".

"Make your money here & spend it anywhere else in the world & we won't tax it!"

Has no logic to me, but then I live in a state that does not have a sales tax.

Mark Chapman

Problem is, the produce purchased is bought at a wholesale level which is exempt by all standards of commerce I've ever seen.

Put this same 'bad-tax' logic into other fields.

Let's say a tire shop which buys tires from an in-state distributor has to pay a tax on purchasing tires which he then resells. First of all, that's double taxation because the end user also pays a sales tax on the same tire.

Or larger still, a GM dealer being forced to pay a sales tax on cars purchased from GM just because they came from an assembly plant within the state.

No, the Colorado legislature must have bigger idiots than in the white house.

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UPDATE= New Colorado Law.......

Purchasing out state isn't going to help, Colorado passed HB1193 that forces all companies selling more than $100,000 in total sales to Colorado based businesses must report all transactions to the state.

Here's the link to a good site on it.

http://blog.fed-tax.net/2010/03/02/colorados-new-law/

So now you still have to pay a sales tax on ALL items purchased out of state even though for resale.

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\ If I decide to purchase malted barley from say Colorado Malts which is a Colorado company I must purchase a permit to do this. So if I purchase the rest of my grains from say Utah, Kansas, Nebraska any other state I do not need the permit. Government run madness. Coop

If you take a look at the fine print, it only involves "unprocessed" Colorado agricultural products. So you're in the clear if you buy malted barley. We're buying cherries that are destemmed. Those are also in the clear. And you can bet that we'll follow the letter of this stupid law.

We're still trying to figure out what the Cui Bono is with this law. There's two permits: one that allows you to purchase unprocessed ag. products in cash that runs $65, and one that is a bonded permit. All of us know what a pain in the ass bonding is, and that it's money flushed down the toilet. Why would you want customers to have a barrier to purchase your wares? If you don't want to extend credit, don't extend credit. Why involve Co. State legislators?

Oh, and grocery stores and restaurants are exempt from the law, which really gets me scratching my head. Maybe Coors or Bud (in Ft. Collins) have some massive unpaid bills or something. I'm trying to look at this from the perspective of a farmer, and I still can't square it. I'm sure the law makes sense for someone....I just don't know who that someone is.

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If you take a look at the fine print, it only involves "unprocessed" Colorado agricultural products. So you're in the clear if you buy malted barley. We're buying cherries that are destemmed. Those are also in the clear. And you can bet that we'll follow the letter of this stupid law.

We're still trying to figure out what the Cui Bono is with this law. There's two permits: one that allows you to purchase unprocessed ag. products in cash that runs $65, and one that is a bonded permit. All of us know what a pain in the ass bonding is, and that it's money flushed down the toilet. Why would you want customers to have a barrier to purchase your wares? If you don't want to extend credit, don't extend credit. Why involve Co. State legislators?

Oh, and grocery stores and restaurants are exempt from the law, which really gets me scratching my head. Maybe Coors or Bud (in Ft. Collins) have some massive unpaid bills or something. I'm trying to look at this from the perspective of a farmer, and I still can't square it. I'm sure the law makes sense for someone....I just don't know who that someone is.

You are right about the malted barley, but all our corn, wheat is raw and to purchase that from Colorado farmers we need to buy the permit. When I called the Dept. of Ag I was told it came into play about some distiller and his purchases of potatoes, what ever that is. It would be a civil matter. If they want to help anyone why not pass a law that states all liquor purchased for resale must be on a C.O.D. that would solve a lot of problems for us all. He also said they contacted the distiller guild here in Colorado, but I never heard anything about it from them? Not sure what they are doing for us. I have sent e mails to them with no response. I do not think any of them at the state really know what is going on. Coop

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We'll we're just going to buy the $65 permit. I can certainly understand your frustration, Coop. This is a very costly and damaging law, IMHO.

So are we I thought it was just a stupid law that I will work on to get it changed. Coop

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Take a close look at this, it specifically states that grain is NOT included in the need to get a permit.

Here's a paste from the site link which was so nicely put here by TrademarkAtty.

" WHAT IS A FARM PRODUCT?

A farm product is an unprocessed product of the soil, livestock, milk, honey, and hay. It does NOT include poultry, nursery stock, timber products, commodities*, or livestock purchased and not resold or processed within 90 days.

*Commodities are grain and dry edible beans"

So before you get the permit you might want to get a legal ruling on this.

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Take a close look at this, it specifically states that grain is NOT included in the need to get a permit.

Here's a paste from the site link which was so nicely put here by TrademarkAtty.

" WHAT IS A FARM PRODUCT?

A farm product is an unprocessed product of the soil, livestock, milk, honey, and hay. It does NOT include poultry, nursery stock, timber products, commodities*, or livestock purchased and not resold or processed within 90 days.

*Commodities are grain and dry edible beans"

So before you get the permit you might want to get a legal ruling on this.

Thank you so much for this information. I think they were just trying to bambosul us into getting a permit. Glad I posted it here. Coop

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In Maine we have to pay an annual tax as a business for any personal property (purchased with after tax personal dollars that is) that we use as part of the business. If the item was purchased with business $, then it's eligible for an exemption, (and i'm expected to kiss their hand for not taxing me). Last year i owed $65 because i listed my 4 year old desk from college and a 27" CRT TV as personal items on their required annual list of my equipment. I've since corrected this, i just don't have any personal property in the building anymore. how pointless.

Also, got notice in the mail that my tax refund from the state last year will be considered as taxable income for this year.

We feel your pain coop.

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