”We need to fight together,”  Paul Menzel, CLP

Santa Barbara Bank and Trust’s discounting agreement does not pass title.  Another consideration and argument that should be made to the Franchise Tax Board is that title can only be passed if the underlying transaction is a true lease.  Otherwise the lessor never has title.  Regardless of what the document says, lessors should examine the substance of the transaction as well.

All the lessors that are arguing with the Franchise Tax Board should ban together and hire a good attorney who has experience in this area.  I would suggest Carey Boyden in Sacramento.  This is an industry challenge that we need to fight together.

It is another example of the impact of our State’s poor management and the need for revenue at all costs that are threatening the small business person.

Paul J. Menzel, CLP

Senior Vice President / General Manager

Leasing Division

SANTA BARBARA BANK & TRUST

P.O. Box 60607

Santa Barbara, CA 93160-0607

1 South Los Carneros Road

Goleta, CA 93117

Dir Ph# (805)560-1650

Email     PaulM@sbbt.com