Lingle: Use hotel tax money for state budget
Legal Topics | 2009/12/23 04:51
Faced with a $1.2 billion budget gap, Gov. Linda Lingle on Monday proposed the state take about $100 million in hotel taxes from Hawaii's four counties next year and delay the payment of some personal and corporate income tax refunds.

The governor's supplemental budget for the 2011 fiscal year that begins July 1 does not call for wholesale layoffs or an increase in the number of furlough days state workers are already taking.

It does call for a big increase in the tax that insurance salespersons pay on their commissions and the elimination of dozens of positions in agencies that focus on mosquito control, adult mental health, family health and agricultural statistics.

But her proposal to swipe roughly between $99 million and $111 million in county hotel taxes in each of the next three fiscal years is likely to face opposition from the state's counties, which rely on the tourism-driven assessment.

Honolulu County, where the bulk of the state's tourists visit, would lose almost $45 million in the 2011 fiscal year; Maui would lose nearly $23 million; the Big Island, $18.6 million; and Kauai, $14.5 million. The Legislature must approve the transfer.



Pittsburgh won't tax tuition; nonprofits to donate
Legal Topics | 2009/12/22 04:52
Pittsburgh officials shelved an idea for a first-of-its-kind tax on college tuition after two universities and a nonprofit health insurer agreed on Monday to make large contributions to the city.

Mayor Luke Ravenstahl hopes the contributions from the University of Pittsburgh, Carnegie Mellon University or Highmark Inc. will serve as a catalyst to get other nonprofits to help the city financially.

Ravenstahl had called for the 1 percent tuition tax on the city's 65,000 college students as a way of getting money to help pay for some $15 million a year for the city's pension obligations.

Nonprofits are exempt from most taxes, but represent many of Pittsburgh's major employers and hold about one-third of the city's property value.

Neither the mayor nor the three institutions would disclose how much they would give, but Ravenstahl said he was optimistic the money would help resolve the city's long-standing financial problems.



Bill would give undocumented legal status
Legal Topics | 2009/12/16 04:47
Hispanic, black, Asian and other House lawmakers backing immigration overhaul called Tuesday for legalizing illegal immigrants in the U.S., despite a weakened economy and joblessness.

The coalition of lawmakers said Tuesday immigration reform can protect American workers as well as bring into the mainstream economy productive immigrant workers who have lived in the shadows because of their illegal status.

"For those who say that given the state of our economy, given the unemployment rate, this is not the time, I would say to you there is no wrong or right time. There is a moral obligation," said Rep. Nydia Velazquez, D-N.Y., chairwoman of the Congressional Hispanic Caucus.

Rep. Luis Gutierrez, D-Ill., who has become a leader of a multiethnic coalition of immigration reform backers, said immigration reform opponents "will use it as a wedge issue and will blame everything from unemployment to rising health care costs on immigrants."



Burglars hit offices of Blagojevich's legal team
Legal Topics | 2009/12/09 04:48
Burglars broke into the offices occupied by two members of former Gov. Rod Blagojevich's legal defense team overnight and stole eight computers and a safe, police said Friday.

The break-in occurred at the South Side offices of veteran Chicago criminal defense lawyer Sam Adam and his son, Samuel E. Adam, police said. They are two of the three leading members of the team defending Blagojevich on charges that he schemed to sell or trade President Barack Obama's former U.S. Senate seat.

Chief of detectives Steve Peterson told a news conference that detectives don't know whether anything related to Blagojevich's federal fraud case was contained on the computers. But he said they are interviewing the attorneys.

Even if the computers contained sensitive material related to the federal case against Blagojevich, the lawyers had all of its material in backup files on a master server elsewhere in the offices that was untouched by the burglars, according to an individual with knowledge of the legal defense team.



Lawsuit says ads in social games are scamming players
Legal Topics | 2009/12/07 19:18
Gamers are crying foul play over what they claim are misleading ads on social games.

A class-action lawsuit last month highlights what thousands of consumers say are bogus offers tied to social games available on Facebook and other social networks. The 16-page lawsuit, filed in U.S. District Court in nearby Sacramento, details how Rebecca Swift, a 41-year-old self-employed resident of Santa Cruz, Calif., was lured into accepting two "special offers" from advertisers to gain extra game credits for YoVille, a popular virtual-world game developed by Zynga.

More than $200 was illegally charged to Swift's credit card over several months, the lawsuit alleges. It seeks compensation from Facebook and Zynga for Swift and thousands of others, says attorney John Parker, who represents the plaintiff.

Zynga had no comment on the lawsuit.

It claims 90% of its revenue comes from user purchases of virtual goods. Zynga says 1 million users purchase goods each month.

Facebook says the ads came from third parties, but it takes the issue seriously. It called the lawsuit frivolous and without merit.

The lawsuit illustrates the kerfuffle over misleading social-gaming ads that have frustrated consumers and scared away legitimate advertisers, who do not want to be lumped with scamsters, says Alex Rampell, CEO of TrialPay, an online payment and promotions service.

Social games are among the hottest things going online. Millions have flocked to Facebook, MySpace and elsewhere to play free games that test their wits and skills against friends.

But to gain entry to new levels of the game, an undetermined number of players unknowingly are signing up for special offers. Some of those offers, such as an IQ test and green tea offer that Swift agreed to, automatically charge the game player.

The stakes are particularly high for Zynga, which draws more than 100 million visitors a month and is eyeing a possible initial public stock offering next year. Industry estimates peg its annual revenue at $100 million to $250 million, of which $33 million to $84 million may come from these "special offers," the suit claims.


Court again upholds Fla. homeowner tax breaks
Legal Topics | 2009/11/18 18:00

A three-judge panel Tuesday rejected another challenge to state constitutional amendments that give property tax breaks to Florida's primary homeowners, but not to owners of second homes.

The panel of the 1st District Court of Appeal disagreed with arguments that the amendments violate U.S. constitutional rights of travel and interstate commerce by favoring longtime Florida homeowners over those who have recently moved to the state.

The judges cited a July decision that also upheld the Save Our Homes Amendment, which limits annual assessment increases to no more than 3 percent for homesteads, in a case filed by out-of-state residents who own second homes.

In the new case filed by recently arrived Florida residents, the judges also for the first time upheld a new state constitutional amendment passed last year that includes a "portability" provision. It lets homeowners take at least part of their Save Our Homes benefits with them when they move.

The panel, though, returned a third appeal attacking both tax breaks to a trial judge for reconsideration because he erroneously dismissed the case on grounds that he lacked jurisdiction. That case also was filed by out-of-state residents who own second homes in Florida.

The appellate court in July ruled the tax benefit is based on the way the property is used, not on the status of the owner as a resident or nonresident. That case, now on appeal to the Florida Supreme Court, did not include the portability provision.



Fla. lawyer suspected in $1B fraud losing license
Legal Topics | 2009/11/18 18:00

A South Florida lawyer suspected of operating a $1 billion Ponzi scheme is asking for his own disbarment.

A Florida Bar committee has approved the disbarment request submitted by attorney Scott Rothstein. A spokeswoman said Wednesday the final decision must be made by the state Supreme Court.

The FBI says Rothstein sold investments in legal settlements that did not exist. The total amount lost could top $1 billion. No criminal charges have been filed yet.

Once disbarred, Rothstein would no longer be allowed to serve on a panel that nominates appeals court judges. Gov. Charlie Crist appointed Rothstein to that panel in 2008. Rothstein was a major contributor to Crist and many other high-profile politicians nationwide.



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