Spidell's Tax Season Tribune

California by the numbers

Diane Fuller
Contributing Editor

If you google "most beautiful state in the U.S.," it's no surprise that California ranks #1 on most hits — a state described as having it all and "insanely diverse." According to U.S. News & World Report's list of "best states,"¹ California ranks #19. The overall ranking takes into account categories like health care (we're #7), infrastructure (#32), opportunity (#49), and natural environment (#5). Forbes ranks California #1 in economic climate, but overall our ranking drops to #31 when evaluating the best states for business.²

Movin' on out

According to U-Haul, which just named its top growth states for 2019, California ranks #49.³ U-Haul ranks their growth states by calculating the net gain of one-way U-Haul trucks entering the state compared to those leaving the state during the calendar year. The #1 growth state for 2019 was Florida, followed by Texas at #2. The only out-migration state worse than California was Illinois. The United Van Lines' National Movers Study confirms this trend, revealing that for 2019, California moved into the top 10 outbound states, debuting at #7.⁴

Certainly housing costs contribute to the decline in growth. The national median home listing price is $217,600. California ranks #2 for expensive housing, with a median home value of $509,400, outranked only by Hawaii at $617,400.⁵

So how does the state that ranks #1 in beauty and economic climate justify its ranking as #49 as a growth state based on outbound migration? California needs some good PR because that's a tough statistic to spin.

¹ www.usnews.com/news/best-states/california
² www.forbes.com/places/ca
³ www.uhaul.com/Articles/About/19965/U-Haul-Names-Top-Growth-States-Of-2019-Florida-Is-New-No-1/
⁴ www.unitedvanlines.com/newsroom/movers-study-2019
⁵ https://247wallst.com/special-report/2019/06/26/what-a-typical-home-costs-in-every-state-4/11/

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Breaking and entering sucks

Kathryn Zdan, EA
Editorial Director

A woman in Washington County, Oregon, called the police when she heard noises coming from behind a locked bathroom door in her home, and she could see shadows moving about under the door.

When the police arrived to the burglary-in-progress with a K-9 unit, they surrounded the house and called out to the intruder through a loudspeaker. Their calls went unanswered, and the rustling sound coming from the bathroom intensified. The officers finally broke down the door, guns drawn, and found the perp rolling around on the bathroom floor. It was the homeowner's Roomba, which had gotten stuck in the bathroom.

Aside from this minor scrape with the law, the Roomba's record was otherwise clean.¹

¹ https://katu.com/news/local/deputies-surround-burglar-in-oregon-home-find-out-suspect-is-roomba-trapped-in-bathroom

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AB 5: Trucking industry spared for now

Lynn Freer, EA
President

A federal district court temporarily blocked the application of AB 5 to any motor carrier, including truckers, operating in California, until the courts have had the opportunity to rule on whether AB 5 is preempted by federal law. (California Trucking Association, et al. v. Becerra, U.S. Dist. Ct., Southern Dist. of Calif., Case No. 2:19-cv-10645 and Case No.: 3:18-cv-02458-BEN-BLM)

On January 16, 2020, the court extended the preliminary injunction so the judge could further review the issue. There is no set date, and a ruling could come tomorrow or months from now. However, whatever the ruling, the losing side will no doubt appeal the decision.

If you need more information on Dynamex and AB 5, attend Spidell's upcoming live webinar "AB 5: Who is an Independent Contractor?" on February 14. An on-demand version is also available. Click here for more information and registration details.

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A few fun facts about this week's writers:

Diane Fuller loves to read, cook, and go to Ketchum/Sun Valley, Idaho, as many times as possible during the year with her family including grandkids and dogs.

Kathryn Zdan, EA, is obsessed with true crime documentaries and photography. On weekends, you can find her around Wilmington photographing the refineries and eating at The Chowder Barge.

Lynn Freer, EA, is a French literature major, so of course her favorite vacation destination is France. Here she is dining on mussels and fish stew near Nice.

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