prara news september 2017 prara news 2017.pdf · 7 prara news september 2017 pmaa fighting federal...

PRARA NEWS September 2017

IN THIS ISSUE...

Monthly Columns Nancy Notes 3

Articles of Interest Rack Prices 2 Advertising Rates 2 Campaign Against Illegal Gas Pump Skimmers 4

Urge EPA to Reduce the Ethanol Mandate 6

PMAA Fighting Federal Regs

that Would Harm Family Businesses 7

U.S. Commerce Dept Rules In Favor of

U.S. Biodiesel Producers 8

Product Data Standards for Heavy Duty Market 9

A&B Operator Training Class 10

CCAC Emission Re-Cert Classes 11

C-Stores Banking on Mobile Payments 12-13

PA Attny Files Criminal Charges Against

2 Business Owing State Taxes 14

Emission Re-Cert Classes 15

On the Regulatory Front 16-17

Emergency Spill Bucket Kits 17

Business for Sale 17

Member to Member Services 18-19

PRARA NEWS ESTABLISHED 1937 September 2017

2017 OFFICERS PRESIDENT

Jeff Decker

1ST VICE PRESIDENT

DENNIS BUDZYNSKI

2ND VICE PRESIDENT

Gauttam Patel

SECRETARY

Kevin Forsythe

TREASURER

John Listak

BOARD OF DIRECTORS

Jesse Huey

Dinesh Mittal

OFFICE STAFF

Executive Director Nancy Maricondi

Office Manager Tammy Combs

Secretary Clara Peters

80 YEARS OF SERVICE TO PETROLEUM RETAILERSAND AUTO REPAIR DEALERS IN PENNSYLVANIA

2


WELCOME NEW MEMBERS

Brand Reg. Mid. Prem. BP b* 1.9117 2.0787 2.3587

Citgo b* 1.8999 2.0629 2.3051

Exxon b* 1.9220 2.0795 2.3620

Gulf b* 1.9085 2.0590 2.3155

Shell b* 1.9082 2.0803 2.3841

Sunoco 1.9111 2.0511 2.3157 * 10% ethanol

Tax of .767 cents per gallon and .011 cent

indemnification fund & .001 cent Oil Spill Tax are not

included in rack price.

Superfund tax eliminated

RACK PRICES 8/31/17

Convenience Store Wholesalers

A.J. Silberman & Co………………………………...5

Liberty USA………………………………..………..8

Turner Dairy………………….……………………..2

Environmental Service

Flynn Environmental, Inc...........................................7

Groundwater Environmental Service Inc…………..12

Precise Tank Modifications........................................3

PRARA ADVERTISERS

Full page $900

1/2 page $600

1/4 page $450

1/8 page $330

Insert (one mailing) $100

Insurance

Bulava & Associates..................................................11

Jobbers / Distributors Bradigan’s....................................................................9

Reed Oil……………………………………………...6

General Contracting

Bolger Brothers, Inc………………………………..13

3


NANCY’S NOTES

Po Box 274. Madison, PA 15663

Donald J. Maughan, President Phone: (724) 446-3516

James R. Preisach, Project Manager Fax: (724) 446-0175

Quality Petroleum Contractors & Distributors DEP Certified: Pennsylvania, Ohio, West Virginia, Maryland

Underground & Aboveground Storage Tanks

>Storage System Installations & Removals

>Helium Detection Service

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>Storm Water Management Systems

>Hydrostatic Testing

>Factory Direct Fueling Components & Equipment

Precise Tank Modification, INC.

As we go into another fall season, one thing for certain is that

change is upon us. Not only in the seasons, but in our industry

as well. I was leafing through some of the publications and here

are a few of the headlines. Regulatory Landscape Bumpy for Vaping Industry.

More and More C-Stores Banking on Mobile Payments . Convenience stores are

taking on mobile ordering, delivery and drive-thru. Car dealers make more money

on used vehicles than new ones. If that isn’t enough here is the real kicker. Young

Auto Care Network Group (YANG) of the Auto Care Association will be present-

ing Yang @AAPEX during the Automotive Aftermarket EXPO in Las Vegas Nov.

1 and all professionals in the auto care industry under the age of 40 are encouraged

to attend. I didn’t realize there were any!!!!

4


To combat the use of illegal credit and debit card

"skimmers" at gas stations and ATMs in Pennsyl-

vania, four state government agencies have teamed

up to raise awareness on the use of these devices.

Skimmers are malicious card readers often attached

to an actual payment terminal that can gather data

from a credit or debit card's magnetic stripe when

inserted or swiped.

During a public demonstration of how card skimmers

operate on Thursday, leaders from the Department of

Banking and Securities, State Police, Department of

Agriculture, and the Office of the Attorney General

discussed their campaign to educate consumers, busi-

ness owners, law enforcement, and gas pump inspec-

tors statewide on the dangers of card skimmers.

"This collaboration is a prime example of the suc-

cesses that can be achieved when government agen-

cies work together for the protection and betterment

of the citizens of our commonwealth," said Secretary

of Banking and Securities Robin L. Wiessmann.

"Each of these state agencies has lent its specific area

of expertise to this cooperative effort, helping busi-

nesses protect their customers and consumers protect

themselves from financial scams."

Secretary Wiessmann offered six tips to help con-

sumers protect themselves:

-- Choose gas pumps that are closer to and within the

line of vision of the cashiers;

-- Use ATMs in well-lit, secure locations and avoid

using ATMs that are stand-alone units in corners of

stores or other out-of-the-way locations;

-- Look at the card reader slot and surrounding areas

to see if anything looks out of place, mismatched, or

loose;

-- Make sure no one is watching you enter your PIN

(or possibly filming you on a cell phone); -- Consider

using your credit card instead of your debit card to

avoid compromising your PIN and to gain other con-

sumer protections; and

-- Check your bank and credit card statements fre-

quently to watch for fraudulent activity and report

any unfamiliar activity immediately.

"The Office of Attorney General is working every

day to protect Pennsylvanians who've been scammed,

and we're partnering with the Pennsylvania Banking

and Agriculture Departments, as well as the Pennsyl-

vania State Police, to help prevent consumers from

being victimized by skimming devices at gas stations.

Working together we can protect more Pennsylvani-

ans from scams like skimming," Attorney General

Josh Shapiro said. "If you believe you've been

scammed, call our Consumer Protection Hotline at 1-

800-441-2555 or email us at

[email protected] We're here to help you."

As part of the campaign, the State Police officers

and Department of Agriculture inspectors in the field

log reported incidents into their respective tracking

systems. This logged data is then analyzed to reveal

state trends on the illegal use of skimmers and can

lead to greater protections for consumers and busi-

ness owners across the commonwealth.

"Department of Agriculture inspectors ensure that

Pennsylvanians get what they pay for at the fuel

pump," said Agriculture Secretary Russell C. Red-

ding. "While our staff check to see that pumps are

operating accurately, they're also watching for evi-

dence of suspicious activity, like illegal skimmers

that endanger consumers and businesses alike."

"Card skimming is a serious offense that that not only

affects customers and merchants locally, but has also

been known to have links to international organized

crime," said State Police Commissioner Tyree C.

Blocker.

"As skimming devices and the criminals who use

them become more sophisticated, law enforcement

agencies must work together to protect consumers

against this type of high-tech fraud."

The four agencies have developed a handout to help

identify card skimmers, know how and where to re-

port them, and understand what actions consumers

can take if they have been victimized.

Attorney General, Gov. Wolf Campaign Against Illegal Gas Pump Skimmers

5


6


Early in July, the U.S. Environmental Protection Agency released a proposed rulemaking

to implement the federal Renewable Fuel Standard (RFS).

The EPA’s proposed rule mandates that refiners blend 15 billion gallons of corn ethanol

into gasoline for 2018 which has increased the RIN values and have placed petroleum marketer

in a precarious situation.

As the blending obligations of the RFS have increased and gasoline consumption has de-

creased, PMAA is concerned “ethanol blend wall,” wherein, if every gallon of gasoline in the

nation was blended with 10 percent ethanol, we could not meet the RFS goals.

PMAA believes the best path forward to fix the inflated RIN problem is to immediately

set the ethanol mandate at 9.7 percent of projected gasoline demand as determined by the En-

ergy Information Administration.

Reducing the ethanol mandate may likely prevent obligated parties from turning to large

scale introduction of E15 blends nationwide to shore up sagging margins. This would amount to

a de facto E15 mandate and set off a chain of events, resulting in a significant disruption of the

nation’s gasoline distribution and supply chain and skyrocketing prices at the pump.

Quality GASOLINE and TRANSPORT Service Since 1972

Great Reputation, Competitive Pricing

Celebrating 25 Years of Dependable Service to Independent

Gasoline Retailers in Western PA

Contact Ron Rotolo 724-333-5964

Branded/Unbranded Gasoline, E85, Bio Diesel, On Road/Off Road, Kerosene

Email: [email protected]

Action Requested: Urge EPA To Reduce The Ethanol Mandate

7


PMAA Fighting Federal Regulations That Would Harm Family Businesses

As PMAA has reported, President Trump issued Executive Order 13789–Identifying and Reducing

Tax Regulatory Burdens– which was designed to reduce burdensome tax regulations.

Earlier this month, PMAA along with other members of the Family Business Estate Tax Coali-

tion) submitted a letter to the Internal Revenue Service regarding implementation of President Trump’s Ex-

ecutive Order.

The Executive Order calls for the Secretary of the Treasury to implement review of all significant

tax regulations issued on or after January 1, 2016 that “impose an undue financial burden on United States

taxpayers; add undue complexity to the Federal tax laws; or exceed the statutory authority of the IRS.”

In response to the Executive Order, the Treasury Department identified eight sets of regulations for

review and asked the public to comment on how these regulations should be fixed.

Pursuant to the requests of PMAA and the Small Business Legislative Council, IRS identified the

proposed regulations under Section 2704(b) of the Internal Revenue Code for consideration.

Section 2704(b) would minimize the number of estates that would be eligible for valuation dis-

counts and avoidance of double taxation via the estate, gift or transfer taxes.

PMAA has opposed the regulations since their introduction because it is fundamentally unfair to

single out family-owned small businesses for worse treatment under the tax laws than non-family-owned

businesses. PMAA and the SBLC believe that the proposed regulations should simply be withdrawn and

not replaced.

http://www.pmaa.org/weeklyreview/attachments/FBETC_Comments_to_IRS_on_RFI_Cover%20Letter.pdf

8


U.S. Commerce Department Rules In Favor Of U.S. Biodiesel Producers

Last week, the U.S. Commerce Department announced that Argentina and Indonesia have been unfairly subsidiz-

ing biodiesel they export to the U.S. The Commerce Department found that Argentina and Indonesia provide subsidies to

their biodiesel producers in violation of international trade rules. The Commerce Department also found “critical circum-

stances”, meaning retroactive duties will be enforced going back to May 2017.

As a result of the ruling, importers of Argentine and Indonesian biodiesel will be forced to pay cash deposits on

biodiesel imported from the two countries. The cash deposit rates range from 50.29 percent to 64.17 percent for biodiesel

from Argentina, and 41.06 percent to 68.28 percent for biodiesel from Indonesia. The cash deposit requirements will be

imposed when the preliminary determination is published in the Federal Register sometime next week.

Also, based on the “critical circumstances” finding, the rates for Argentina will apply retroactively 90 days from

the date of the Federal Register notice. The investigation was in response to a complaint filed by the biodiesel industry in

the U.S. The biodiesel industry representatives testified to the International Trade Commission a few months ago, saying

biodiesel produced in Argentina and Indonesia has been flooding the U.S. market since 2014.

The industry has claimed that the subsidized biodiesel from Argentina and Indonesia has forced U.S. producers

out of their home market. The Argentine biodiesel industry claims that the duties will halt Argentine biodiesel exports to

the U.S. Argentinian biodiesel currently accounts for two-thirds of the U.S.’s biodiesel imports.

PMAA is concerned that the duties on biodiesel will likely force fuel prices to rise because the U.S. must satisfy

the biodiesel quota under the RFS and will have to find a way to replace nearly 250 million gallons of biodiesel per year.

9


BETHESDA, MD – August 24, 2017 – The Heavy

Duty Distribution Association (HDDA: Heavy Duty),

a community of the Auto Care Association, has an-

nounced that it will begin the formal creation of

product data standards for the heavy duty (HD) after-

market. Preliminary development of these standards,

which will improve product data communication

across the entire HD market, is already underway.

HDDA: Heavy Duty has contracted Pricedex

Software Inc. to continue as its partner on this pro-

ject. Additionally, the association will bring together

volunteer product data experts from across 20 top

parts categories to participate on subject matter ex-

pert subcommittees for the standards’ creation.

This project was initiated to help independent

HD distributors and their supplier community to

communicate product and system attributes more ef-

fectively to provide a faster, more accurate experi-

ence for the end customer.

In 2016, HDDA: Heavy Duty conducted a

feasibility study for the standards’ creation. At

AAPEX 2016 in Las Vegas, Nev., Bill Hanvey,

president and CEO, Auto Care Association, an-

nounced that the study produced a positive result for

the ability to create HD standards. Since that an-

nouncement, several industry organizations, includ-

ing the Technology & Maintenance Council of the

American Trucking Associations, and multiple indus-

try publications, featured the data standards project in

articles and conferences.

“Product data standards mean the heavy duty

aftermarket, from manufacturer, to distributor, pro-

fessional installer, and fleet maintenance managers

will get the right part, at the right place, at the right

time,” said Hanvey. “We want to reiterate to the HD

marketplace that these will be HD standards based

upon the way the marketplace looks up and presents

its parts. We will seek the input and insight from dis-

tributors and data system providers, but particularly

manufacturers wanting to communicate product data

in a more efficient and consistent manner for all of

their customers.”

Heavy Duty Distribution Association (HDDA: Heavy Duty) Developing Product

Data Standards for Heavy Duty Market

http://autocare.org/HDDA_Develop_Product_Standards.aspx

http://autocare.org/HDDA_Develop_Product_Standards.aspx

10


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Pittsburgh , PA 15221

11


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If you’re not currently insured with us, why not join the growing number of your PRARA associates

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12


NATIONAL REPORT — For years, there has been

a buzz in the retail industry about the game-changing

mobile payment options on the horizon. Experts

touted that it wasn’t a question of if, but rather a

question of when. And it is becoming clear that the

answer is now.

In the United States, mobile payments are

expected to triple by 2021, going from $80.7 billion

in 2015 to $282.9 billion in 2021, according to a re-

port by Forrester Research. This includes three types

of mobile payments: mobile remote payment (in

app), in-person payment, and person-to-person or

peer-to-peer payment. Mobile in-person payment is

expected to grow the fastest.

“The low adoption rate of mobile payments

in the years past was majorly due to the data

breaches and security concerns of consumers,”

Yogiata Sharma, research analyst at Allied Market

Research, told Convenience Store News. “However,

with technological developments aimed at improving

security, such as EMV-enabled payments and the

standardization of the same by the government au-

thorities, it has aided the growth of contactless POS

[point-of-sale] terminals.”

Today’s consumers, especially millenials, are

more invested in mobile technology, including wear-

ables like the Apple Watch and connected cars,

noted Bryan Russell, U.S. program manager, mobile

payment and loyalty, for ExxonMobil. The oil com-

pany’s Speedpass+ app currently accepts Apple Pay

and Samsung Pay as forms of payment, in addition

to any major credit or debit card.

“They are migrating more to devices and are

expecting to be able to do their transactions and in-

terface with brands using these platforms,” Russell

said. “Our capabilities as an industry, with the point-

of-sale and cloud computing, enables us to serve

those needs, and they continue to improve and en-

hance.”

The target customer for mobile payments is

between the ages of 19 and 32, showing a high utili-

zation of mobile wallet payments. Customers are

often more willing to use mobile payments if there

are incentives or a special discount tied to it, accord-

ing to Sharma.

While near-field communications (NFC) and

contactless payments where consumers tap their

phone are still being used, there has been a shift

away from that, allowing for easier entry into the

mobile payment arena — many are now using mo-

bile apps for payment processing.

At ExxonMobil, the company leverages both

Apple Pay and Samsung Pay through its Speedpass+

app. When someone downloads the app, it automati-

cally recognizes if the person has either of those pay-

ment options already on their phone and lets them

know they can start using it via Speedpass+, Russell

explained.

“We make it streamlined so customers can use pay-

ment cards and wallets they already have, giving

them a more enriched experience through the app

because it integrates our loyalty program, manages

receipts, and much more — all from one mobile pay-

ment app,” he noted.

Con’t. on page 13

More & More C-Stores Banking on Mobile Payments

13


General Contracting: C-Store Site work, New construction, Additions

Petroleum Construction: Complete New Installation, Tank top Upgrades, Dispenser Replacement.

Canopy’s, Underground Tank Installation and Removals.

Sales: With a long list of products to meet your every need. Gilbarco, Passport, Veeder Root, OPW,

Franklin Fueling, Husky just to name a few.

Service: Gilbarco, Passport, Veeder Root and Passport

Site Inspections:

Bolger Brothers, Inc

1028 Burns Ave.

Altoona , PA 16601

Phone: 814-944-4059

Fax: 814-944-8766

Shell Oil Co. is another industry player offering mobile payment options to its customers via an app.

The company signed a multi-year agreement with JPMorgan Chase & Co. to accept Chase Pay at its sta-

tions across the U.S. At participating locations, customers can pay using their mobile phones either though

the Shell app or the Chase Pay app.

“Chase Pay will help Shell transform our customer experience by tying the Fuel Rewards program

to Chase Pay, giving millions of our shared customers a seamless, rewarding experience both at the pump

and in our stores,” said Dan Little, head of North America marketing for Shell, based in Houston.

Phillips 66 is also partnering with Chase Pay to launch its new mobile commerce platform for the

Phillips 66, Conoco and 76 fuel brands, driven by P97 Networks’ PetroZone solution. Using a mobile app,

customers can locate stations, pay via the mobile payment wallet, and the company can deliver contextual

commerce digital offers.

At a recent company event in Las Vegas, Phillips 66 previewed future mobile integrations with Syn-

chrony Financial; a new branded mobile debit product; a loyalty program with Kickback Rewards Systems;

and in-vehicle payment with Honda Developer Studio to allow consumers to purchase fuel from the info-

tainment unit of their car.

“There is still work to do before we see a big uptake of the connected car payment, but it will be

game-changing and very transformational,” P97 Networks’ Frieden said. “By the end of the calendar year,

we will see several automobile manufacturers that will be able to do some sort of mobile payment.”

Since the rollout of mobile payment, ExxonMobil has seen mobile transactions increase seven-fold from

one year prior, and the average customer who uses the Speedpass+ app is purchasing two times more than

those using a third-party credit card. “Also, when integrated with the Plenti loyalty program, we are seeing

the purchases increase two and a half times more than our average customer,” Russell touted.

Con’t. from page 12

14


PA Attorney General Files Criminal Charges Against 2 Businesses Owing State Taxes, After Tax Amnesty Ended

Attorney General Josh Shapiro Friday said two central Pennsylvania business proprietors are facing criminal charges for failing to pay more than $214,000 in state sales and income taxes over the last three years. The actions follow the end of the Tax Amnesty Program on June 19 which collected $126.7 million (after costs) of the $3.47 billion businesses and individuals owe the Common-wealth. Budget negotiators in the Senate included another round of Tax Amnesty in their proposal for the current fiscal year. The charges against Lorraine Fritz, of Reel Time Automotive in Berks County, and An-drew Horton, of Parma Pizza & Grill in York County, include felony theft by failure to make re-quired disposition of funds received, as well as the willful failure to pay sales tax and submit sales tax returns as required by law. “When business owners don’t pay the taxes they owe to the Commonwealth, those are tax dollars that can never be used to provide essential services to our citizens,” Attorney Gen-eral Shapiro said. “These defendants were stealing from Pennsylvanians. Every business owner and citizen has to pay their taxes, and we’re working to ensure those who don’t pay are held re-sponsible.” Ms. Fritz, 53, of Berne Road, Hamburg, served as primary bookkeeper for Reel Time Auto, which operates as Meineke Car Care Center, and was responsible for preparing, filing and paying sales taxes for the business, owned by her husband, Dale Fritz. The business is on Penn Avenue in Sinking Spring, with a second location on MacArthur Road in Whitehall. Fritz is charged with failing to pay $119,779 in sales tax between August 2015 and May 2017. She is also charged with failing to pay $11,896 in employer withholding taxes, for a total unpaid tax liability of $131,675. Fritz has been arraigned on the charges pending a preliminary hearing on September 5. Senior Deputy Attorney General Anthony Forray will prosecute the case. In the second case, Andrew Horton, 42, of S. 2nd Street, Wormleysburg, is the owner of Parma Pizza & Grill, a restaurant and pizza shop on Haines Road in York. Although Horton was the person responsible for filing and paying sales tax for the business, he instead used those funds to cover operating costs for his pizza business. Horton is accused of failing to pay a total of $83,200 in sales tax between October 2014 and July 2017. Horton has been arraigned on the charges, and a preliminary hearing is scheduled for August 31. Deputy Attorney General Rebecca Franz will prosecute the case. The Office of Attorney General’s Criminal Division worked closely with the Pennsyl-vania Revenue Department’s Bureau of Criminal Tax Investigations on both cases, and Attorney General Shapiro praised the Revenue Department’s collaboration with his office. “Our agents work closely with investigators from the Revenue Department on these tax cases, and their collaboration is ongoing and essential,” Attorney General Shapiro said. “The vast majority of Pennsylvania businesses comply with state tax requirements. For those that don’t, we have to enforce the law and ensure honest businesses are not placed at a competitive disadvantage by those who steal taxpayer dollars,” said Secretary of Revenue Daniel Hassell. “I commend the agents in our Revenue Department and the Office of Attorney General for their collaboration and handling of these cases.”

15


10/11/2017

SIGN UP NOW

Emissions Re-Cert Class Being held in the PRARA office

October 11, 2017

6:30 PM to 9:30 PM

(412) 241-2380

$89.00 per person (non members)

$79.00 per person (members)

You may take this class up to 6 months before the

expiration date so take advantage of the location.

Limited Seating

16


As things continue to be quiet on the Hill with both chambers out on recess, we wanted to take this op-

portunity to let you know about some of the work that SSDA-AT has been doing on the regulatory side of

things.

As we previously reported, on April 21, 2017, President Trump issued Executive Order 13789. De-

signed to reduce burdensome tax regulations, the Order instructed Treasury to review all significant tax regula-

tions issued since 2016, and take action to alleviate the burdens of those regulations that (i) impose an undue

financial burden on U.S. taxpayers; (ii) add undue complexity to the federal tax laws; or (iii) exceed the statu-

tory authority of IRS.

In response to the President’s Order, the Treasury identified eight sets of regulations for review and asked the

public to comment on how these regulations should be fixed. (It’s hard to believe there are only eight sets of

IRS regulations that fit the criteria of the Order!) Pursuant to the requests of SSDA-AT and many other

groups, IRS identified the proposed regulations under Section 2704(b) of the Internal Revenue Code for con-

sideration.

Section 2704(b) applies only to family-owned businesses. The proposed regulations would eliminate

minority discounts, and largely eliminate marketability discounts, thereby making it harder and far more costly

for the older generation to gift interests in a family-owned business to the younger generation

SSDA-AT has opposed these regulations since their initial introduction on the basis that it is fundamentally

unfair to single out family-owned small businesses for worse treatment under the tax laws than non-family-

owned businesses. SSDA-AT believes that the proposed regulations should simply be withdrawn and not re-

placed and offered its comments to IRS, some of which are summarized here.

One of the biggest concerns that SSDA-AT raised is that the reality of what it takes to run a successful,

active family-owned business is not understood by Treasury and IRS. Experts who advise active family-owned

businesses know that the issues that arise among family members are similar to, and sometimes worse than,

those faced by non-related owners of a closely held business. Treasury and IRS believe that any dealings

amongst family members in a family-owned business are not arms-length – in fact, they have conjured up an

image of a family where all family members are in lockstep with each other so that they basically operate as a

single person with a single voice. They clearly have not seen many family-owned businesses in opera-

tion! Family-owned businesses play an integral role in the small business engine that fuels growth and pro-

vides jobs in this country. Therefore, though it is often difficult, it is critically important that these family-

owned businesses successfully transition to the next generation. Many of your members are family-owned

businesses, and many have existed for more than one generation. If the proposed regulations are allowed to go

into effect in their current form, not only will it be costly for family-owned businesses, but it will make it even

more difficult to successfully transition the business to the next generation.

The proposed Section 2704(b) regulations provide that certain non-commercial restrictions on the abil-

ity to transition family-owned business to the next generation should be disregarded in determining the fair

market value of an interest in that business. Initial comments on the proposed regulations, including those of

SSDA-AT, expressed concern that the proposed regulations would eliminate or restrict minority discounts and

discounts for lack of marketability, which would result in increased valuations and taxes that would increase

financial burdens for family owned businesses.

Importantly, the proposed regulations do not appear to carry out the intent of Congress as reflected in

the Conference report issued with the enactment of section 2704. This report stated that “these rules do not af-

fect minority discounts or other discounts available under present law.” However, it is hard to read these pro-

posed regulations and determine that they are about anything other than “affecting minority discounts or other

discounts available under present law”!

On the Regulatory Front

Con’t. on page 17

17


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Owner wanting to retire. Sunoco A Plus.

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Call Waheed at 724-409-7151

SSDA-AT also emphasized the concern that the proposed regulations would make

valuations more difficult by requiring two appraisals, one of which would artificially inflate the value of a

family-owned business. One appraisal would reflect the real fair market value of the business and one would

reflect the artificially higher inflated value for tax purposes. The second appraisal will be an additional expense

only for family-owned businesses. SSDA-AT believes that there is simply no justification for requiring an ap-

praiser to value an active family-owned business differently simply because it is family-owned. The apprais-

ers, in their comments, made it clear that, based upon the language of the proposed regulations, they would

have no idea how to comply with them!

Another major concern raised by SSDA-AT is that one section of these proposed regulations adds a

new “within 3 years of death” rule, ostensibly to prevent deathbed transfers. This rule would nullify transac-

tions that occurred within 3 years of death. It could also have a retroactive effective date, making it the worst

kind of regulation because a rule that didn’t even exist at the time the transaction took place would now apply

even though there was no way the family-owned business could have known the rule would even come into

existence. This illustrates Treasury’s expansion into the legislative arena – one which SSDA-AT believes

impermissibly exceeds Treasury’s regulatory mandate under §2704(b)(4). SSDA-AT sees this proposed rule as

one more trap for the unwary or the unlucky!

Although SSDA-AT made it clear to the IRS that it believes that the proposed regulations should sim-

ply be withdrawn and not replaced, SSDA-AT urged that, in the event new proposed regulations are re-

proposed instead of withdrawn, they should at a minimum (i) exempt all active family-owned businesses, (ii)

require that appraisals be based on the real fair market value of the business and not on an inflated value engi-

neered by the tax code, (iii) not include the new 3 years of death rule, and (iv) take no action which would ad-

versely impact minority and lack of marketability discounts as they stood when section 2704 was enacted.

Con’t. from page 16

18


ACCOUNTANTS

ATM

ATTORNEY

ENVIRONMENTAL TANKS &

UPGRADES

INSURANCE

LIGHTING

C-STORE DISTRIBUTORS

COMPUTERS

CONSULTING

ENVIRONMENTAL TANKS &

UPGRADES

Flynn Environmental, Inc.

Michael Flynn-Pittsburgh, PA

800-690-9409

Groundwater & Environment Svc. Inc.

Jon Agnew

Cranberry Township, PA

800-267-2549 ext. 3636

Letterle & Associates, LLC

Lou Letterle-Allison Park, PA

412-486-0600

Shockey Excavating

George Shockey

724-282-3669

George I. Reitz & Sons

Sandy Crawford

East Pittsburgh, PA

412-824-9976

McRo Construction Inc.

Donald Rothey Jr.

Elizabeth, PA

412-384-6051

MEMBER TO MEMBER SERVICES

BJAAM Environmental, Inc.

Beaver, PA

724-544-7486

Precise Tank Modifications Inc.

Donald Maughan

Madison, PA

724-446-3516

S.I.S.

J.R. Bachor-Tarentum, PA

724-224-1220

Environmental Compliance Svcs, Inc.

Brian Pine-Export, PA

888-483-7310

Bulava & Associates

Joe Bulava-Greensbug, PA

724-836-7610

Pinnacle Group LLC

Kirk Haldeman- Pittsburgh, PA

412-816-1000

LavaLux LED

Alfonso Gatta-Ambridge, PA

412-865-6007

J.E. Robinson

Murrysville, PA

412-423-1093

ATM Cash World

Tom Ranallo

Pittsburgh

800-937-3169

Albert G. Feczko

Pittsburgh

412-833-5554

A.J. Silberman & Co.

Indianola, PA

412-455-1011

Liberty USA

West Mifflin, PA

412-461-2700

Computer Solutions

Dick Norchi-Allison Park, PA

412-369-8896

Creek Run LLC

Dean Johnson-Canonsburg, PA

412-419-2981

S.I.S.


724-224-1220

19


George I. Reitz & Sons, Inc.

Sandy Crawford

East Pittsburgh, PA

412-824-9976

Bolger Brothers

Reggie Barnett-Altoona, PA

724-602-7882

Kleen-line

412-466-6277

Bolea Oil Products

Robert Bolea-Coraopolis, PA

412-264-1130

Bradigan’s Inc.

Tom Bradigan-Kittanning, PA

724-548-7654

Cross America Partners

Don Meade

412-780-5480

Glassmere Fuel Service

Dell Cromie-Tarantum, PA

724-265-4646

PARTS CLEANER

PARTS/PETROLEUM EGUIP

PETROLEUM

PETROLEUM

REMODELING

SITE INSPECTION &

TECHNICAL SERVICES

TAXES

USED TIRE PICKUP

UNDERGROUND STORAGE TANK/

LINE TESTING

MEMBER TO MEMBER SERVICES

Kehm Oil Company

George Kehm-Oakdale, PA

412-921-5200

Oil Service, Inc.

Joe Schmidlin-Pittsburgh,PA

412-771-6950

Purvis Brothers Inc.

Mack Purvis-Mars, PA

724-625-1566

PPC Lubricants

Dave Ondik

412-719-0063

R&W Oil Products

Richard Smith

McKeesport, PA

412-678-6121

Reed Oil Company

Ron Rotolo-New Castle, PA

800-922-5454

Superior Petroleum

Don Bowers-Pittsburgh, PA

412-576-2601

Center Independent

Doug Friend

724-622-4835

McRo Construction Inc.

Donald Rothey Jr.

Elizabeth, PA

412-384-6051

S.I.S.


724-279-3360


Sandy Crawford

East Pittsburgh, PA

412-824-9976

S.I.S.


724-224-1220

Robinson Young & Associates

412-423-1093

Penn Turf 814-696-7669

Dan’s 724-529-7621

Liberty 888-868-0097


Sandy Crawford

East Pittsburgh, PA

412-824-9976

20


Business Hours:

Monday 8:30-3:30

Tuesday 8:30-3:30

Wednesday 8:30-3:30

Thursday 8:30-3:30

Friday 8:30-12:00

Contact:

Phone: 412-241-2380

Fax: 412-241-2815

www.prara.com

Calendar of Events

Labor Day September 4

Grandparents Day September 10

Patriot Day September 11

Nat ’ l Cheeseburger Day Sept. 18

Petroleum Retailers & Auto Repair Association

1051 Brinton Road Suite 304

Pittsburgh PA 15221

Upcoming Events

A&B Operator Training September 14

Re-Cert Class October 11

prara news september 2017 prara news 2017.pdf · 7 prara news september 2017 pmaa fighting federal...

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