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transcript
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
PRARA NEWS September 2017
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
PRARA NEWS September 2017
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
>Site Inspections
>C-Store Installations
>Car Wash Installations
>Design Consultation >Remediation Coordination
>Permitting & Project Management
>Fuel System Electrical Systems
>Site Preparation & Restoration
>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
PRARA NEWS September 2017
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
scams@attorneygeneral.gov 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
PRARA NEWS September 2017
6
PRARA NEWS September 2017
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: ronr@reedoil.com
Action Requested: Urge EPA To Reduce The Ethanol Mandate
7
PRARA NEWS September 2017
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.
8
PRARA NEWS September 2017
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
PRARA NEWS September 2017
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
10
PRARA NEWS September 2017
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1051 Brinton Road Suite 304
Pittsburgh Pa 15221
Phone: (412) 241-2380
Toll-Free:(800) 511-3114
Fax: (412) 241-2815
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AND AUTO REPAIR
ASSOCIATION, INC.
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Registration Form
Class Dates: September 14, 2017
Time: 8:30 am registration 9:00 class to 3:00 pm
Locations: PRARA office
Price: $275 per person (see member discount)
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Address:______________________________________________________
Phone Number_________________________________________________
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Early Registration Discount $25
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Amount______@____________
Make Check or Money order payable to: PRARA
1051 Brinton Road
Pittsburgh , PA 15221
11
PRARA NEWS September 2017
Consultants / Insurance Brokers
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who insure with Bulava & Associates. Bulava & Associates values our professional affiliation with the Petroleum Retailers and Auto Repair
Association -- and the opportunity to provide business insurance protection to members like you.
If your business is already insured through our agency, we thank you and pledge to continue working
hard to earn your trust!
If you’re not currently insured with us, why not join the growing number of your PRARA associates
who place their confidence in Bulava & Associates to protect their hard-earned assets?
For more Information, contact us today
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CCAC WEST HILLS CENTER
1000 MCKEE ROAD
OAKDALE, PA 15071
412-241-2380
EMISSION Re-Certification Course Schedule
Sept. 19, Oct. 11, Nov. 14, Dec. 20
Emission Inspection
State Inspection
12
PRARA NEWS September 2017
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
PRARA NEWS September 2017
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
PRARA NEWS September 2017
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
PRARA NEWS September 2017
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
PRARA NEWS September 2017
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
PRARA NEWS September 2017
Business for SALE
Owner wanting to retire. Sunoco A Plus.
Total volume Gas 65,000.00 gallons/month.
Grocery $80,000.00
Lottery commission $3000.00/month.
Asking $170,000.
Call 412-965-7500 Ask for Naresh
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$39.95 Kit contains:
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2 hazardous waste bags
Gasoline station for sale including land.
gasoline 70,000 gallons/month
$75,000 grocery/month
lottery commission about $1,500 dollars/month.
Asking $750,000.
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
PRARA NEWS September 2017
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.
J.R. Bachor-Tarentum, PA
724-224-1220
19
PRARA NEWS September 2017
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.
J.R. Bachor-Tarentum, PA
724-279-3360
George I. Reitz & Sons, Inc.
Sandy Crawford
East Pittsburgh, PA
412-824-9976
S.I.S.
J.R. Bachor-Tarentum, PA
724-224-1220
Robinson Young & Associates
412-423-1093
Penn Turf 814-696-7669
Dan’s 724-529-7621
Liberty 888-868-0097
George I. Reitz & Sons, Inc.
Sandy Crawford
East Pittsburgh, PA
412-824-9976
20
PRARA NEWS September 2017
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