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
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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
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
EMERGENCY
SPILL KIT
$39.95 Kit contains:
5lb. Lite Dry
2 48” socks
8 absorbent pads
2 pair gloves
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.