Finra critic gets tax law passed

Elton Johnson, owner of Amerivet Securities Inc., has made a name for himself by being a thorn in the side of the Financial Industry Regulatory Authority Inc. But Mr. Johnson's activism hasn't stopped there. A lieutenant colonel in the U.S. Army Reserve currently deployed in Qatar, Mr. Johnson was instrumental in getting a law passed in California last month that exempts deployed military personnel from the state's business franchise tax. “I got hit with it while I was deployed overseas serving my country,” Mr. Johnson wrote in an e-mail. The law is informally known as Major Johnson's Law, recognizing his role in pushing for the change. Mr. Johnson first raised the idea with lawmakers when he held the rank of major. The law was written by California Assemblyman Paul Cook, R-Yucca Valley. Mr. Johnson “was one of the first people [Mr. Cook] talked to about the idea,” said Sam Cannon, Mr. Cook's chief of staff. Mr. Cook “saw [the tax] as an insult to those in service overseas, because their businesses are not operating.” The franchise tax, which has a minimum $800 yearly fee, was suspended for active military Sept. 27, the day California Gov. Arnold Schwarzenegger signed the legislation. Mr. Johnson has a lawsuit pending against Finra to force the regulator to divulge more about its operations and finances. He was also responsible for getting Finra to include in its annual proxy several proposals to increase the agency's transparency, all of which were approved by member firms in August.