California – Tax Reprieve for Small Businesses
CALIFORNIA: Gov. Gavin Newsom on Thursday called for letting small businesses keep up to $50,000 in sales tax receipts for the next 12 months as the pandemic has forced many businesses to close their doors.
“No fines, no penalties will be attached, where they can take upwards of $50,000 as a loan and not have to pay the state those sales tax receipts for 12 months. In essence, it is a bridge loan. The money that you have already collected you will not have to pay the state for 12 months,” Newsom explained at a press conference.
The tax proposal could have a significant impact on the state’s budget. California gets most of its money from a combination of sales and income taxes. It likely would require approval from the state Legislature, which has recessed until at least April 13.
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