Monday, February 10, 2025
42.1 F
Roseville

California Returning Millions to Business Owners

This spring thousands of business owners throughout California are receiving a welcome surprise in their mailbox. Rather than a notice of a new tax, fee or audit, they’re getting a check from the State Board of Equalization.

No, we’re not talking about annual income tax refunds from the Franchise Tax Board. These checks are marked “SECURITY REFUND” and represent a dramatic shift in how California’s elected tax board welcomes new businesses to our state.

Previously new corporations and LLCs were forced by the BOE to turn over anywhere from $2000 to $50,000 of their own money as security before they could make a single legal taxable sale. This “security” was held just in case a business might default on its taxes during its first three years of operation.

It was a uniquely California-style shake down. Rather than encourage new business start-ups, the government robbed them of the capital they needed to be successful, only to sit on it for three years before returning it.

I took a close look at the program and found it didn’t make sense for taxpayers or the state. Security was rarely applied, and staff time and energy were needlessly being diverted from assignments that could yield real revenue for the state.

At my urging, the Board of Equalization voted in December to end its long-standing security policy. Going forward, the Board will require security only when a business has a history of non-payment or poses a high compliance risk.

So far, we’ve identified nearly 10,000 accounts with security totaling $95.4 million eligible for release. We are releasing this security back to its rightful owners. Nearly all non-cash refunds, like bonds, TCDs and guaranties, are already out the door. Cash refunds begin mailing this month.

A breakdown of cash deposits being released is available by city.

Small business owners, entrepreneurs and others who do business in our state are some of the bravest people I know. We owe them our gratitude for the jobs they create and the billions in tax revenue they generate. These dollars pay for shared priorities like schools, public safety and roads.

Although California continues to have some of the highest tax rates and most burdensome regulations in the nation, the Board’s vote sends a signal that California is not beyond hope. Elected officials can work together in a bipartisan manner to make commonsense changes that help small business owners and entrepreneurs be successful.

Gary Toebben, President and CEO of the Los Angeles Chamber of Commerce, writes: “On behalf of business owners throughout California, we thank the Board of Equalization for doing the right thing for California and our economy. We hope that this is just the start of smart legislation and regulatory reform by government at all levels during 2014 to seek out and eliminate unnecessary regulations that stand in the way of job creation.”

Gary’s right. If we want jobs and revenue, the best way to bring it about is by helping business owners be successful in our state. The Board’s new security deposit policy does just that. Let’s look for other opportunities to do the same.

George Runner represents more than nine million Californians as a taxpayer advocate and elected member of the State Board of Equalization.



Brighter Side

Trending

Job Opening: Sr. Manager, Data Management

5 yrs exp. design, modify, dvlp., write & implement software programming apps & code software. BS deg req’d.

LA-Z-Boy Home Furnishings & Décor in Roseville

Transform your living room and bedroom with La-Z-Boy's comfortable home furniture. Shop for sofas, couches, recliners, chairs, tables, mattress in a box, and more today.

Roseville Pleasant Grove Creek Trail closure for critical repairs

Roseville, Calif. - The trail crossing over Pleasant Grove Creek is closed for critical repairs between Old Coach Drive/Phillips Park and the Orchard View Road trailhead parking lot.

RG Philips Park in Roseville

RG Philips Park "This 6.5 acre park features a children’s...

Roseville welcomes US Quadball West Coast National Qualifier to Maidu Park

Roseville, Calif. - Quadball, an action-packed sport that evolved from the Harry Potter novels, will hold its only West Coast national qualifier Saturday, Feb. 8, and Sunday, Feb. 9 at Maidu Regional Park in Roseville.

Topics

Job Opening: Sr. Manager, Data Management

5 yrs exp. design, modify, dvlp., write & implement software programming apps & code software. BS deg req’d.

LA-Z-Boy Home Furnishings & Décor in Roseville

Transform your living room and bedroom with La-Z-Boy's comfortable home furniture. Shop for sofas, couches, recliners, chairs, tables, mattress in a box, and more today.

Roseville Pleasant Grove Creek Trail closure for critical repairs

Roseville, Calif. - The trail crossing over Pleasant Grove Creek is closed for critical repairs between Old Coach Drive/Phillips Park and the Orchard View Road trailhead parking lot.

RG Philips Park in Roseville

RG Philips Park "This 6.5 acre park features a children’s...

Roseville welcomes US Quadball West Coast National Qualifier to Maidu Park

Roseville, Calif. - Quadball, an action-packed sport that evolved from the Harry Potter novels, will hold its only West Coast national qualifier Saturday, Feb. 8, and Sunday, Feb. 9 at Maidu Regional Park in Roseville.

The Crepe Stop in Roseville

The Crepe Stop in Roseville. Savory & Sweet. Crepes, Pancakes, Waffles, Gelato, Boba Tea.

Roseville Today Super Bowl party picks for Eagles and Chiefs game

Roseville, Calif.- This Sunday at the Superdome in New Orleans, the Philadelphia take on the Chiefs in Super Bowl 59. A super-sized rematch and unofficial national holiday of $8 million dollar commercials, food and drink and a little football.

Quarry Oaks Apartments in Rocklin

Quarry Oaks Apartments in Rocklin, Calif.

Related Articles

Local Spotlight

Mobley Pest Services in Roseville serving the community and region for over 20 years

Roseville, Calif.- Fully licensed and bonded, Mobley Pest Services in Roseville has been providing reliable pest control services for well over 20 years. Serving residents and businesses in the greater Placer and Sacramento region, Mobley Pest Services is locally owned and operated in Roseville.

Sacramento Naturopathic Medical Center emphasizes the use of prevention and natural therapeutics

Sacramento Naturopathic Medical Center is a professional primary care natural medicine committed to helping all people reach their full potential – mind, body and spirit.

Paul Black’s Solar Panel Cleaning in Roseville serving the region for over 30 years

Roseville, Calif. - Money-saving solar panels in Roseville, Rocklin and throughout South Placer County have become ubiquitous From new residential solar communities continue to big business and after market installation, solar seems to be a smart choice to shred those high monthly electric costs.