Posted by: Andy_Johnson on 04/08/2014 03:02 PM
Updated by: thepinetree on 04/08/2014 03:38 PM
Expires: 01/01/2019 12:00 AM
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Board of Equalization Returns More Than $27 Million in Cash Deposits
Sacramento, CA ... The California State Board of Equalization (BOE) is returning approximately $27.6 million in cash deposits to more than 5,000 businesses in California and out-of-state, announced BOE Member George Runner today. The refunds come as a result of a Board decision to end automatic security deposit requirements for new businesses. Runner fought for this change, and his colleagues joined him in voting to end the policy in December 2013. “Thousands of business owners throughout California are receiving a welcome surprise in their mailbox,” said Runner. “Rather than a notice of a new tax, fee or audit, they’re getting a check from the State of California marked ‘SECURITY REFUND.’”The BOE began issuing checks this week, and will continue to do so for the next few weeks. With these latest numbers, the Board’s December 2013 vote has led to the release of more than $95.4 million in security deposits to taxpayers who have good reporting and payment histories. However, state law requires that the BOE continue to collect security deposits from its non-retail licensees who sell cigarettes and tobacco products, regardless of payment history...
The Board’s December action also eliminated the automatic security requirement upon registration for a seller’s permit. The former policy required a minimum deposit of $2,000 in cash, bonds, or guaranties up to a maximum of $50,000 which had to be sent to the BOE within 30 days from the date the application for a seller’s permit was submitted. The BOE released approximately $40.2 million in bonds and guaranties earlier this year.
“We took a close look at the program and found it didn’t make sense for taxpayers or the state,” said Runner. “Security was rarely applied, and staff time and energy were needlessly being diverted from assignments that yield real revenue for the state.”
Despite the Board’s general policy change, the BOE may still require taxpayers with a history of late payments or delinquencies with the BOE to post a security deposit.The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects $56 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.
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