On April 2nd California Governor Newsom announced a one year reprieve on sales tax for small businesses.This effort is meant to provide business owners with the cash flow they need to meet current obligations and continue to stay afloat.
What does this mean?
Instead of business owners paying the sales tax they’ve collected through transactions back to the State government, they can keep up to $50,000 without incurring fees or penalties.
How do I know if I am eligible for this?
Small businesses with less than $5 million in taxable sales are eligible.
Is there a time limit?
Business owners can keep funds up to one year.
What if I owe more than $50,000 in sales tax for the year?
If you owe more than $50,000 in sales tax, you are still required to pay the difference.
Contact LSL if you have any questions.