California sales tax officials have eliminated security deposits for many new retailers and early next year will begin releasing some of the nearly $300 million in such assurances back to the business owners.
The state law had required the retailers post and maintain a tax security deposti for thier first three years. Corporation and limited-liability companies were required to place deposits ranging from $2,000 to $50,000.
The Board of Equalization voted unanimoulsy Tuesday to elimate that automatic requirement. The Board, which oversees sales and use-tax policies, said the cost of administering the program outwiehged the benefits.
"It's about time the started thinking about business," said Stockton chamber COE Douglass Wilhoit. He commented that he had considered the program a "money grab".
Director of the San Joaquin Delta College Small Business Development Center Nate McBride said it could make a big difference to new retailers.