FAIRFIELD — It pays for California businesses to maintain good books and to pay their taxes on time.
That’s the message from the State Board of Equalization, which is sending refunds to businesses across the state that do just that.
The refunds total some $27 million in cash deposits to more than 5,000 businesses, the state agency announced Monday. A total of 44 Solano County businesses will share more than $293,000.
Vallejo will see the largest combined refund for the most number of businesses, while businesses in Vacaville will see the largest average refund.
The refunds are the result of a change on practice at the State Board of Equalization.
New corporations and limited liability corporations were previously required to provide a security deposit before they could record a single taxable sale, according to the state board. The deposits were collected in the event the businesses failed to pay taxes during its first three years in operation.
The Board of Equalization voted in December to release more than $95 million in security deposits to businesses that have good reporting and payment histories.
New regulations eliminate the automatic security requirement upon registration of a seller’s permit, according to a press release from the state board. State law still requires the board to continue to collect security deposits from nonretail licensees who sell cigarettes and tobacco products, regardless of payment history.
The Solano County breakdown by city and combined refund:
The State Board of Equalization may still require businesses with a history of late tax payments or delinquencies with the board to post a security deposit, according to the release.
Reach Glen Faison at 427-6925 or email@example.com. Follow him on Twitter at www.twitter.com/GlenFaison.