Local Business

State regulation change returns cash to businesses

By From page A6 | April 09, 2014

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:

  • Benicia, three businesses, $10,060.
  • Dixon, two businesses, $9,071.
  • Fairfield, seven businesses, $30,651.
  • Rio Vista, two businesses, $5,111.
  • Suisun City, three businesses, $32,200.
  • Vacaville, eight businesses, $88,838.
  • Vallejo, 19 businesses, $116,844.

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 protected] Follow him on Twitter at www.twitter.com/GlenFaison.

Glen Faison

Glen Faison

Glen Faison joined the Daily Republic as managing editor in September 2009. He previously worked as a reporter and editor for daily and weekly newspapers in the San Joaquin Valley for 20-plus years. His experience includes time as editor of the Golden Eagle, a military paper serving the Lemoore Naval Air Station. He graduated from Fresno State University with a bachelor's degree in journalism and bleeds Bulldogs red. He is an avid fan of the NFL's Washington team, and attended the 1988 NFC Championship Game against the Minnesota Vikings at RFK Stadium. He's a member of the Fairfield-Suisun Twilight Rotary Club and a board member for the Solano County Library Foundation. He married his wife, Jill, in 2005, and has three children: Courtni, Tyler and Hayli.

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