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Gov. Gavin Newsom wants sales tax relief for businesses

California’s governor on Thursday called for letting small businesses keep up to $50,000 in sales tax receipts for the next year as the COVID-19 outbreak has forced people to stay home and many shops to close.

Posted: Apr 2, 2020 2:15 PM

LOS ANGELES (AP) — California’s governor on Thursday called for letting small businesses keep up to $50,000 in sales tax receipts for the next year as the COVID-19 outbreak has forced people to stay home and many shops to close.

Gov. Gavin Newsom said the reprieve would function as a loan to small businesses, with the state not charging fines or penalties. It likely would require approval from the state Legislature, which has recessed until at least April 13.

Newsom’s proposal comes as more than 1.9 million Californians have filed for unemployment benefits since March 12, an average of more than 111,000 claims per day over the last week.

“The economic consequences are profound,” Newsom said.

The property tax proposal could have a significant impact on the state’s more than $200 billion budget. California gets most of its money from a combination of sales and income taxes. The state has already given people an extra three months to file their income taxes, meaning state lawmakers will likely have to come up with a budget this year without knowing how much money they have to spend.

But California property owners still have to pay their property taxes by April 10. Newsom has not ordered any delays on that deadline, mostly because property taxes are one of the few funding sources that bypass the state and go directly to local governments.

Newsom proposed a $222.2 billion budget in January. But Thursday, he said that proposal “was no longer operable.”

“The world has radically changed since the January budget was proposed,” he said.

For those looking for work, the state has partnered with three companies — LinkedIn, Salesforce and Bitwise — to launch a website matching people with job listings in California. Newsom said the website, onwardca.org, already has more than 70,000 job listings. Most are in the health care, agriculture, logistics and grocery industries — essential businesses not affected by the statewide “stay-at-home” order.

Governors across the country are grappling with what businesses can stay open and which ones can close. In New York, Gov. Andrew Cuomo ordered non-essential construction sites to shut down. Officials in the San Francisco Bay area have done the same. But Thursday, Newsom said he was not planning on changing the state’s guidelines listing construction workers as an essential business exempt from the statewide “stay at home” order.

“The conditions in New York are very different than the conditions in the state of California,” Newsom said. “We’re not naive about magnitude of challenge ahead of us. All of this is subject to change. But currently, I’m satisfied with those state directives.”

California Coronavirus Cases

Data is updated nightly.

Cases: 3563578

Reported Deaths: 51953
CountyCasesDeaths
Los Angeles119089421328
Riverside2894503767
San Bernardino2862912816
Orange2610223904
San Diego2596413271
Santa Clara1104221777
Kern102627826
Fresno952021443
Sacramento931801472
Alameda804961241
Ventura77534844
San Joaquin665691101
Contra Costa62164674
Stanislaus56024946
Tulare47784758
Monterey42138328
San Mateo38922515
San Francisco34213410
Santa Barbara31763409
Solano30024164
Merced28915397
Sonoma28063298
Imperial26888591
Kings21951218
Placer19763232
San Luis Obispo19612227
Madera15436209
Santa Cruz14588183
Marin13136197
Yolo12816185
Shasta10972174
Butte10941160
El Dorado9095100
Napa901469
Sutter884597
San Benito575959
Yuba573336
Lassen560119
Tehama508152
Nevada395274
Tuolumne394659
Mendocino379643
Amador345741
Humboldt318033
Lake315341
Glenn222023
Colusa212813
Calaveras190547
Siskiyou174014
Inyo128737
Mono12114
Del Norte9875
Plumas6536
Modoc4524
Mariposa3957
Trinity3675
Sierra990
Alpine810
Unassigned00
Chico
Partly Cloudy
39° wxIcon
Hi: 68° Lo: 36°
Feels Like: 39°
Oroville
Clear
46° wxIcon
Hi: 67° Lo: 48°
Feels Like: 41°
Chico
Clear
39° wxIcon
Hi: 61° Lo: 44°
Feels Like: 39°
Red Bluff
Clear
48° wxIcon
Hi: 48° Lo: 16°
Feels Like: 45°
Red Bluff
Clear
48° wxIcon
Hi: 70° Lo: 43°
Feels Like: 45°
Chico
Clear
39° wxIcon
Hi: 71° Lo: 44°
Feels Like: 39°
Windy & sunny conditions continue Sunday with more sunshine next week. Next weekend there will be a chance for some showers.
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