SHASTA COUNTY, Calif. – California is offering temporary tax relief and $500 million dollars to small businesses struggling because of coronavirus restrictions.
This includes a three-month automatic extension of the income tax payment deadline for businesses paying less than $1 million in sales tax. It also lets businesses with up to $5 million in sales to get interest-free tax payments.
Angie Harnden, who manages Dandelion in Downtown Redding says she closed her doors for several months because of the pandemic. While Harnden is hopeful that the holiday season can help her business bounce back, she welcomes any relief.
“In this environment when sales are down for the year due to the closures, any assistance that the government would be well received by the community and by small businesses,” said Harnden.
Businesses can start applying for tax relief today. The application is open till January 15. Businesses who plan to apply for the tax relief need to have 100 employees or less and suffered at least a 50% decrease in income tax.
Meanwhile, the California Office of the Small Business Advocate or CalOSBA is working on a program to administer the $500 million coronavirus grant. The Governor’s Office says CalOSBA will make the grant available as soon as possible.
Businesses looking to apply for temporary tax relief can click here.