BOE returns deposits to new businesses
04/07/2014 4:29 PM
04/08/2014 7:12 AM
The state Board of Equalization said Monday that it is returning about $27.6 million in cash deposits to more than 5,000 businesses in California and outside the state.
The refunds come as a result of a BOE decision in December to end automatic security deposit requirements for new businesses. BOE’s action at that time followed a staff review of statistics that showed declining benefits of requiring security deposits, compared with the cost of administering the program.
“Thousands of business owners throughout California are receiving a welcome surprise in their mailbox,” said BOE member George Runner, in a statement.
In Runner’s BOE district, the largest total amounts were being returned to business owners in Sacramento, with 44 accounts receiving a combined total of nearly $200,000; Roseville, with 22 accounts getting about $113,000; and Folsom, with 12 businesses that will receive more than $51,000.
The BOE said it began issuing checks this week and will continue to do so for several weeks.
With these latest cash refunds, the BOE said its December 2013 vote has prompted the release of more than $95.4 million in security deposits to taxpayers who have good reporting and payment histories.
State law still requires BOE to collect security deposits from non-retail licensees who sell cigarettes and tobacco products, regardless of payment history. The board also has the option of requiring taxpayers with a history of late payments or delinquencies to post a security deposit.
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