A couple posts ago, I reported on the Board of Equalization having a Use Tax Table available for next year’s filing season. An article in today’s Orange County Register reminded me how California regulations hurt small businesses and bring in far fewer revenues than projected.
Back in 2009, the legislature passed a law that said that any business that would otherwise not have to file sales tax returns that had $100,000 or more of gross receipts would have to file Use Tax returns. Once you register for the program, you must file returns until your business closes. The law was projected to bring in $81 million in its first year, eventually rising to $651 million.
So how much has the new law brought in? A total of $56 million for all three years…at a cost of $23 million.
For small businesses, the cost to comply with the regulation continues forever (or until your business stops or leaves California).
Welcome to the Bronze State….
Tags: UseTax