California delays sales tax payments for small businesses

Move designed to help small businesses survive the coronavirus outbreak

LOS ANGELES, Calif. (KYMA, KECY) - California Governor Gavin Newsom says the state will let businesses keep up to $50,000 in sales tax over the next year.

The move means businesses with $5-million in sales, or less, will get up to a year to give the state up to $50,000 in sales taxes they collect from customers. It's essentially an interest-free loan aimed at keeping small businesses afloat during the coronavirus outbreak.

The action could have a significant impact on the state's more than $200 billion state budget. Most of the state's revenue comes from sales and income taxes. State officials have already delayed the income tax deadline by three months to July 15.