In December 2013, at my urging, the Board of Equalization voted unanimously to end the sweeping security deposit requirements the Board had previously imposed on new California corporations and LLCs. The required security had typically equaled half a year’s worth of expected taxes and ranged from $2,000 to $50,000 per company.
I am pleased to announce the Board of Equalization is making good progress in getting millions of dollars in security deposits back to California businesses.
We’re currently writing to more than 4,000 taxpayers who made non-cash security deposits, like bonds and TCDs, to let them know they are no longer required to post security. These non-cash deposits exceed more than $40 million statewide. Millions more in cash refunds will be mailed to business owners next month.
Depending on the type of security released, taxpayers may need to contact their financial institution, insurance agent or broker to complete the process of cancelling their deposit.