SACRAMENTO – George Runner announced recently that 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,” said Runner. “These non-cash deposits exceed more than $40 million statewide.”
The board is authorized by state law to collect security deposits from new and existing businesses in case a business defaults on tax payments to the board. However, of the nearly $300 million in security on deposit with the state, only a small percentage was drawn down each year — making the program no longer cost effective for the state.