Assembly Bill 2671, introduced by Assemblyman Paul Cook (R-Yucca Valley), was signed into law October 11, saving small businesses owned by deployed military members from paying the $800 minimum franchise tax, if their businesses are unprofitable or defunct.
In 2005, NaVOBA member Elton Johnson contacted Cook and expressed concern over the law. Under current law, a deployed service member's company or corporation owes an $800 minimum franchise tax to the state annually regardless of whether or not it operates in the red or ceases to operate altogether. Cook introduced AB 2671 to rectify the situation.
"This tax was an insult to our military,” said Cook, who is a Marine Corps veteran. “California is burdensome enough for any business let alone one that is owned by deployed military personnel. I'd prefer that we eliminate the franchise tax altogether, but this bill is a good step in the right direction."
To learn more visit www.navoba.com/statetracker.
Comments
You must be logged into your NaVOBA forums account to post a comment.
There are no comments on this article yet.