Property tax fines to be waived
California Gov. Gavin Newsom said Wednesday he has signed an executive order to waive the 10 percent penalty on late residential and small business property tax payments for those unable to pay on time due to the coronavirus emergency.
Property taxes are paid twice a year. The second payment was supposed to be paid no later than April 10.
Newsom had previously cast doubt on whether any relief would be provided, but said his administration had worked with county representatives and the California Board of Equalization to come up with a plan.
“I am pleased the governor has granted these extensions,” board member Ted Gaines said. “They will provide significant relief to the many homeowners and business owners who are having a difficult time meeting their financial obligations while following the governor’s stay-at-home order due to the COVID-19 pandemic.”
The waiver will “allow people with hardships to get on payment plans and not have to experience that penalty,” Newsom said.
“We think this is significant clarification,” he said. “We think this could be significant relief, particularly that timeline that extends into the new year.”
The waiver for personal residential property taxes will extend through next May. Businesses required to file an annual property taxes statement will have until the end of the month to file, an extension from a May 7 deadline, Newsom said.
Newsom said the 10 percent penalty could be particularly “strong” amid economic uncertainty caused by the coronavirus.
“Those property taxes are so large for people, and so challenging at this time, that we wanted to provide this clarity. And the executive order will do just that,” Newsom said.
On another tax matter, the governor said he would keep a vaping tax proposal that he originally included in his January $222 billion proposal as he prepares a May revision.
The January budget included a $2 tax per 40 milligrams of nicotine, on top of existing taxes. The state was projected to raise $32 million in 2020-2021 from the tax, to be used for enforcement, youth prevention and health programs.
Newsom had formerly signed an executive order in September to crack down on stores that sell vaping devices. That mandate requires those businesses to post health risk advisories and called on California’s tax collectors to advance enforcement of the vaping industry.
Lawmakers rejected last year a bill to criminalize the possession of vape products by underage consumers. A new proposal would ban all sales of flavored tobacco products in California.
“The vaping concern is still real, despite COVID19,” Newsom said. “I think that deserves attention as well and it will have attention in terms of our budget submittal on May 14.”
Newsom’s executive orders are adding up, with another announced during his press conference to make it easier for workers who contracted the coronavirus to file for workers’ compensation.
The order allows workers who contracted COVID-19 since March 19 to file a claim under the assumption they caught the virus on the job. Newsom said the order covers “all sectors of the economy,” and will expire in 60 days.