Senator Thomas J. Umberg (D – Santa Ana) has announced that Senate Bill (SB) 49, the California Fair Fees Tax Credit, passed the Senate Business, Professions, and Economic Development Committee with unanimous support.
“Last month, I was proud to stand in solidarity with my colleagues as we passed Senate Bill 94, a bill that recognized the inherent unfairness of forcing California restaurants and cosmetologists, who have been routinely unable to open this year, to pay their state and local licensing fees,” said Senator Umberg. He added that, “Today’s vote shows that California is resolute in righting this wrong, through returning licensing fees to all businesses who were unable to operate.”
SB 49 reinforces the idea that businesses forced to close during an emergency should not be required to pay state and local operating fees. The bill establishes a tax credit that small businesses owners can use toward a permit, license, or other mandatory operating cost imposed by the state or a local government. SB 49 also incorporates a lesson learned throughout this pandemic by codifying a fee reimbursement process for future emergencies that force businesses closures.
After today’s vote, SB 49 will be heard in the Senate Governance and Finance Committee, and thereafter considered by the Senate Appropriations Committee. Businesses interested in sharing their insights and stories are encouraged to reach out to Zach Keller, Legislative Director in Senator Umberg’s Capitol Office, at Zach.Keller@sen.ca.gov or at (916) 651-4034.