Business-tax proposal could raise $1.1 billion

State legislators may suspend a business-tax deduction to pump an additional $1.1 billion into California’s coffers — a proposal that small businesses fear could hurt their bottom line.

Currently, businesses that lose money one year can take a tax deduction in the next year they turn a profit. Under the proposal from the Assembly Budget Committee, that deduction would be tabled for three years — but could be claimed in year four.

Although the proposal would affect all businesses in California, smaller firms say it will hit them the hardest.

Ninety-nine percent of businesses operating in San Francisco are small businesses with fewer than 100 employees, according to Al Dixon, director of the San Francisco Small Business Development Center.

bwinegarner@sfexaminer.com

Bay Area NewsLocalTransittransportation

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

San Francisco lacks housing data that would let it track rental vacancies and prices. New legislation is seeking to change that.<ins> (Photo by Joel Angel Jurez/2016 Special to S.F. Examiner)</ins>
Landlords blast proposal to require annual report on rentals as invasion of privacy

Housing inventory could give city better data on housing vacancies, affordability

Dr. Grant Colfax, director of the San Francisco Department of Public Health. (Kevin N. Hume/S.F. Examiner)
SF moves into purple tier, triggering curfew and business shutdowns

San Francisco moved into the state’s purple COVID-19 tier Saturday, requiring The… Continue reading

University of San Francisco head coach Todd Golden coaches his team on defense during a 2019 gameat War Memorial Gymnasium on the campus of the University of San Francisco. (Ryan Gorcey / S.F. Examiner)
Stunner in Bubbleville: USF upsets fourth-ranked Virginia

Less than 48 hours removed from a loss to a feeble UMass… Continue reading

Health care workers would be the first group in the state to receive the COVID-19 vaccine. (Go Nakamura/Getty Images/TNS)
Hope on the way: Here’s what to know about California’s COVID-19 vaccine plan

The first batch of doses could hit the state as soon as early December

The Big Game was played Friday at Memorial Stadium in Berkeley. (Shutterstock)
Stanford blocks extra point to stun Cal, win 123rd Big Game 24-23

The 123rd edition of the Big Game featured a number of firsts.… Continue reading

Most Read