California small businesses can keep up to $50,000 in sales tax receipts for the next year as the COVID-19 outbreak has forced people to stay home and many shops to close. Basically, businesses may defer payment of sales and use taxes of up to $50,000, for up to 12 month without fine or penalty. They will still need to collect it, but they can use it to keep their business afloat during this times of market instability.

For those who don’t know, sales tax is an additional amount of money people pay based on a percentage of the selling price of goods and services that are purchased. For example, if you purchase a new television for $400 and live in an area where the sales tax is 7%, you would pay $28 in sales tax. California’s current sale’s tax is 7.25%.

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