California State and Local Tax Updates July 2019

Some underpaid taxes get break in 2020

July 31, 2019

Some California taxpayers who underpay state taxes will get a break in the first half of 2020. The CA Franchise Tax Board has announced that the adjusted interest rate charged on personal income tax underpayments and overpayments and corporate underpayments will decrease to 5% (down from 6%). The interest rate on corporate overpayments will remain at the current level of 2%. The change takes place on Jan. 1, 2020, and remains in effect until June 30, 2020.

California paid family leave (PFL) expands in 2020

July 31, 2019

The state’s PFL law currently provides partial pay each year while employees take time off from work to bond with a newborn baby or a newly adopted or foster child, or to care for a seriously ill parent, child, spouse or registered domestic partner. Currently the maximum PFL each year is six weeks. Effective July 1, 2020, the maximum PFL will rise to eight weeks. Contact Brady Ware’s tax experts with questions.

Coming soon: new application period for a valuable California business tax credit

July 17, 2019

The CA Governor’s Office of Business and Economic Development has announced that, for fiscal year 2019-2020, a total of $236,808,527 in CA Competes Tax Credits is available. Learn more about applying here: Applications will be accepted during the following periods: July 29 through August 19, 2019 ($90 million total); January 6 through January 27, 2020 ($75 million total); and March 9 through March 30, 2020 ($71.8 million, plus unallocated amounts from previous periods). This credit is an income or franchise tax credit available to businesses that come, stay or expand in CA.

Some California cities have passed higher minimum wage ordinances

July 17, 2019

Effective July 1, 2019, the following cities raised their hourly minimum wage: Berkeley’s hourly minimum wage rose from $15.00 to $15.59; Pasadena raised their rate from $13.25 to $14.25 for employers with at least 26 workers and from $12.00 to $13.25 for smaller companies; San Francisco’s minimum rose from $15.00 to $15.59; and Oakland hotel workers of hotels with at least 50 guest rooms raised their minimum to $15.00 with health benefits or $20.00 without health benefits.

California gives veterans a boost

July 3, 2019

The CA Employment Development Dept. has awarded $5 million in Veterans’ Employment-Related Assistance Program grants. The grants are expected to help about 1,200 veterans secure jobs. “EDD is proud to provide California veterans with the tools they need to transition into sustainable careers,” said EDD Director Patrick W. Henning. “This funding will help train and prepare former military personnel for high-growth civilian jobs.” Grants will be used in these counties: Contra Costa, Los Angeles, Orange, Riverside, San Diego and Ventura. The funding is part of the federal Workforce Innovation and Opportunity Act. Here’s more:

New California state website goes live with new features

July 3, 2019

When is delivery, shipping and handling taxable in California? To help businesses understand when these services are taxable, the CA Dept. of Tax and Fee Administration (CDTFA) has provided guidance in Publication 388. One of the guidelines is that delivery-related charges aren’t taxable if the sale is not a taxable transaction, or if the business ships directly to its customer by a common carrier (and the invoice clearly lists delivery, shipping, freight or postage as a separate charge).

To see the complete publication, click here:


© 2019

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