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California waives tax penalties for businesses hit by storms

Gov. Gavin Newsom surveys storm damage in restaurants in Capitola, Calif., on Jan. 10, 2023. | Nic Coury/AP Photo/POOL

Business owners in California will not have to pay penalties if they can’t hit their tax deadlines due to the winter storms. 

Gov. Gavin Newsom said on Wednesday that his office is allowing a three-month extension of tax deadlines and waiving late payment interest and penalties as a result of the storms. 

“Business owners across the state can now access much-needed assistance to help accelerate their recovery efforts, including relief from interest and penalties,” Newsom said in a statement.

The relief comes as businesses and homeowners are facing thousands of dollars of damage, left uncertain as to how they will pay it off, as many do not have flood insurance. The state is processing applications on its website

The state tax relief is one in a patchwork of relief efforts for residents and businesses impacted by the historic storm, which is estimated to have caused more than $1 billion in damages.

President Biden declared a "major emergency" that made relief funds available to individuals in hard-hit Merced, Sacramento and Santa Cruz counties. Additional counties may be added as government officials survey the damage.

The city of San Francisco is also offering tax relief to property owners who incurred more than $10,000 of damage through the Assessor-Recorder’s Office.