Friday, January 16, 2009
Maybe, just to exacerbate the situation by about a billionth of a percent, we'll file an extension this year to avoid promptly paying the money we owe the state of California. Those who have been sending money to Sacramento all year long, expecting tax refunds this spring, are in for a bit of a surprise it seems, according to this report at CNN/Money.
California withholds tax refundsSurely, living close enough to Sacramento that our local news comes direct from the state capital has not been a positive factor in our view of things here in the Golden State.
Cash-strapped state says those who overpaid in 2008 are out of luck, while other checks will be held for 30 days as it tries to ward off bankruptcy.
SAN FRANCISCO (Reuters) -- California will not pay tax refunds for individuals and business that overpaid 2008 taxes, in order to conserve dwindling cash for priority payments including school spending and debt repayment required by state law, the state's controller office said Friday.
Other state checks to be postponed for 30 days include payments for vendors who provide services and products to the state government and state checks to a million aged, blind and disabled Californians to cover rent and utilities bills, State Controller John Chiang's office said in a statement.
Various state officials have been warning in recent weeks that the most populous U.S. state's coffers would run dry if Gov. Arnold Schwarzenegger and lawmakers fail to balance the state's current budget. The governor in his state of the state speech Thursday said California faces insolvency within weeks if it does not balance its books.