Calif. tax refunds to be delayed starting Feb. 1

Parent Cafe
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<p>[My</a> Way News - Calif. tax refunds to be delayed starting Feb. 1](<a href=“HeadlineAlley”>HeadlineAlley)</p>

<p>Jan 16, 3:40 PM (ET)</p>

<p>SACRAMENTO, Calif. (AP) - California’s controller says he will begin a 30-day delay on tax refunds and other payments starting Feb. 1 because the state is running out of money.</p>

<p>Controller John Chiang said Friday he must delay $3.7 billion in payments next month because lawmakers have failed to address California’s growing deficit.</p>

<p>With a $41.6 billion shortfall over the next year-and-a-half, the state is on the brink of issuing IOUs.</p>

<p>Chiang says his office must continue education and debt payments but will defer money for tax refunds, student aid, social services and mental health programs.</p>

<p>A severe drop in revenue has left the state’s main bank account depleted. The state had been relying on borrowing from special funds and Wall Street investors; those options are no longer available.</p>

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<p>I think California should offer a convenient way for the tax return to be designated to be invested in some state account of some kind with a guaranteed rate of return in the 4-8% range with a minimum deposit term of at least 8 months but maybe even 24 months or so. If they did this, there might be a fair number of Californians who’d just opt for that rather than the cash return and the state could effectively delay the payments for a longer term in a way the taxpayers wouldn’t mind - i.e. voluntary delays.</p>

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<p>That is an excellent idea, uc-dad! How about letting parents apply it to their UC tuition bills, as well?</p>

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<p>Not a big deal, I just withholding more on my CA tax.</p>

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<p>Why withhold more on your CA taxes? It’s time to withhold less.</p>

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<p>I want to know, can I pay my property taxes with my California IOU?</p>

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<p>I was in a hurry, on my way out to see a movie. Yes I meant I was going to hold more money and pay less tax.</p>

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It would be funny to get an actual IOU from the state and send it in as payment for some other tax. </p>

<p>When you try this, post what kind of response you received.</p>

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<p>^^ :smiley: I’m sure their reply to the IOU sent back as the property tax payment will be “WTH?”</p>