With California Governor Gavin Newsom’s signature earlier today, an additional business license fee exemption for veterans who own a particular type of business will be coming soon.
Championed by Assemblymember Shirley Weber, Assembly Bill 498 adds sole proprietors who sell or provide services to the list of business license fee waivers, that are already available for honorably discharged veterans.
“It’s intended to provide assistance for those folks who want to start their very own small business like a graphic designer, painter or a consultant, and give just give them that boost they needed,” Joe Kocurek, Communications Director for Weber said.
Current law allows business license fee waivers for veterans who were honorably discharged from the Armed Services and reside in California, who distribute circulars and sell merchandise other than alcohol products.
However, veterans who do not sell products and instead offer services such as accountants, pet sitters, massage therapists or website designers were excluded from the fee exemption.
“For example, a veteran who sells paint would be exempt, but a veteran who provides painting services would not be exempt,” Weber said previously during a Senate Veterans Affairs Committee hearing.
She also stated that this bill will only apply to veterans who are sole proprietors in their business, and would not apply to California State professional licensing fees such as for contractors or cosmetologists.
California already does not charge business license fees for sole proprietor businesses and AB 498 would only apply to local fees which according to the bill analysis reports, would only have minor revenue loss to cities or counties.
Now that it is approved, veterans who own a sole proprietor business can apply for the business license fee exemption starting January 1, 2020 according to Kocurek.