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California Delays Collecting ‘Surreal’ Back Taxes

California Delays Collecting ???Surreal??? Back Taxes
Photograph by Matthew Micah Wright/Getty Images

Last month, my colleague John Tozzi highlighted a Los Angeles Times story about outrage over California’s decision to seek more than $120 million in back taxes from those who profited from selling stakes in small companies from 2008 to 2011. The levies in question, which arose after an appeals court ruling overturned a 20-year-old tax incentive, had small business owners describing a “surreal situation” in which they were being punished despite following the letter of the law.

Now, affected small business owners and investors are singing a sweeter tune, after tax collectors said they would delay sending tax bills while the state legislature seeks to resolve the matter.