California's governor wants the state to let businesses keep up to $50,000 in sales taxes over the next year.
Gov. Gavin Newsom said Thursday the proposal would function as a state loan to small businesses, many of which have been forced to close during the COVID-19 outbreak.
The proposal would likely have a significant impact on the state's more than $200 billion state budget. Most of the state's revenue comes from sales and income taxes.
State officials have already delayed the income tax deadline by three months to July 15.