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Ultimately, the decision will be by the states themselves; however, guidelines were set by the Whitehouse to provide a three-phased approach to reopening the US economy in light of COVID-19 and rising weather temperatures. The benchmarks for the beginning the first phase of lifted restriction include a sustained decrease in cases over a 14-day period and a return to pre-crisis conditions in hospitals.

PHASE ONE [see https://www.whitehouse.gov/openingamerica/#phase-one]
The phased approach encourages all individuals to continue good hygiene practices like washing hands and to “strongly consider” using face coverings in public. Further suggestion are that schools that are currently closed should remain so and employees who are able to telework should keep working from home. Large venues, including some restaurants, can operate under strict social distancing protocols. Gyms can open as long as they maintain social distancing guidelines, but bars should remain shuttered. The guidelines still recommend minimizing nonessential travel, and indicate vulnerable populations should remain sheltered-in-place.

PHASE TWO [see https://www.whitehouse.gov/openingamerica/#phase-two]
Non-essential travel may resume; however, “vulnerable individuals should continue to shelter in place. Employers should Continue encourage telework, whenever possible and feasible with business operations; close common areas where personnel are likely to congregate and interact, or enforce moderate social distancing protocols; and strongly consider special accommodations for personnel who are members of a vulnerable population. School however, can reopen.

PHASE THREE [see https://www.whitehouse.gov/openingamerica/#phase-three]
Here, vulnerable individuals can resume public interactions, but should practice physical distancing, minimizing exposure to social settings where distancing may not be practical, unless precautionary measures are observed. Still, low-risk populations should consider minimizing time spent in crowded environments. Employment can fully resume, but gyms, bars and large venues need to keep physical distance protocols.

See more info at: https://www.cnn.com/2020/04/16/politics/donald-trump-reopening-guidelines-coronavirus/index.html

The International Monetary Fund (“IMF”) expects a three percent negative change in worldwide Gross Domestic Product (“GDP”) for the year 2020. They estimate this will be the worst recession since the Great Depression. Estimates shows that GDP in the USA is expected to decrease 5.9%, signaling the second highest drop in combined economic growth; Europe is expected to experience a slightly smaller decrease in GDP.

Though this is unfortunate, there is good news. Firstly, GDP growth is expected to return in 2021, though not as fast in the U.S. as in other advanced economies. Secondly, there are tax vehicles available which can protect your assets and decrease tax burdens while the market rebuilds.

See more info at https://blogs.imf.org/2020/04/14/the-great-lockdown-worst-economic-downturn-since-the-great-depression/ or contact us here at Burton Law Firm.

Touting a decline in the spread of COVID-19 based upon occupied hospital beds, Governor Newsom is coordinating with governors in Oregon and Washington to end the statewide stay-home order he imposed nearly a month ago to slow the spread of the deadly Coronavirus pandemic. No end date was provided, and restrictions will be eased, not lifted. Still, this will hopefully be safely and smartly implemented in the upcoming weeks.

See more info at: https://www.mercurynews.com/2020/04/13/coronavirus-gov-newsom-says-west-coast-coordinating-plans-to-end-lockdowns/

Governor Newsom announced the State of California will make available $42 million to protect foster youth and families impacted by COVID-19. The foster care system has been heavily impacted by COVID-19 due to school closures and social isolation. Specifically, $27.8 million will be provided to help families stay together; nearly $7 million will support overtime and additional outreach by county social workers to foster family caregivers at higher risk of COVID-19; and $3 million will fund Family Resource Centers and provide direct support and services to foster families. Specific uses of the fund can be seen here; in short, the funds will be used to “[prevent] child abuse and neglect, strengthening children and families, and connecting families to an array of county support systems of care.”

More detail at: https://www.gov.ca.gov/2020/04/13/governor-newsom-announces-42-million-to-protect-foster-youth-and-families-impacted-by-covid-19/

The Franchise Tax Board recently announced a special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected taxpayers are granted an extension where those tax filings and payments due have been extended from April 15, 2020 to July 15, 2020. This extension expands beyond individual returns and includes Corporations, S-Corps, LLCs, Partnerships, and other entity types with returns due during this period.

Those that are “affected taxpayers” need not have been directly impacted or diagnosed with COVID-19. The language is broad enough to where taxpayers who experience any difficulty in filing or paying, as a result of COVID-19, are included in this relief. Even so, relief is not automatic, and all individuals and entities will need to self-identify on their tax returns (as one would with other natural disasters).

For more details, please see the FTB release at: https://www.ftb.ca.gov/about-ftb/newsroom/news-releases/2020-2-more-time-to-file-pay-for-california-taxpayers-affected-by-the-covid-19-pandemic.html?WT.ac=COVID-19.

With Covid-19 creating several payment delays, please remember that Property taxes have not been extended and are due Friday, April 10th. In a joint statement, the California State Association of Counties (CSAC) and the California Association of County Treasurers and Tax Collectors affirmed resilience against mounting pressure to delay taxes, stating that counties need property tax revenue to remain afloat as the COVID-19 pandemic put unprecedented strain on the resources they provide, including healthcare, emergency response and homelessness relief. Counties have the authority to forgo late penalty fees; however, all are imposing their authority differently so this is in no way guaranteed.

Property taxes are collected in two equal installments. The first installment, representing July 1st through December 31st is due on November 1st and delinquent on December 10th. The second installment, representing January 1st through June 30th, is due on March 1st and delinquent on April 10th. Payments must be received (not postmarked) by 5:00 on the delinquent date or will be assessed a 10 percent penalty. The penalties increase substantially if not paid by June 30th of that tax year.

Property taxes in Sacramento can be paid at: https://eproptax.saccounty.net/; and for Placer County at: https://www.placer.ca.gov/1417/Credit-Debit-Cards-or-E-Check.

For more info see: https://www.natlawreview.com/article/what-can-you-do-about-your-california-property-tax-payment-covid-19-s-impact

Executive Order N-44-20 prohibits sellers of any kind from increasing prices on food, consumer goods, medical or emergency supplies, and designated material goods by more than 10 percent. The order also gives additional tools to the California Department of Justice and Attorney General’s Office, among others, to take action against price gougers.

The full order can be read here: https://www.gov.ca.gov/wp-content/uploads/2020/04/4.3.20-EO-N-44-20.pdf

California small businesses can keep up to $50,000 in sales tax receipts for the next year as the COVID-19 outbreak has forced people to stay home and many shops to close. Basically, businesses may defer payment of sales and use taxes of up to $50,000, for up to 12 month without fine or penalty. They will still need to collect it, but they can use it to keep their business afloat during this times of market instability.

For those who don’t know, sales tax is an additional amount of money people pay based on a percentage of the selling price of goods and services that are purchased. For example, if you purchase a new television for $400 and live in an area where the sales tax is 7%, you would pay $28 in sales tax. California’s current sale’s tax is 7.25%.

More details: https://www.gov.ca.gov/2020/04/02/governor-newsom-announces-new-help-for-small-businesses-workers-displaced-by-covid-19/

Following 1.9 million unemployment claims in March alone, California is allocating $50 million for loan guarantees to small businesses to help eliminate barriers to capital for individuals who do not qualify for federal funds, including low wealth and undocumented immigrant communities. This “microlending” program through the California Infrastructure Economic Development Bank, aka the “IBank.” This is to help cover the gap of businesses that cannot receive help through the CARES’ Act’s Paycheck Protection Program. If you are applying for the PPP, your are exempt for applying to this program. Still, other programs may be available. Contact our form for more info or visit SBA.gov.

Applications for California’s new program will open Friday, April 3, 3030, and will be available through the state’s coronavirus portal at https://covid19.ca.gov/.

More details: https://www.gov.ca.gov/2020/04/02/governor-newsom-announces-new-help-for-small-businesses-workers-displaced-by-covid-19/

Yes, things are crazy right now. The failing financial markets, business closures, quarantines and health risks are scary. We know you need an ally. We know that our clients and our community are in need of the services and protection we offer now more than ever. So yes, we are open, and we will remain open for the duration of this crisis and beyond.

Our position as a global service provider makes us uniquely set up to support our local community at this time. We have the technological resources, the experience and the procedures to service clients at a distance. Be it through electronic filing, DocuSign, mobile notaries, remote file management, video/audio conferences or virtual reality meeting space, we have the tools and the expertise to represent your needs during this time of need.

While our physical offices in Sacramento County, San Francisco County, and Placer County are being temporarily scaled down to only essential personnel, our virtual offices have expanded exponentially. For the time being we are temporarily trading our fresh baked cookies for electronic ones. Which, while much less satisfying, are far easier on the waistline. We can accomplish anything remotely that we can do in the office. If you have trusts, wills or estates needs, our attorneys/paralegals can meet with you by phone or video to design, draft and execute said documents. And the same goes for business law, real estate, tax issues, mergers and acquisitions, international planning, employment matters, intellectual property, probate, litigation, and every other area of law we practice. All our services previously available to you remain available to you during this time.

So please do not hesitate to call, e-mail or reach out on social media. Because, yes, we are open and we are here to help