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California Briefing / Sacramento

IOUs OKd for tax payments

July 08, 2009|Shane Goldmacher

A California tax authority announced Tuesday that it would accept state-issued IOUs as payment from those who owe personal or corporate state taxes.

Taxpayers must sign the back of their IOUs and write, "Pay to the order of the Franchise Tax Board." The promissory note can then be mailed in with the tax bill, the board said.

The state began issuing the IOUs instead of checks to pay some of its bills July 2. State Controller John Chiang has said he would be forced to issue $3.2 billion in paper promises this month if state officials don't reach an accord on the budget.

Gov. Arnold Schwarzenegger and the state's legislative leaders said they were continuing to negotiate but reported no progress on efforts to balance the budget, which has a projected $26.3-billion deficit.

-- Shane Goldmacher

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