Takes Effect

Takes effect

California Work and business

Contractors' state tax payment plans must be in writing to avoid license suspension

Contractors with unpaid final tax debts to the state tax and fee department or the old Board of Equalization avoid license refusal or suspension only under a written installment agreement they follow. License applications must also authorize the department to share tax data.

Who it affects

Licensed contractors and contractor license applicants

When

This law takes effect on January 1, 2027. California laws take effect on January 1 of the year after they are signed, unless the law says otherwise.

Official text

California SB 1165: Contractor licenses: outstanding liabilities assessed by the California Department of Tax and Fee Administration.
On California Legislative Information. The official text is what counts; read it before you act.

Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.

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