The California Corporation Commission is expected to approve a $1 billion settlement on Monday that will allow Google, Microsoft and Yahoo Finance Corp. to pay $100 million of liabilities and penalties.
The money, which includes $100.5 million in deferred compensation and $100,000 in debt relief, will come from the California Taxpayers Relief Fund, which was established by Proposition 13 to provide funding for certain state and local governments in California.
The California Taxpayer Relief Fund was created in the 1990s to help pay for various public education, healthcare, education-related and other programs.
Under the settlement, the companies will also have to pay fines of $1 million for the violations and $10 million for failing to provide required disclosures.
Google and Yahoo finance were the primary beneficiaries of the Proposition 13 fund, which also helped pay for the construction of the Cal State San Bernardino campus.
The companies were also ordered to create a plan for paying back the money.
“The companies and their affiliates have already taken substantial steps to resolve their outstanding liabilities and comply with the provisions of Proposition 13,” said Commissioner Joseph F. Calabrese, in a statement.
“This settlement will provide relief to the affected entities and will also allow the companies to reduce their legal and compliance costs by creating a comprehensive plan for the payment of their outstanding debt.”
The companies have already started work on the plan.
The deal is a huge victory for the tax-payers and the tech industry, which have been struggling financially since the California government enacted Proposition 13.
The state has a reputation as one of the most expensive states to do business in, with its high tax rates and a complicated tax code that can be complex and difficult to navigate.
California has also faced a wave of wildfires that have destroyed homes and destroyed millions of dollars in property.
The wildfires have cost California state and federal taxpayers $4.4 billion.
The settlement with Google and the other tech companies will give the companies an additional $10.5 billion to pay down the tax debt, Calabresel said.
The news came just weeks after the California state Legislature passed a measure that was expected to create an $8 billion fund to pay off state and other public pension obligations.
The fund, called the California Teachers Retirement System Benefit Plan, will be used to help cover payments owed by state and public employees and to help fund the cost of providing health care to the state’s 1.3 million retirees.
The company was the primary beneficiary of the California Pension Benefit Guaranty Corporation Fund, the money that was supposed to be used by Google and other tech businesses to pay back their tax debts.