State Vendors Required to Pay Real Taxes on the State's Fake Money

If the State of California pays you with Monopoly money as they have any number of vendors, you have to pay real taxes even if you can't cash the state's IOUs:

Small businesses that received $682 million in IOUs from the state say California expects them to pay taxes on the worthless scraps of paper, but refuses to accept its own IOUs to pay debts or taxes. The vendors’ federal class action claims the state is trying to balance its budget on their backs.

Lead plaintiff Nancy Baird filled her contract with California to provide embroidered polo shirts to a youth camp run by the National Guard, but never was paid the $27,000 she was owed. She says California “paid” her with an IOU that two banks refused to accept - yet she had to pay California sales tax on the so-called “sale” of the uniforms.

I wonder how many vendors an afford to just stop doing business with the state? I'll bet any that can will stop taking their orders.