Click here to live chat with one of our writers between 9am-5pm CST.
California Income Tax Calculations for Multistate Businesses (2012)
From Ballotpedia
Contents |
Supporters filed signatures to qualify the measure on May 4. The signatures will now be scrutinized and if over 504,760 signatures are found to be valid, the California Secretary of State will place the measure on the November 6, 2012 ballot.[1]
If approved, the initiative will:
- Require multistate businesses to calculate their California income tax liability based on the percentage of their sales in California.
- Repeal an existing law that gives multistate businesses an option to choose a tax liability formula that provides favorable tax treatment for businesses with property and payroll outside California.
- Dedicate $550 million annually for five years from the initiative's anticipated increase in revenue in order to fund projects that "create energy efficiency and clean energy jobs" in California.
The primary financial backer of the initiative in its signature-gathering phase is Thomas Steyer.[2]
Support
Thomas Steyer, the founder and co-senior managing partner of Farallon Capital Management, supports the initiative. He says, "We have a loophole. It is worth over $1 billion a year. We should close the loophole, and that is what we are doing."[2]
On May 10, Steyer announced that he intends to give $22 million to the campaign to pass the initiative.[3]
Opposition
Peter DeMarco, a spokesperson for a coalition of businesses that oppose the initiative, said that if approved, the initiative "going to drive workers and jobs out of California."[1]
The editorial board of the Appeal-Democrat, writing, "Steyer said the initiative would create green jobs. But taxes kill jobs by sucking money out of the private sector. Similar green-jobs claims were made about Assembly Bill 32, the Global Warming Solutions Act of 2006, by Gov. Arnold Schwarzenegger. But A.B. 32 didn't prevent state unemployment from soaring well above the national rate. California's real employment problem is not a lack of green jobs, but the state's severe anti-jobs climate, to which A.B. 32 and the specter of Steyer's initiative contribute."[4]
Ballot language
Ballot title:
Official summary:
- "Requires multistate businesses to calculate their California income tax liability based on the percentage of their sales in California. Repeals existing law giving multistate businesses an option to choose a tax liability formula that provides favorable tax treatment for businesses with property and payroll outside California. Dedicates $550 million annually for five years from anticipated increase in revenue for the purpose of funding projects that create energy efficiency and clean energy jobs in California."
Summary of estimated fiscal impact:
(This is a summary of the initiative's estimated "fiscal impact on state and local government" prepared by the California Legislative Analyst's Office and the Director of Finance.)
- "Approximately $500 million in additional state General Fund revenues in 2012-13 and $1 billion each year thereafter from requiring a single sales factor formula for corporate taxes, with about half of the additional annual revenues from 2013-14 through 2017-18 supporting energy efficiency and alternative energy projects. Increased Proposition 98 minimum funding guarantee for K-14 schools of roughly $225 million annually from 2012-13 through 2017-18 and by roughly $500 million each year thereafter, as a result of additional state General Fund revenues."
Path to the ballot
- See also: California signature requirements
- The letter requesting a title and summary for the proposed initiative was signed by Joseph Caves. Caves is also the proponent of a different initiative, the Pollution Producers To Pay for Pollution Mitigation Initiative.
- The 150-day circulation deadline for #11-0080 is June 11, 2012.
- 504,760 valid signatures are required for qualification purposes.
- Signatures to qualify the initiative for the November 6, 2012 ballot were submitted to county election officials throughout the state on May 4, 2012. Sponsors of the initiative now await word from the California Secretary of State about whether the initiative has qualified.
External links
References
- ↑ 1.0 1.1 89.3 KPCC, "Initiative to close tax exemption for out-of-state businesses to join November ballot", May 4, 2012
- ↑ 2.0 2.1 Sacramento Bee, "Tax campaign targets Capitol's inside game", January 29, 2012
- ↑ Sacramento Bee, "Billionaire will give $20 million for corporate tax hike initiative", May 10, 2012
- ↑ Appeal-Democrat, "Our View: California businesses facing new tax hikes", May 10, 2012
| ||||||||||||||||
| ||||||||||||||||||||||
