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CA Proposition 39: Tax Treatment for Multistate Businesses

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> United States > California > Propositions > 2012 Referendums > Prop 39 - Tax Treatment for Multistate Businesses

Office

Type

Referendum

Filing Deadline

March 19, 2012 - 12:00pm

Polls Open

November 06, 2012 - 09:00am

Polls Close

November 06, 2012 - 10:00pm

Term Start

November 07, 2012 - 12:00am

Term End

December 31, 9999 - 12:00pm

Contributor

RBH

Last Modified

RBH December 14, 2012 08:26pm

Data Sources

[Link]

Description

TAX TREATMENT FOR MULTISTATE BUSINESSES. CLEAN ENERGY AND ENERGY EFFICIENCY FUNDING.
INITIATIVE STATUTE.
• 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 Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact:
• Approximately $1 billion in additional annual state revenues—growing over time—from
eliminating the ability of multistate businesses to choose how their California taxable
income is determined. This would result in some multistate businesses paying more state
taxes.
• Of the revenue raised by this measure over the next five years, about half would be dedicated
to energy efficiency and alternative energy projects.
• Of the remaining revenues, a significant portion likely would be spent on public schools and
community colleges.

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