by Nile Malloy, Northern California Program Director
CBE supports Proposition 39, which will close a corporate tax loophole and use the resulting revenue for clean energy, green jobs, and schools. View our entire Voter Guide here.
Prop 39 will raise approximately $1 billion annually. It puts all businesses on a level playing field, reduces energy costs and creates tens of thousands of California jobs, according to the independent, non-partisan Legislative Analyst’s Office.
For decades, California has allowed multi-state businesses to choose between paying taxes based on their California sales, or on a formula that calculates sales, payroll and property. Multi-state corporations have been able to choose whichever method is most advantageous to them (and most detrimental to California’s environment and schools).
Prop 39 closes this loophole ensuring that companies doing business in California will be taxed on their sales in California… period.
The Proposition splits the estimated $1 billion in new annual revenue evenly between the general fund (of which roughly 40 percent must go to schools) and energy efficiency infrastructure investments which will lower energy costs in schools and government buildings.
- Require out-of-state businesses to calculate their California income tax liability based on the percentage of their sales in California.
- Dedicate $550 million annually for five years from the anticipated increase in revenue to fund projects that “create energy efficiency and clean energy jobs” in California.
- Direct at least $200 million to fund schools in the first year alone-increasing each year for several years thereafter.
Join us in voting YES on Prop 39 this November 6th.