If voters approve Prop 39 multistate companies will have to pay California taxes based on sales no matter where the company’s headquarter are based.
The current law gives business the option to choose the more beneficial these two types of tax formulas.
One type of tax is “single sales tax factor” which means they will get taxed depending on the sales in California.
The other is a tax that depends on how much property or payroll multistate businesses have in the state of California.
The option to choose between the two was established in 2009 in a loophole but it did not go into effect until 2011.
A yes vote on Prop 39 will tax multistate businesses operating in California.
Even under the circumstances that they would be located in other states or countries they would need to pay the majority of California’s corporate income tax.
Financial firms and agricultural or resource extraction firms will still use the three factor formula.
Opponents to Prop 39 say that it will give the legislature a blank check to spend billions. But the proposal is that the revenue will go to energy efficiency projects of K-14 schools and other public buildings.
The people who want to stop Prop 39 say that it will cause thousands of middle class workers to lose their jobs.
They also argue that energy efficiency projects are already funded at a significant level.
Proponents argue that unemployed Californians should pay close attention to Prop 39 because it will generate approximately $1 billion to help bring as many as 40,000 jobs to California.
College students should get off the couch and vote because the state will use some of the money to help public schools, community colleges, and universities.
The beneficiaries of the current loopholes are big companies like Chrysler, General Motors, Kimberly-Clark and International Paper.
They obviously don’t want it to pass because they will lose money, but that money will help California.
So if you are complaining that there aren’t enough classes and you can’t find a job vote YES on Prop 39 on the Nov. 6 ballot.