SDCTA Opposes Proposition 39: California Clean Energy Jobs Act
Proposition 39 would significantly change California's method of corporate taxation. In 2011, California began giving companies an option to choose between a single sales factor and three factor apportionment formula. The apportionment formula is used to determine the business presence of a multistate corporation within any given state for tax purposes. It is too early to know the results of giving companies an option and changing the corporation taxation method again would create further uncertainty. Changes to corporate taxation policy should be rare to allow for businesses to make long-term decisions. New revenues from the measure would be used to fund renewable energy projects throughout California. These types of budgeting decisions should be made in the budgeting process allowing legislators to carefully weigh the importance of competing programs.