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Proposition 39 is a ballot initiative in the state of California that modifies the way out-of-state corporations calculate their income tax burdens. The proposition was approved by voters in the November 6 general election, with 61.1% voting in favor of it.[2][3][4][5][6]
Supporters of Proposition 39 claimed that it will close a tax loophole that currently rewards out-of-state companies for taking jobs out of California and, for tax purposes, treats out-of-state companies the way California-based companies are treated. The savings generated by closing the loophole will be directed to fund public schools and create jobs in the state, especially construction jobs in the clean energy sector.[6][7][8][9][10] Opponents argued that Proposition 39 is simply a tax increase, and it will make out-of-state companies less likely to do business in California.[7][11] The proposition does not affect California-based companies or California residents.[6][7][12][13][14][15]
The nonpartisan California Legislative Analyst's Office has determined that changing the way out-of-state corporations are taxed in California will generate approximately $1 billion in revenue and create 40,000 jobs.[6][16]
The primary financial backer of Proposition 39 was Thomas Steyer, who also played a lead role in designing the initiative.[17] California State Senator Kevin de León served as the co-chairman of the Prop 39 campaign.[18]
California State Controller John Chiang appointed three members to a board created to oversee the Allocation of new funds related to the California Clean Energy Jobs Act.[19] The three board members include: Gary Kremen, the founder of Match.Com also a clean technology engineer, entrepreneur and inventor; Erik Emblem, executive administrator and chief operating officer of the Western States Council-Sheet Metal Workers in Sacramento; and Dana Cuff, professor of Architecture and Urban Planning at the University of California, Los Angeles.
- ^ "Statement of Vote" (PDF). California Secretary of State. Archived from the original (PDF) on 24 December 2012. Retrieved 3 June 2013.
- ^ "Statement of Vote November 6, 2012, General Election" (PDF). California Secretary of State. Archived from the original (PDF) on 24 December 2012. Retrieved 3 June 2013.
- ^ Joe Mathews (June 30, 2012). "The Three Numbers You'll Hear This Fall: 38 - 39 - 40". NBC Bay Area. Retrieved September 25, 2012.
- ^ Nannette Miranda (September 12, 2012). "Prop 39 aims to cement California as green leader". ABC 7. Archived from the original on March 3, 2013. Retrieved September 25, 2012.
- ^ "Assembly speaker backs Proposition 39's corporate-tax revamp". Los Angeles Times. September 12, 2012. Retrieved September 25, 2012.
- ^ a b c d "Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Initiative Statue". Legislative Analyst's Office. July 18, 2012. Retrieved September 25, 2012.
- ^ a b c "Argument in Favor of Proposition 30" (PDF). CA.gov. 2012. Retrieved September 25, 2012.
- ^ James Nash (September 17, 2012). "California Voters Weigh $1 Billion Tax Break for Business". BusinessWeek. Archived from the original on September 20, 2012. Retrieved September 25, 2012.
- ^ Steven Maviglio (September 24, 2012). "Sacramento Bee Backs Prop 39". The California Majority Report. Archived from the original on 2013-02-11. Retrieved September 25, 2012.
- ^ Editorial Board (September 23, 2012). "Endorsements: Proposition 39 is a tax code fix worthy of your 'yes' vote". The Sacramento Bee. Archived from the original on 2012-09-26. Retrieved September 25, 2012.
- ^ Katy Grimes (August 20, 2012). "Prop 39 and AB 1500: A taxing alliance". CalWatchdog. Retrieved September 25, 2012.
- ^ "Proposition 39". SmartVoter.org. 2012. Retrieved September 25, 2012.
- ^ "Proposition 39 – Why You Should Vote Yes on the Most Boring Proposition on the 2012 Ballot". San Diego Free Press. September 6, 2012. Retrieved September 25, 2012.
- ^ "Mercury News editorial: California's Prop. 39 will help keep businesses here". Silicon Valley Mercury News. August 9, 2012. Retrieved September 25, 2012.
- ^ "KCET Presents Election 2012". KCET.org. 2012. Archived from the original on 2012-10-11. Retrieved September 25, 2012.
- ^ "Reconsidering the Optional Single Sales Factor". Legislative Analyst's Office. Retrieved September 25, 2012.
- ^ "Yes on Proposition 39". Los Angeles Times. September 27, 2012. Retrieved September 27, 2012.
- ^ "Senator Kevin de Leon Challenges CEOs of General Motors, Kimberly-Clark and International Paper to Public Debate on Proposition 39". MarketWatch. Sep 25, 2012. Archived from the original on November 2, 2012. Retrieved September 25, 2012.
- ^ John, Chiang. "Controller's Appointees to Prop. 39 Citizens Oversight Board". Archived from the original on 2014-02-04. Retrieved 2014-03-19.