California General Election

Requires multistate businesses to pay income taxes based on percentage of their sales in California. Dedicates revenues for five years to clean/efficient energy projects. Fiscal Impact: Increased state revenues of $1 billion annually, with half of the revenues over the next five years spent on energy efficiency projects. Of the remaining revenues, a significant portion likely would be spent on schools.

WHAT YOUR VOTE MEANS

YES A YES vote on this measure means: Multistate businesses would no longer be able to choose the method for determining their state taxable income that is most advantageous for them. Some multistate businesses would have to pay more corporate income taxes due to this change. About half of this increased tax revenue over the next five years would be used to support energy efficiency and alternative energy projects.

NO A NO vote on this measure means: Most multistate businesses would continue to be able to choose one of two methods to determine their California taxable income.

ARGUMENTS

PRO Yes on 39 CLOSES UNFAIR TAX LOOPHOLE letting OUT-OF-STATE CORPORATIONS avoid taxes by keeping jobs out of California. Closing the loophole protects local jobs and provides $1 BILLION to California. Funds used for job-creating energy efficiency projects at schools and for deficit reduction. YES on 39—CLOSE THE LOOPHOLE.

CON Proposition 39 is a massive $1 billion tax increase on California job creators that employ tens of thousands of middle class workers. It’s a recipe for waste and corruption, giving Sacramento politicians a blank check to spend billions without real accountability. California is billions in debt; 39 makes it worse.

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