November 6, 2012 Ballot Prop. 39

Proposition 39: Tax Treatment for Multistate Businesses

Official Results

Available once the California Secretary of State has certified the election. This can take up to 3 weeks or more.

Yes votes: 7,384,416 (61.1%)
No votes: 4,701,562 (38.9%)

Prop. 39 would repeal an existing law that allows multistate businesses to choose a tax liability formula that provides favorable tax treatment for businesses with property and payroll outside California. It would require require multistate businesses to calculate their California income tax liability based on the percentage of their sales in California. Some of the increased revenues would be used to fund projects that create energy efficiency and clean energy jobs.

Pro/Con Statements

Proponents of Prop. 39 say that it will eliminate the out-of-state tax loophole that they believe was created by the Legislature in 2009 in a deal with lobbyists from out-of-state corporations. They say that Prop. 39 will force multistate companies to play by the same rules as California employers. Proponents also say that the measure will create new jobs in California and will bring savings to taxpayers.
Opponents of Prop. 39 say that the measure will target job creators and make the state's unemployment situation worse. They believe the measure will spend money on a new unnecessary bureaucracy which could be spent on schools, health and welfare, environmental protection or public safety. They say that the tax increase in the measure will change existing tax laws and will cost middle class workers their jobs.
Yes on 39 [Website archived in Internet Archive] Stop 39 [Website archived in Internet Archive]