2012 Elections: News, Analysis, Videos, and Breaking on the Presidential Election, Local Elections, and More

2012 Elections: News, Analysis, Videos, and Breaking on the Presidential Election, Local Elections, and More

Complete coverage of the 2012 election

Out-of-State Tax Rule Measure Prop. 39 Results Come In

Measure would limit the tax options for multi-state businesses

By Gene Cubbison and Lauren Steussy
|  Friday, Jan 4, 2013  |  Updated 10:20 AM PDT
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Results for the measure that will limit the tax choices available to out-of-state businesses are beginning to show 63 percent in favor and 37 percent opposed with just five percentage of precincts reporting.

Click here for live results

Proposition 39, a ballot measure that would require multi-state businesses to base their income tax liability on the percentage of their sales in California, according to the official ballot summary.

Busineses that operate in California currently have two choices in how they pay taxes: One method bases a multi-state business’ tax off the amount of sales, property, or employees the firm has in California.

The other method bases the tax off the number of sales conducted in California. If Prop. 39 passes, businesses would be required to use this method. Some of the revenue generated from the taxes will fund clean energy jobs in the state.

Check back here for election results, or browse our Decision 2012 page

The legislature and governor established the two-choice system three years ago. The choice is currently not available to California-based firms.

Prop. 39's backers say it closes a tax loophole that gives multi-state businesses an unfair advantage over California firms.

However, out-of-state manufacturers say California's tax climate is too business-unfriendly already, and the measure will keep them from investing more here.


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