Proposition 39 would eliminate the ability of companies to choose between two methods to calculate their taxable income in California and require them to use sales only for the calculation. Estimated revenue, per the California Legislative Analyst’s Office, would be more than $1 billion annually with $500 – $550 million being earmarked for clean energy and energy efficiency projects for five years.
The proposition would also increase education funding in the state due to higher total tax revenues and the corresponding increase in the amount of education spending required by Proposition 98. The increase in school funding is estimated between $200 and $500 million for five years and from $500 million to over $1 billion from 2018-19 into the future.
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