• California’s Proposed Budget Includes Significant Tax Changes
  • January 24, 2011
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • California Governor Jerry Brown released a proposed budget on January 10, 2011, the constitutional deadline required for the governor to present a budget to the Legislature. Faced with a $25 billion deficit, the Governor stated a desire to “restore California to fiscal solvency.” The budget includes several significant changes, including instituting mandatory single sales factor apportionment, repealing the costs-of-performance (COP) sales factor sourcing methodology, repealing the Enterprise Zone Program, and establishing a tax shelter amnesty program and a financial institution record match program. A brief overview of the governor’s proposal suggests restoring fiscal solvency will result in businesses, state employees and recipients of state-funded services bearing the budgetary pain wrought by years of fiscal neglect.