Proposition 39: How We Tax Multistate Businesses

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 (Sandy Huffaker/Getty Images)

Proposition 39 seeks to close a loophole that measure supporters say gives unfair tax breaks to out-of-state companies. Supporters of the measure say taxing out-of-state companies based on their California sales would bring in $1billion annually and help level the playing field for California companies. About half of the tax money, $550 million a year, would go to energy-efficiency programs and green jobs. But critics say the tax increase will discourage job creation. And, they say, allocating money specifically for green programs is another example of ballot-box budgeting that ties the hands of lawmakers.


Kevin de Leon, California state Senator (D-Los Angeles) and co-chair of the Yes on 39 campaign

Jack Stewart, president of theCalifornia Manufacturers and Technology Association