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Senator Steve Glazer announced Friday that he introduced a Bill that would prevent Amazon-Style Tax Subsidies in California.
According to Glazer, this bill would prohibit cities from giving sales tax revenue to private corporations in exchange for locating warehouse distribution centers in their cities.
“We must stop this race to the bottom,” said Glazer.
According to the Bill:
SB 531, as introduced, Glazer. Local government: corporations: economic incentives.
Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose a local sales and use tax in accordance with that law for tangible personal property sold at retail in the county or city, or purchased for storage, use, or other consumption in the county or city. That law requires the county or city to contract with the California Department of Tax and Fee Administration for the administration of the taxes and requires the department to transmit those taxes to the city or county.
This bill would state the Legislature’s intent to enact legislation that would prohibit a local government from agreeing to offer economic incentives in an amount measured by local sales tax revenue to a private corporation in exchange for the corporation locating within the local government’s jurisdiction.
SECTION 1.
It is the intent of the Legislature to enact legislation that would prohibit a local government from agreeing to offer economic incentives in an amount measured by local sales tax revenue to a private corporation in exchange for the corporation locating within the local government’s jurisdiction.
2 comments
I remember when Costco wanted the City of Martinez to give them huge tax incentives for building a store on Arnold Drive, Martinez stood firm and said no. Costco built their store in Concord, but Home Depot took the spot in Martinez and it didn’t cost the City whatever amount Costco wanted. When businesses want incentives and claim it will add jobs to the local economy they are not being exactly honest, the jobs will go to those who are qualified and that doesn’t necessarily mean local people. It’s a bit of a scam I think.
Cool story Mark, but politicians at the highest level get bought out every day by corporate PAC’s for tax breaks and special interest legislation. We don’t have a true democracy in the US, it’s an oligarchy.
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