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AB 103 and SB 79: Budget Trailer Bills That Would Eliminate Enterprise Zones

The Governor’s proposal to eliminate Enterprise Zones which has already passed through the Budget Committees of both houses and the Budget Conference Committee has now been drafted into budget trailer bill language. AB 103 and SB 79 (which appear to be identical) not only eliminate the Enterprise Zone, LAMBRA and Targeted Tax Area programs, they also implement the Governor’s proposal to impose a mandatory single-sales factor. These bills are considered tax increases and therefore require two-thirds of the legislature to pass. The combination of the Enterprise Zone issue with the single-sales factor issue is not arbitrary – it is designed to make it even more difficult for democrats to vote against the bills.

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