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Assemblyman Calderon Proposes Suspension of Enterprise Zone

Assembly Member Charles Calderon has introduced ABX3 35:

This bill would suspend the operation of those tax incentives for taxable years beginning on or after January 1, 2009.

This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on January 10, 2008, pursuant to the California Constitution.

This bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.

Given the extent of the budget deficit and the potential revenue savings from Enterprise Zone credits, it’s difficult to see how such a measure could be effective. It is also difficult to imagine such a suspension receiving 2/3 support of the legislature. I’m interested to find out what Assemblyman Calderon’s motivation is.

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