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Desert Sun: “Gov. Jerry Brown’s move against state enterprise zones illegal, tax group says”

The Desert Sun has a pair of interesting items today. First is an Op-Ed by Indio,CA Mayor Lupe Ramos-Watson in which she says:

From a policy standpoint, the elimination of redevelopment agencies and enterprise zones makes no sense, as they boost our economy and are essential economic recovery tools for the state.

There is no doubt that the state’s budget situation is dire, and it is well past time that the state faces the consequences of years of gimmicks and temporary budget fixes. However, eliminating programs that create jobs and fuel economic growth is reckless and unwise.

Second, is an article examining the illegality of the Governor’s proposal to eliminate the Enterprise Zones, particularly the provision to retroactively cancel earned carry forward tax credits:

Gov. Jerry Brown’s proposal to eliminate the Enterprise Zone Tax Credit program is bait-and-switch taxation and is illegal under constitutions of the United States and California, attorneys from a nationwide state tax group said Tuesday.

Attorneys from Reed Smith LLP, a firm that’s handled California enterprise zone litigation in the past and was retained by Communities to Save Enterprise Zones to do a study, said the legislation created in 1984 was set up to stimulate growth and job creation in economically depressed areas.

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