Gut-and-amend bill links repeal of fire fee with corporate tax hike
The new proposal, Senate Bill 1040, would link a GOP push to repeal the fire prevention fee repeal with a key priority of Assembly Speaker John Pérez and most Democrats, Assembly Bill 1500, to impose a corporate tax formula known as the “single sales factor.” The proposed compromise also could pressure Senate Republicans to provide the necessary votes, at least two, to ensure that Pérez’s tax formula bill clears the upper house by the needed supermajority… Altering the corporate tax formula should generate an estimated $1 billion for the state each year. About $90 million would be used to backfill revenue lost by repealing the fire fee. The remainder would fund college scholarships for families earning less than $150,000 per year.
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by Jim Sanders, The Sacramento Bee.