This year’s CalChamber ‘job killer’ list includes 37 proposals that would make it even more difficult for California companies to remain viable in this difficult economy,” said Allan Zaremberg, President and CEO of the California Chamber of Commerce. “Our businesses need to have certainty that they can be competitive before they will begin to reinvest in our economy. Not only do these bills send the wrong signal and create an uncertain environment for investment but, if passed, they would create new costs that would harm our ability to recover and add new jobs.”

“The only way out of these economic hard times is a rebound of the private sector. Our policy makers must focus on job creation, reducing regulatory burdens and holding the line on new costs. If enacted, these ‘job killer’ bills would make it even more difficult for us to solve the huge, gaping budget hole that Governor Schwarzenegger announced on Friday.

Here’s a link to the cal chamber job killers bill. Click Here.

COSTLY WORKPLACE MANDATES

AB 482 (Mendoza; D-Norwalk) Expanded Employer Liability — Increases potential liability exposure for hiring decisions by unduly restricting the ability of businesses to use consumer credit reports as part of the background check process.

AB 1994 (Skinner; D-Berkeley) Increased Workers’ Compensation Costs — Inappropriately increases costs to employers by expanding workers’ compensation presumptions into the private sector for the first time by allowing hospital workers to be eligible for various presumptions, including H1N1, MRSA, and other diseases and injuries.

AB 2187 (Arambula; I-Fresno) Expanded Employer Liability — Creates a significant disincentive to locate jobs and operations in California by potentially criminalizing almost any legitimate wage dispute with a terminated employee that takes longer than 90 days to resolve.

AB 2727 (Bradford; D-Gardena) New Liability for Hiring Decisions — Increases potential liability exposure for hiring decisions by restricting the ability of employers to make their decision based on a job applicant’s criminal conviction.

SB 810 (Leno; D-San Francisco) Government-Run Health Care — Creates a new government-run, multibillion-dollar socialized health care system based on a yet-to-be specified ‘premium structure’ — in essence, a tax on all employers.

SB 1121 (Florez; D-Shafter) Harms California Farms and Farm Workers — Places farms at a competitive disadvantage, increases cost of doing business for California farmers, and reduces available resources to invest in workers and farms by removing overtime exemption for agricultural employees.

SB 1474 (Steinberg; D-Sacramento) Increased Agricultural Costs — Undermines the process that now guarantees through secret-ballot elections, a fair vote and the expression of agricultural employees’ true sentiments on the selection of a collective bargaining representative. This act will hurt California’s businesses by driving up costs, making employers less competitive in a global market.

ECONOMIC DEVELOPMENT BARRIERS

AB 656 (Torrico; D-Fremont)/AB 1604 (Nava; D-Santa Barbara)/ABX6 1 (Nava; D-Santa Barbara) Gas Price Increase — Increases gas prices and dependence on foreign oil by targeting the oil industry for a tax on only oil extracted in California, in addition to other taxes not levied in other states.

AB 846 (Torrico; D-Fremont) Anti-Business Cost Increases — Significantly increases the cost of doing business in California by placing an automatic increase on fines and penalties without legislative review and encourages state agencies to levy the highest fine and penalty allowed.

AB 1405 (De León; D-Los Angeles) Climate Change Tax Increase — Increases costs and discourages job growth by granting the Air Resources Board broad authority to implement unlimited fees and taxes with little or no oversight.

AB 1639 (Nava; D-Santa Barbara) Delays Residential Construction Industry Recovery — Hinders the recovery in the residential construction industry by reducing the availability of credit due to delays in resolving delinquent loans by imposing a mandatory mediation program on delinquent residential mortgages.

AB 1836 (Furutani; D-South Los Angeles County) Increased Tax Burden — Harms small businesses, many of whom pay taxes under the personal income tax system, by imposing another temporary personal income tax increase on top of the existing personal income tax increase that was passed in last year’s budget.

AB 1935 (De León; D-Los Angeles)/ SBX6 18 (Steinberg; D-Sacramento) Discourages Business Growth in California — Raises taxes for many companies with significant investments of property and payroll in California by making the single sales factor apportionment method mandatory.

AB 1936 (De León; D-Los Angeles) Creates Inequity in the Tax Structure — Harms struggling small businesses and start-ups by repealing the Net Operating Loss (NOL) carry back deduction, a lifeline that helps employers stay afloat, retain employees, and continue investing in their businesses in an economic downturn.

AB 2100 (Coto; D-San Jose)/ SB 1210 (Florez; D-Shafter) Targeted Tax Increase/Flawed Budget Philosophy — Threatens jobs in beverage, retail and restaurant industries by arbitrarily and unfairly targeting certain beverages for a new tax in order to fund obesity-prevention programs and services.

AB 2171 (C. Calderon; D-Montebello) Discourages Investments — Creates substantial uncertainty for employers and discourages future investment in the state by effectively creating an annual sunset for all investment incentives, including tax credits, deductions and exemptions, and caps how much can be claimed each year.

AB 2492 (Ammiano; D-San Francisco) Higher Employer Property Taxes — Undermines Proposition 13 protections and could result in higher property taxes for small businesses by creating an arbitrary and unfair standard for determining that a business property has changed ownership and needs to be reassessed.

AB 2641 (Arambula; I-Fresno) Discourages Investments — Creates uncertainty for California employers making long-term investment decisions by requiring all future-enacted investment incentives to sunset after five years, and eliminating existing incentives that provide no “measurable benefit” without defining how that benefit would be measured.

ACA 6 (C. Calderon; D-Montebello) Discourages Investments — Discourages investments in jobs and operations by imposing an automatic sunset of seven years on any new or extended tax credit, exemption or deduction.

ACA 22 (Torlakson; D-Contra Costa) Targeted Tax Increase/Flawed Budget Philosophy — Exacerbates state budget problems and harms tobacco industry by unfairly targeting it for a new cigarette tax, a declining revenue source, to fund new government spending programs.

SB 967 (Correa; D-Santa Ana) Restricts Business Options — Limits choice and drives up prices for consumers and for state and local government by providing a preference to bidders who commit that 90 percent of the work will be performed by California employees.

SB 974 (Steinberg; D-Sacramento) Undermines Economic Development — Threatens California’s economy and economic recovery by effectively gutting the California Enterprise Zone (EZ) program hiring tax credit and in turn increasing employer taxes in order to fund a new education tax credit.

SB 1113 (Wolk; D-Davis) Undermines Taxpayer Rights — Makes it more costly and difficult for taxpayers to fight meritorious disputes and gives the Franchise Tax Board (FTB) the upper hand by allowing FTB to request a new court trial of tax cases it loses at the administrative level.

SB 1272 (Wolk; D-Davis) Discourages Investment — Creates uncertainty for California employers making long-term investment decisions by requiring all future-enacted investment incentives to sunset after seven years.

SB 1275 (Leno; D-San Francisco) Delays Residential Construction Industry Recovery — Hinders the recovery in the residential construction industry by reducing the availability of credit due to delays in resolving delinquent loans by requiring lenders to determine a borrower’s eligibility for a loan modification prior to the filing of a notice of default.

SB 1316 (Romero; D-East Los Angeles) Employer Tax Increase — Places California out of step with federal law and creates a disincentive for multi-state companies to invest in California by making it the only state to impose a tax liability when a company needs flexibility to exchange a California property with one owned in another state.

SB 1391 (Yee; D-San Francisco) Creates Employer Tax Credit Uncertainty — Eliminates the incentive effect of future-enacted tax credits by requiring employers to repay the state for credits claimed in years where their businesses experience a net loss of employees, whether or not the reduction of employees was connected to the effectiveness of the credit.

EXPENSIVE, UNNECESSARY REGULATORY BURDENS

AB 479/AB 737 (Chesbro; D-North Coast) Expanded Waste Bureaucracy — Exposes employers to new requirements that are not cost effective or are unworkable by giving government broad new authority to impose programs that achieve a statewide solid waste diversion rate of 75 percent by 2020.

AB 2138 (Chesbro; D-North Coast) Unworkable Mandate — Imposes new and costly mandates on California’s food service industry by imposing an unworkable framework aimed at reducing marine debris.

AB 2578 (Jones; D-Sacramento) Inappropriate Price Control — Reduces health care choices, access and quality by creating additional bureaucracy to impose price controls on health insurance policies while failing to address the major cost drivers of rising medical costs.

INFLATED LIABILITY COSTS

AB 1680 (Saldaña; D-San Diego) Interferes with Contractual Agreements — Burdens businesses with unnecessary litigation costs and slows resolution of disputes by prohibiting enforcement of voluntary arbitration agreements if someone is being sued for a hate crime.

AB 2773 (Swanson; D-Alameda) Undermines Judicial Discretion — Unreasonably increases business litigation costs by removing judicial discretion to reduce or eliminate exorbitant legal fees in fair employment and housing cases.

A new report from a conservative think tank says California’s high taxes and spending practices hinder economic growth.

Titled “Taxifornia,” the study by Robert P. Murphy and Jason Clemens found that state and local government spending in California is the nation’s fourth-highest at 18.4 percent of its economic input. Alaska is highest at 20 percent and South Dakota lowest at 11.6 percent.

The data represent a new wrinkle in California’s perpetual debate over spending and taxes, since comparisons usually focus on tax burdens. The authors said they looked at total spending so that it include spending out of fees and borrowed money, as well as tax receipts.

However, the report doesn’t ignore taxes, placing California among the nation’s highest-taxing states, especially personal and corporate income and sales taxes, and suggests that they are inhibiting California’s economic progress. A liberal counterpart organization, the California Budget Project, has labeled California a moderate tax state.

The PRI report was especially critical of California’s high marginal income tax rate and its reliance on high-income taxpayers. “If policy makers want to understand why the Golden State is lagging behind other states economically,” the report said, “the punitive and steeply progressive personal income tax code is a good place to start looking.”

The full report can be found here.

Sacramento — The statewide median income for all personal income tax returns rose slightly to $35,923 (0.78 percent over 2007), while the median income listed on joint returns grew to $68,981 (0.27 percent over 2007) according to statistics released today by the Franchise Tax Board (FTB).

The four Bay Area counties of Contra Costa, Marin, San Mateo, and Santa Clara counties have led California for 37 years in reported highest median incomes.

“Median income” is the point where one-half of the tax returns are above and one-half are below the midpoint of the range of values. Median income represents the amount reported by a typical California individual or couple.

California taxpayers filed 15.53 million 2008 state income tax returns reporting $1.113 trillion, a 7.2 percent decrease over 2007 figures. Adjusted gross income is a figure taken from tax returns that reports total income after specific tax deductions are subtracted.

Marin County had the highest median income for joint returns at $118,704, a decrease of 3.85 percent over 2007.San Mateo County ranked second with $100,165,Santa Clara County ranked third with $100,077, Contra Costa County ranked fourth with $90,956, and Alameda County ranked fifth with $88,138.

Los Angeles County taxpayers filed 25.5 percent of all 2008 income tax returns in California. They reported median incomes of $31,679 for all returns, and $59,950 for joint returns, ranking 36th and 28th, respectively for all counties. The largest percentage gain in median income for all counties was 5.36 percent, reported in Colusa County. The largest increase in joint filings was also in Colusa County with a 4.55 percent increase.

This past week the city of Fresno voted to keep their enterprise zone program in place.  If you operate a business in Fresno, please feel free to contact us for a free tax credit consultation.

Click here to view the Fresno EZ Program resolution.

Assembly Bills

• AB 1836 (Furutani) PIT Rates/Increase Maximum Rates To 10 Percent & 11 Percent & AMT To 8.5 Percent Beginning On Or After January 1, 2011, & Before January 1, 2016 – Amended 04/05/10
• AB 1990 (Anderson) Unemployed Worker’s Child Care Costs Contributions Credit – Amended 04/05/10
• AB 2041 (Villines/Smyth) Health Savings Account Deduction Conformity – Introduced 02/17/10 & Amended 03/10/10
• AB 2177 (Beall) Allow Electronic Communication To Taxpayers To Inform Of Tax Change Or Obligation – Amended 04/14/10
• AB 2492 (Ammiano) Property Taxes/Change In Ownership – Amended 04/08/10
• AB 2591 (Feuer/Perez) State Budget/Nonrecurring Revenue/FTB & BOE identify Each Source Of General Fund Proceeds Of Taxes Higher Than Tax Proceeds Received In Preceding Fiscal Year & Report To Legislature, Governor, Controller & Public By May 15 Each Year – Amended 03/17/10
• AB 2630 (Emmerson, Cook, et al.) Employer Hiring Credit – Introduced 02/19/10
• AB 2640 (Arambula) Section 1245 Property Credit For Manufacturer’s Investment In Qualified Property/Eliminate Income Exclusion Of Free Or Subsidized Parking For Participating In A California Ridesharing Arrangement – Amended 04/08/10
• AB 2641 (Arambula/Solorio) Tax Expenditures/Legislative Review Of Each Tax Expenditure/Add 5 Year Sunset – Amended 04/27/10
• AB 2656 (De Leon) Postsecondary Education/Contracts For Academic Research – Amended 04/08/10
• AB 2665 (Strickland) Service Station Emergency Standby Generator Credit – Amended 04/26/10

Senate Bills

• SB 913 (Calderon) Principal Residence Credit – Introduced 01/28/10
• SB 952 (Wyland) Repeal PIT Temporary Rate Increases/Repeal Decreased Personal Exemption Credit for Dependents/Withholding Tables/Eliminate 10 Percent Increase – Introduced 02/04/10
• SB 952 (Wyland) Repeal PIT Temporary Rate Increases/Repeal Decreased Personal Exemption Credit for Dependents – Amended 04/05/10
• SB 1073 (Ashburn) Research Expense Credit/20 Percent Of Qualified Green Technology & Renewable Energy Research And Development Costs – Introduced 02/17/10
• SB 1185 (Maldonado) Adopted Animal Food And Supply Costs Deduction – Introduced 02/18/10
• SB 1216 (Cedillo) Low-Income Housing Credit/Allocation Of Surplus Credits By The California Tax Credit Allocation Committee – Amended 04/05/10
• SB 1244 (Walters) Limited Liability Company Employment Taxes – Amended 04/21/10
• SB 1272 (Wolk) Tax Expenditures/Add 7 Year Sunset – Amended 04/21/10
• SB 1391 (Yee) Employer Tax Credit/Reporting Information/New Credits Chaptered After January 1, 2011, Would Be Recaptured If Taxpayer Has Net Decrease In Full-Time Employees – Amended 04/06/10
• SB 1430 (Walters) Renter Credit & Homeowners’ Property Tax Exemption/Increase Credit & Exemption Amounts For Taxpayers 62 Or Older – Introduced 02/19/10 & Amended 03/24/10

Senate Special Session Bills

• SBX6_14 (Calderon/Correa) Mortgage Forgiveness Debt Relief Extension – Introduced 03/11/10
• SBX8_58 (Dutton/Runner) Research Expense Credit/20 Percent Of Excess Qualified Expenses/Conformity To Election Of Alternative Incremental Credit – Introduced 02/12/10

Sacramento – The Franchise Tax Board (FTB) today received five certifications from the US Green Building Council for energy-efficient, environmentally-friendly buildings. The FTB campus is comprised of five buildings consisting of nearly 2 million square feet and houses more than 5,000 state employees. Awards came for each of the five buildings, which met the Leadership in Energy and Environmental Design (LEED) standards developed by the US Green Building Council.

Four of buildings attained the “Gold” status and one attained “Silver.” The green building standards annually saves the State $35,000 in operating costs. LEED standards for energy and resource efficiency include:

· Highly energy-efficient lighting fixtures, mechanical equipment, insulation, screens and sunshades, and double-pane window glazing reduce heating and cooling needs. Automatic lighting control system that adjusts interior light based on the amount of natural daylight. “Cool” white roofing that reflects heat from the sun to keep down inside temperatures and cooling costs.
· Low-flow plumbing and automatic flow sinks in restrooms. Exterior irrigation fixtures and drought tolerant landscaping.
· “Bio-swales” in parking lots that slow the rate of storm water runoff to sewer systems and reduce erosion. Bio-swales use vegetation to filter pollutants before runoff reaches streams and rivers.
· Tree-shaded parking lots.
· Resource-efficient construction practices that divert waste from landfills.
· Proximity to public transit.
· FTB previously won three silver LEED awards for new construction for the FTB campus expansion project completed in 2005. The new buildings were designed to exceed California energy efficiency standards by more than 20 percent.

Access California’s Green Building Directory at http://www.greenbuildings.dgs.ca.gov

FTB Conforms to IRC Section 409A

On January 19, 2010, the Internal Revenue Service (IRS) released Notice 2010-6. It allows taxpayers to correct certain operational failures of nonqualified deferred compensation plans in order to comply with IRC Section 409A. / more+

FTB at a Glance Revised and Online

Need a quick overview of our programs, resources, and processing statistics? / more+

Tax Delinquency Letters Mailed

We mailed the Notice of Public Disclosure of Tax Delinquency letters on February 19, 2010. / more+

Fraudulent W-2s

Every year, tax professionals are faced with what to do when presented with documents they think may not be legitimate, of particular concern, fraudulent W-2s. / more+

California Winter Storm Victims Get State Tax Relief

On March 1, 2010, the President declared several counties a major disaster. / more+

California Combined Reports Missing Information

It has come to our attention that numerous combined reports are being filed with missing or incomplete information. / more+

Haiti Donations Are Immediately Tax-Deductible

We announced that a new state law allows taxpayers to immediately deduct their donations made to provide relief for the January 12 Haitian earthquake victims. / more+

Unclaimed Earned Income Tax Credit

Do your clients know someone who qualifies for the Earned Income Tax Credit (EITC)?  / more+

Paying Electronically Saves Time

We all know that going paperless saves time, hassle, and trees. Paying electronically means your client doesn’t have to spend time writing and mailing a check. It also ensures that their payment is quickly applied to their account. We encourage them to use one of the many options we offer for electronic payments. But which is right for them? / more+

IRS Nationwide Tax Forums Registration Available!

Join tax professionals from across the country for three days of the latest tax law information, hands-on workshops, networking opportunities, and exhibits of the latest tax products and financial services to improve your business. / more+

Information for Charities and Nonprofits, Exempt Organizations

We recently updated our Charities and Nonprofits (Exempt Organizations) webpage. / more+

Statute of Limitations on Collection Actions

For many years, no statute of limitations existed on the collection of an income or franchise tax delinquency. Beginning in 2006, a statute of limitations on our collection actions went into effect. / more+

Small Business

Dissolving an Entity

Does your client plan to dissolve, surrender, or cancel business operations in California? / more+

Ask the Advocate

Provisional Assessments

We have received questions regarding our practice of issuing provisional assessments. This article is a brief explanation of the process and the authority to make such adjustments. / more+

Inside FTB

Take a look at the changes happening here at FTB. / more+

Criminal Corner

Our monthly summary on bringing tax criminals to justice, and closing the tax gap one case at a time. / more+

Systemic Issue Update

Sharing our efforts, progress, and changes we have made from your comments and suggestions submitted through the Systemic Issue Management System. / more+

Big Business

S Corporations – New Withholding Rule for the 2009 Form 100S

Beginning tax year 2009, S corporations may claim withhold at source on their S corporation return, but not in excess of their tax liability. / more+

With soaring unemployment and increased competition from other states around the nation, California needs to make some drastic changes to how it deals with local businesses. Greg O’Sullivan from Redding.com, has proposed three ‘radical’ changes that he believes that California needs to make in order to attract new corporate and job growth:

1. Temporarily lower corporate income tax rates by 50 percent.

Thirty-four states have lower corporate tax rates compared to California. For example, we could lower the rate by half to companies that are willing to invest in new facilities and equipment in California over the next five years. The result would be a staggering increase in personal income taxes, sales and local property taxes. It’s a little like the “Big Box Theory” of merchandising, where profits are derived from volume. The new jobs, investment and increased economic activity are certain to far exceed the unrealized corporate taxes from collecting the full 8.8 percent from our existing employers that are fleeing the state or closing due to out-of-state competition.

2. Exempt manufacturing facilities from prevailing wage rates.

What if just one of our California gubernatorial candidates stood up and said we will suspend the prevailing wage rule to any manufacturing company that invests in new facilities and receives a public investment, inducement or incentive? The way it works presently is that if the city of Redding offers free land at Stillwater Business Park to a manufacturer to build a facility, prevailing wage rates are triggered, increasing labor costs by an estimated 20 percent. Nevermind that the actual manufacturing facility is built with private sector capital and that the Stillwater infrastructure was already subject to prevailing wages. Don’t get me wrong, when it comes to a genuine “public works” project where the majority of the project is tied directly to public funding, the prevailing wage rule should apply. Case in point: stimulus-funded projects.

3. Recognize the value of California enterprise zones.

Forty-two California enterprise zones are located throughout the state. Communities like Shasta County received these designations from the state through a competitive process. While zones have similar goals for improving the economic vitality of their communities, each is unique in the local incentives and special assistance it provides to the businesses located within the zone boundaries. Each year, the Legislature holds hearings on whether to continue the enterprise zone program. Most of us who compete for job-creation projects with other states know that the EZ program is the only real incentive offered by California. I agree that California can ill afford to waste money on programs that do not work. However, the state’s enterprise zone program has proven to deliver measurable benefits. Last year participating local companies hired more than 1,600 employees to receive an estimated $19 million in hiring tax credits. These same companies plow the tax savings back in their businesses in the form of new equipment, facilities and, of course, jobs. Reducing or eliminating the enterprise zone program would be extremely shortsighted. Even discussing it at a state level sends the message of uncertainty to existing or new companies considering California for future business investment.

Assembly Bills

• AB 183 (Caballero) Principal Residence Credit (Stats. 2010, Ch. 10-12)- Legislative Change 10-04
• AB 347 (Bass) Charitable Contribution Deduction Haiti Earthquake (Stats. 2010, Ch. 10-08) – Legislative Change 10-03
• AB 658 (Hayashi,et al.) Voluntary Contribution Fund Designation/California Police Activities League Fund – Introduced 03/04/10
• AB 1700 (Gaines) Personal Exemption Credit For Dependents/Repeal Decrease In Credit January 1, 2010/Pit Rates/Repeal Temporary Increase January 1, 2010 – Introduced 02/01/10 & Amended 03/23/10
• AB 1936 (De Leon) Remove Net Operating Loss Carryback Provisions – Introduced 02/17/10
• AB 1973 (Swanson) Employer Hiring Credit/Ex-Offender – Introduced 02/17/10
• AB 1973 (Swanson) Employer Hiring Credit/Ex-Offender/Reentry Employment Business Tax Credit Act – Amended 04/05/10
• AB 2017 (Hall) California YMCA Youth and Government Fund – Introduced 02/17/10
• AB 2078 (Calderon) Use Tax/Retailers Engaged In Business In This State – Amended 04/05/10
• AB 2100 (Coto) Sweetened Beverage Tax Law – Introduced 02/18/10 & Amended 03/25/10
• AB 2126 (Garrick) Minimum Franchise Tax/Corporations That First Commence Business On Or After January 1, 2009, Exempt First Taxable Year And $100 Succeeding 9 Taxable Years – Introduced 02/18/10
• AB 2126 (Garrick, et al.) Minimum Franchise Tax/Corporations That First Commence Business On Or After January 1, 2009, Exempt First Taxable Year And $100 Succeeding 9 Taxable Years – Amended 04/05/10
• AB 2148 (Tran) Deduction For Physician’s Medical Services Contributed Free Of Charge To Local Community Clinic – Introduced 02/18/10
• AB 2458 (Saldana) Corporation Penalties – Introduced 02/19/10
• AB 2528 (Knight) Exclusion/Payments Or Vouchers From Federal Consumer Assistance To Recycle & Save Act Of 2009 (aka “Cash For Clunkers”) – Introduced 02/19/10
• AB 2564 (Swanson) State Budget/Tax Expenditures – Introduced 02/19/10 & Amended 03/25/10
• AB 2665 (Strickland) Service Station Emergency Standby Generator Credit – Introduced 02/19/10
• AB 2671 (Cook) Minimum Franchise Tax/Exempt Corporations Owned Solely By Deployed Member Of U.S. Armed Forces That Operate At A Loss Or Ceases Operation – Introduced 02/19/10
• AB 2676 (Ma) FTB Revise Income Tax Forms And Instructions To Continue To Enable A Person To Report & Pay Qualified Use Tax – Amended 04/06/10

Senate Bills

• SB 936 (Strickland) Income Exclusion for Energy Property Grants – Amended 03/08/10
• SB 1020 (Wolk, DeSaulnier, et al.) State Budget/Performance-Based Budget – Introduced 02/11/10
• SB 1036 (Cedillo/Huffman) FTB Disclosure Of Tax Return Information To Cities/Expands To Allow Disclosure By City Officials To Other Persons Designated By City Resolution – Introduced 02/12/10
• SB 1244 (Walters) LLC Employment Taxes and Contribution – Introduced 02/19/10 & Amended 04/05/10

Senate Special Session Bills

• SBX8 25 (Calderon/Correa) Mortgage Forgiveness Debt Relief Extension – Introduced 02/04/10

Greetings! One of the top issues for our country and our community is the economy. Here in Santa Clarita, our business community, Chamber of Commerce, and City work in tandem to help businesses through these tough economic times as well as to help position our business community for the future. The City of Santa Clarita has a three-part economic strategy focused on fostering and encouraging responsible economic development opportunities that result in a jobs/housing balance, established through quality employment opportunities for residents; an economic base through increased sales tax generation, and economic wealth by attracting external monies to the local economy. I wanted to share with you the top 10 work programs our City is doing right now that will best position our business community for the future:

1. Jobs/Housing Balance – The foundation of the City economic development strategy is jobs. Our residents need secure employment to be able to pay their bills, and provide a high quality of life for their families. When residents are secure in employment, they are confident retail and restaurant consumers. The City adds jobs to our community through business attraction where we have seen successful in relocating companies this year such as Ronan Engineering and Quest Diagnostics, and through business retention and expansion where we have seen successful with Advanced Bionics and Aerospace Dynamics International.
2. Creating an economic base through increased sales tax generation. The City works with retail centers to attract the restaurants and stores that our residents want so that we can stop retail spending leakage and support shopping locally. Locally generated sales tax provides a direct barometer of the health of the local economy. By increasing these dollars, the City is continually able to invest in the community.
3. Creating economic wealth through industries like tourism and film. These monies make our community richer, bringing new dollars in, as opposed to re-circulating the same dollars. Location filming generates more than $20 million annually in direct spending to local businesses.
4. The City funds a $1.5 million dollar Economic Development Division with 14 staff designed to attract, retain, and support the City’s targeted business industries, including: Film, Tourism, Aerospace, Biomedical, and Technology, as well as emerging businesses and industry sectors.
5. The City of Santa Clarita’s 21-Point Business Plan for Progress includes a budget of more than $18 million in City and federally-secured stimulus funds, which are being invested in all facets of Santa Clarita, creating immediate jobs while providing long-term benefits to our community.
6. After being named the Most Business Friendly City in LA, Santa Clarita implemented more changes to make it easier to do business in Santa Clarita. This included streamlining the permit process for businesses, creation of a new Permit Center, the introduction of e-plans for electronic plan submission, and deferring of some permit-related fees to encourage business growth.
7. The Santa Clarita Enterprise Zone. The City applied for and secured this program in 2007, recognizing the significant economic benefits it would mean to the business community. To date, Santa Clarita businesses have realized a potential savings of more than $40 million dollars, which they can re-invest in their business.
8. The City continues to focus its efforts on sports tourism and successfully attracted the 2009 Western States Police & Fire Games, which organizers estimate brought more than $8 million to the local economy. The City continues to solicit these types of events, which results in a positive economic impact to local businesses and increased sales tax generation.
9. The City’s Film Incentive Program, part of the 21-Point Business Plan for Progress, has further cemented our reputation as the Most Film Friendly community in the 30-mile zone. Santa Clarita experienced a 40 percent increase in location film days from television production from July through December 2009 when compared to the same time period in 2008. This represents an increase in economic impact to the local economy of $2.6 million.
10. Branding Santa Clarita. The City continually promotes Santa Clarita as the business destination in Southern California through advertising campaigns with radio, print, airport, and cable television in the greater LA market, as well as targeted advertising in film, BioMedical, and business trade magazines and conferences.