No, it’s not the events in Wisconsin (although that should serve as a wake up call).  Rather it’s the legal memo detailing why repeal of the EZ is illegal.  Essentially, repeal of the EZ violates the Contracts and Due Process clause of the California and U.S. Constitutions.  The memo’s conclusions are that repeal:

• Constitutes “bait and switch” taxation
• Violates the U.S. and state Constitutions
• Would subject the state to refund claims that nullify the proposed budget savings
• Invites legal action to enjoin repeal
• Subjects local governments to taxpayer lawsuits; and
• Endangers California’s bond rating which could be downgraded

The memo is well researched and convincing.  I hope Brown’s camp is enjoying reading it as well.

Tags: CAEZ, california enterprise zone, california tax law, california tax news, corporate savings, Enterprise Zone, Enterprise Zone Program, Enterprise Zone Tax Credits, Enterprise Zones, EZ tax credits, hiring tax credit, hiring tax credits, repeal is illegal, tax professionals

This entry was posted on Friday, February 18th, 2011 at 2:26 pm and is filed under Enterprise Zones, Legislation, Tax News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.