By Laura Perdew
A California Chamber of Commerce-supported job creator bill that ensures California remains a competitive environment for an emerging multibillion-dollar industry was signed by Governor Edmund G. Brown Jr. this week.
AB 777 (Muratsuchi; D-Torrance; Chapter 13) has flown through the Legislature with unanimous support. The bill updates the California tax code to include equipment used for spaceflight transportation within the business inventory exemption.
AB 777 is consistent with the goals of CalChamber’s 2014 Solutions for a Strong California.
California has long been the home of the world’s most advanced aeronautics and aerospace companies. Recently, this industry has seen innovation with the privatization of spaceflight transportation, which had historically been within the exclusive purview of the federal government.
AB 777 codifies a recent Board of Equalization (BOE) legal opinion that recognizes propulsion systems—rockets used for spaceflight transportation—fit within the business inventory exemption in the tax code.
This issue stems from a recent decision by the Los Angeles County Assessor to tax propulsion systems as property that does not fit within the exemption.
In a well-reasoned opinion, the BOE found that these systems should qualify under the business inventory exemption when evaluated in the context of the policy that created the exemption and the heavily …read more
Source: Fullerton Chamber of Commerce