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California Seeks To Tax Rocket Launches, Which Are Already Taxed (arstechnica.com)
The state of California is looking into taxing its thriving rocket industry. The Franchise Tax Board has issued a proposed regulation for public comment that would require companies that launch spacecraft to pay a tax based upon "mileage" traveled by that spacecraft from California. Ars Technica reports: The proposal says that California-based companies that launch spacecraft will have to pay a tax based upon "mileage" traveled by that spacecraft from California. (No, we're not exactly sure what this means, either). The proposed regulations were first reported by the San Francisco Chronicle, and Thomas Lo Grossman, a tax attorney at the Franchise Tax Board, told the newspaper that the rules are designed to mirror the ways taxes are levied on terrestrial transportation and logistics firms operating in California, like trucking or train companies. The tax board is seeking public input from now until June 16, when it is expected to vote on the proposed tax. The federal government already has its own taxes for commercial space companies, and until now no other state has proposed taxing commercial spaceflight. In fact most other states, including places like Florida, Texas, and Georgia, offer launch providers tax incentives to move business into their areas.
For Texas. Which has a space launch industry of its own, low taxes, and a business climate that's already luring companies from California...
Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)
http://www.lawrenceperson.com/
California loves taxes.
In most other states, for example, beverage containers have a tax ("deposit") that is meant to get all the containers taken away from public spaces, whether by gleaners or by thrifty citizens. In contrast, California sets the tax low enough that it's not worth redeeming unless you're desperate - figuring enough people will blow it off that the state can just keep the majority of it.
Dave Barry said it best: California taxes are high, government is incompetent and corrupt in contrast to Florida: taxes low, government incompetent and corrupt.
Industry itself. Name me one place in the US where you have everything at your finger tips, literally without taking a huge dent in logistical and operating costs. This is why I operate in California and this is why so many still operate in California. I've heard stories of those that moved to Henderson, NV and it's not all roses over there either, especially when your logistical costs sky rocket and the huge labor shortage is preventing you from operating (Amazon in Las Vegas didn't last long, did it?).
And this is where California and its ridiculous taxation is quite well calculated. Not too much to force your hand and just below the level, as annoying as it is.
Can you imagine the astronomical cost (no pun intended) of a deep space mission were this "miles from California" tax actually implemented?
Can you imagine how stupid you would look if you missed a key part of the discussion?
Oh wait, no need, you really did:
In short, the amount of tax on commercial spaceflight companies will decrease the farther the spacecraft travels from California. âoeMore mileage will mean less tax, and less mileage will mean more tax,â Grossman said.
Works the opposite way from how you thought, huh?