TAX ON FAMILY OWNED BUSINESS MOVES FORWARD

A bill with multiple tax hikes on businesses and identified as a “Job Killer” by the Cal Chamber, passed a major hurdle this week on a party line vote in the Senate Governance and Finance Committee.

SB 567 (Lara; D-Bell Gardens) significantly increases taxes on California businesses, who already have one of the highest tax burdens in the country.  The bill targets family-owned businesses that transfer the business upon death to other family members. Under SB 567, the family members who inherit the business/property, would be forced to pay capital gains on the property that has appreciated in value, if the family member(s) have an adjusted gross income of $1 million or more.

This change would take California out of conformity with federal law, and place another layer of taxes on a small group of Californians paying the highest personal income tax, at 13.3% and will have an overall negative impact on the state’s economy, jobs, and set a terrible precedent.

We will continue to oppose the bill as it moves forward.

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