Amid Bay Area Exodus, New Factor Emerges For States Luring Headquarters

(Disclosure: Rose Law Group represents Ann Siner of My Sister’s Closet and Judge John Buttrick in their litigation efforts against 208.) 

By Mark Calvey | San Francisco Business Times

Bay Area companies leaving California often cite lower taxes and a business-friendly environment in requirements for their new hometown. But another factor could be emerging on the wish list for their new destination: A difficulty in raising taxes once they get there.

It hasn’t been a known factor in a California relocation yet, but the issue moved onto the radar screen after Arizona last month passed Prop. 208, a 3.5% income-tax surcharge on high earners, taking the tax on married couples making more than $500,000 a year from 4.5% to 8% to pay for higher teacher salaries. The tax hits businesses that pass through or report income on the owner’s personal income tax returns.

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Help fund the litigation effort of a small business owner and retired Judge in challenging the constitutionality of Proposition 208.