California small business owners dodge two bullets

California small business owners have released a sigh of relief after two potentially destructive bills, SB-935 and SB-1021 were defeated June 25, in the California Senate.

minimum-wage-californiaSB 935 (Leno) would amend Section 1182.12 of the Labor Code, relating to wages and would have increased California’s minimum wage to $13.00 per hour in the next three years, and pave the way for future increases in the minimum wage depending on future inflation. A recent NFIB study showed that depending on the future rate of inflation, the passage of SB 935 could have resulted in more than 323,000 jobs being lost in California over a ten-year period and a reduction in real output of $224 billion.

While defeated in the Committee on Labor and Employment SB 935 has been granted reconsideration and referred to Assembly Appropriations for another shot at passage out of committee. A long list of supporters was limited to municipalities, government agencies, unions and activist advocacy and service organizations. Takers all.

California Prop 30Despite the passage of Pro 30, California schools still have insatiable appetites. SB 1021 (Wolk) would have enabled 1,000+ California school districts to impose unlimited tax increases on commercial property owners—potentially at a higher rate than residential property. Under SB-1021, school districts could split parcel tax assessments within a district based on one or more rates based on things like square footage and usage. And they could do so as long as the same tax rate is levied on all properties within the same classification of how a parcel is used.

Despite support from California School Superintendent Tom Torlakson, the Alameda, Albany, and San Diego School Districts, as well as the CTA and allied school labor organization, SB 1021 failed to get out of the Assembly Committee on Revenue and taxation. It was opposed by many tax groups throughout California as well as by a large number of business and trade associations, and chambers and business councils.

The National Federation of Independent Business/California released the following statement today about the defeat of Senate Bills 935 and 1021:

“Small business owner thanks our elected officials for preventing these two bills from passing,” said John Kabateck, NFIB/CA Executive Director. “Our leaders realized that now is not the time to increase minimum wage or make it easier to raise property taxes on small businesses, and knowing that these bills will not move forward is huge relief for small business owners.”

“We look forward to working with those in the Legislature on policies that support business and encourage them to expand and create jobs in their communities,” Kabateck continued. “Reducing regulations, taxes and barriers for growth are all top priorities for our members.”