California (ACA 11) Proposes to Increase California Taxes

On January 05, 2022, a constitutional amendment was proposed that would impose three additional taxes on California businesses and residents. First would be a new 2.3% gross receipts tax on receipts in excess of $2,000,000. Second, would be a new 1-1.25% payroll tax on businesses with 50 or more employees and on payroll in excess of $49,900. Lastly, an additional surtax of up to 2.5% on residents. This surtax would put renewed importance on avoiding becoming a California resident or alternatively, moving out of California to become a resident of another state with a more favorable income tax.

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