3 Key 2016 issues facing NFIB/California Members

Date: December 15, 2015

From facing a hike in the minimum wage to $13 to collecting an additional $10 billion in sales taxes, California small business like you are staring down some difficult legislative obstacles in 2016. NFIB will continue to fight for your right to own, operate and grow your small business. 

SB 3 (Leno): Minimum Wage Increase

NFIB/CA’s position: Oppose.

Bill description:

Raises the minimum wage to $11/hour on January 1, 2016, and again to $13/hour by July 1, 2017. After January 1, 2019, it requires an annual increase based on inflation, but prohibits any future decreases. This is another $3/hour over the last increase that was just passed, and will add another $7,500 annually to a full-time minimum wage worker’s employer costs. This is on top of the $5,000 added by AB 10 in 2013 for a whopping total of $12,500 per employee in new costs. That’s $125,000 for a small business with 10 minimum wage employees! Let’s not forget that CA law requires exempt employees to make twice what a full-time MW employee makes – that’s a $10/hour increase.

SCA 5 (Hancock/Mitchell): Split Roll Property Tax  

NFIB/CA’s position: Oppose.

Bill description:

This bill completely undermines Proposition 13 by requiring all business properties to be reassessed annually, resulting in new baselines each year and consequently huge tax increases for business owners. This will even impact businesses who lease their property. This measure would exempt from taxation an amount up to $500,000 of tangible personal property used exclusively for business purposes (i.e. business equipment). A report from Pepperdine University’s Davenport Institute reveals that taxing commercial and industrial property without Proposition 13’s protections would result in $71.8 billion in reduced economic activity and a loss of 398,345 jobs over the first five years, with impacts increasing over time. This is a constitutional amendment and does not have to meet the deadlines.

SB 8 (Hertzberg): Sales Tax on Services

NFIB/CA’s position: Oppose.

Bill description:

Extends the state sales and use tax to services, generating another $10 billion annually in new taxes. This is a tax levy and does not have to meet the deadlines. The author is hoping to make it a ballot measure.

Related Content: Small Business News | California | Economy

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