Friday, May 5, 2017

A New California Tax

Home to the Mojave Air & Space Port and promising launch companies such as SpaceX and Virgin Orbit, California has a thriving rocket industry. Accordingly, the state is now looking into taxing this vibrant industry, and the Franchise Tax Board has issued a proposed regulation for public comment.
The proposal says that California-based companies that launch spacecraft will have to pay a tax based upon "mileage" traveled by that spacecraft from California. (No, we're not exactly sure what this means, either). The proposed regulations were first reported by the San Francisco Chronicle, and Thomas Lo Grossman, a tax attorney at the Franchise Tax Board, told the newspaper that the rules are designed to mirror the ways taxes are levied on terrestrial 
I am also unsure what "mileage" from California means, but the first probe to Alpha Centauri will solve their budget problem forever.

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