Sacramento Update

#California’s new #SpaceTax is coming

Not satisfied wit taxing everything on Earth, California regulators are looking to tax your stuff in space.

The state’s Franchise Tax Board is seeking public comment on its proposal for computing taxes on commercial space transportation.

The private spaceflight industry remains small, despite grand ambitions to shuttle everything from tourists to 3-D printers into space. But the board says it created the rules to give entrepreneurs the confidence that once their businesses really start to take off, California’s tax code will be ready to screw them.

The rules are designed to apply to any company operating in California that generates at least half the money it takes in from “space transportation” — defined as the movement of people or property 62 miles above the surface of the Earth. That’s the internationally recognized line that separates our planet from the rest of space.

At least one company has already been lured away from California for the promise of greater financial incentives — though of a more earthly variety. Moon Express, a company working to mine the moon for natural resources, moved from Mountain View to Florida.

Read the whole story in the San Francisco Chronicle

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Categories: Sacramento Update

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