As you’ve undoubtedly heard by now, the recent elections resulted in the passage of two taxrelated California propositions:
Proposition 30. With the passage of Proposition 30,California’s sales tax rate will increase .25% from 7.25% to 7.50%.  Additionally, Proposition 30 will result in increased individual tax rates (retroactive to 1/1/12) for high income earners. Prior to the passage of proposition 30, California’s top rate was 9.3% (10.3% for incomes over $1 million). The rate increases are progressive (from 1% to 3%) and will come into effect as follows:
1% increase:
Individuals with taxable incomes of $250,001 to $300,000. Heads of Households with taxable incomes of $340,001 to $408,00. And Joint filers with taxable income of $500,001 to $600,000
2% increases:

Individuals with taxable incomes of $300,001 to $500,000. Heads of Households with taxable incomes of $480,001 to $680,000. And Joint filers with taxable income of $600,001 to $1,000,000
3% increases:
Individuals with taxable incomes over $500,000. Heads of Households with taxable incomes over $680,000.  And Joint filers with taxable income over $1,000,000.
The other proposition that passed that is expected to result in additional tax revenue is Proposition 39, known as the single sales factor apportionment formula. Proposition 39 requires that taxpayers use a single sales factor apportionment formula to apportion income from multistate tax activities to California, beginning with the 2013 tax year.  Prior to the passage of proposition 39, taxpayers could make an annual election to use the single sales factor apportionment formula rather than the standard double weighted sales apportionment formula based on property, payroll and sales factors. There are some exceptions for businesses that derive more than 50%  of their gross business receipts from one or more  qualified business activities such as, agriculture, extractive, savings and loan and banking or financial business activities. For more information or details on Proposition 39, please contact us. 
Written by Alan Bertozzi, CPA LinkedIn Profile