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The legislation, passed in 2009, permits businesses to choose whether they would like their income tax based on sales, payroll or property in addition to tax credit sharing amongst their affiliated businesses.

If it had passed, Prop 24 would have created approximately $1.3 million in state revenue by 2012-2013. But opponents say that California’s budget woes should and will not be fixed by increasing taxes on businesses.

The Orange Country Register, who opposed the proposition, said, “It’s the wrong fix to address California’s budget woes by increasing taxes on employers. The result would be to put the brakes on any hiring, push more businesses to leave the state for more favorable environments; and translate into even more job losses and higher unemployment for Californians. Prop. 24 would extract more money from small businesses and employers of all sizes…”

To reach reporter Marlise Knechtle, click here.