by Douglas Messier
California Assemblyman Tom Lackey (R-Palmdale) has introduced a bill last week that would exempt space transportation companies within the state from a new income tax.
“Recently, the California Franchise Tax Board created a tax on all space travel that launches from California,” Lackey said. “This increased financial strain on space travel will put California space companies at a disadvantage….It’s imperative that we keep the California space industry thriving in our state because it holds a huge potential for jobs and economic growth.”
The measure defines space transportation activity as “the movement or attempted movement of people or property, including without limitation, launch vehicles, satellites, payloads, cargo, refuse, or any other property to space.” Space is defined as being 62 statute miles or higher.
A space transportation company is defined as making”more than 50 percent of its gross receipts from the provision of space transportation activities for compensation in a taxable year.”