Sacramento, C.A. – In January, an investigative report by the Los Angeles Times discovered the City of Oakland gave $27 million in tax breaks to companies located outside the city’s boundaries. The tax credits were granted to companies through the city’s enterprise zone program. The report revealed that old census data and ambiguous qualifications for the tax credits provide companies millions in tax breaks without creating employment in low-income communities.

"Tax breaks issued through enterprise zones are intended to promote revitalization in low-income neighborhoods by providing companies with tax relief. Unfortunately, too often enterprise zones provide substantial tax loopholes for companies while leaving the poor behind," said Assemblywoman Loni Hancock (D-Berkeley). Hancock has proposed AB 2426 which will require companies to annually disclose how much in tax credits, exemptions, or deductions they are receiving from the State of California.

"I am concerned about the transparency in the state’s tax system. The enterprise zones are an example of tax credits meant to revitalize low-income neighborhoods. The people of California deserve to know if this purpose is actually being accomplished. There are many needs in the state- schools, housing, and police protection. There is no money to waste," said Hancock.

"Currently, we do not even have the basic information needed to evaluate state programs such as the enterprise zone program. This measure will give policymakers the data they need to ensure that California tax dollars are well spent," said Jean Ross of the California Budget Project, an independent budget and policy analysis group.

Please call Armando Viramontes at 916-319-2014 to set up an interview.