Prop. 39 Passes, Closing Tax Loopholes on Corporations

LOS ANGELES (AP) — California voters have approved closing a corporate tax loophole that Democratic lawmakers weren't able to pass through the Legislature.

Proposition 39 was approved in balloting Tuesday.

The Yes on Prop. 39 campaign was largely funded by nearly $30 million from billionaire hedge fund manager Tom Steyer. Steyer says it was an issue of tax fairness.

Proposition 39 closes a provision that allows multistate corporations to choose between two tax formulas. By using just one formula, the state will generate about $1 billion a year.

The Legislative Analyst's Office has estimated the change result in up to 40,000 more jobs in California.

There was no formal opposition campaign but some business and anti-tax groups argued that repealing the tax break would make California less business friendly.

(Copyright 2012 The Associated Press.)