Friday, November 23, 2012

Nevada trying to lure companies from tax-hit California

I think that the low hanging fruit was picked...but now there is more, newer low hanging fruit.
"In terms of businesses in California considering or actually relocating here, I can tell you taxes are the primary motivation," said Brown.

Nevada does not have a personal income tax. The Silver State's sales tax rate is 6.85 percent, with local rates adding as much as 1.25 percent.

Gov. Jerry Brown, D-Calif., bet big in November asking voters to approve the measure to help solve the state's ongoing budget deficit. The Legislative Analyst's Office in Sacramento now predicts a much smaller budget deficit of $1.9 billion through the next fiscal year.

The state's budget shortfall was projected to be $16 billion.

Skancke said don't expect to see a major marketing campaign before the start of 2013.

"It's the end of the year … and to get the creative work done will take some time," Skancke said. "What you'll see our development staff doing is reaching out to their contacts in California. We may do some direct mail and other marketing."

Skancke, who took over running the LVREDC on Nov. 1, said it was a "tough time of year to do anything."

The Silver State is not alone in trying to entice California companies to move. Arizona and Texas are trying to poach jobs from the Golden State, Brown said.

He said both states are specifically targeting companies in Southern California. Brown said Texas and Nevada don't have personal income taxes, while the rate in Arizona ranges from 2.59 percent to 4.54 percent.

The Greater Phoenix Economic Council recently announced it is expanding its California 50 program to 100 California-based CEOs due to high demand. The program aims to fly 50 Golden State CEOs to Phoenix to tour the market.

"The response to the California 50 program has been overwhelming," said GPEC President and CEO Barry Broome. "We've heard from CEOs up and down the California coast, representing firms in the technology, medical device, financial and life sciences industries.

Broome said the companies have ranged in size from 300 to 10,000 employees.

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