 From Site Selection magazine, November 2004 
U.S. LEGISLATIVE UPDATE
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Alabama
A FY2005 balanced budget signed by Gov. Bob Riley in May 2004 contained no cuts to a voter-approved trust fund designed to attract new jobs and industry. While many states were cutting education funding, Alabama saw an increase, as the state's official education budget totaled $4.5 billion. That includes $40 million for a kindergarten-level reading program. At the same time bond funds were targeted for worker training associated with the new Hyundai plant, a new program funded by federal and community college monies was targeted at job training for those industries losing employees to the state's growing automotive industry. The Brownfield Development Tax Abatement Act was enacted. Foreign trade investment zones were authorized for Prichard, in Mobile County; Tuskegee in Macon County; and Selma, in Dallas County. Crenshaw County enacted a sales and use tax intended to be used for industrial development. Chilton County will hold a referendum seeking to extend an ad valorem tax for similar purposes.
Alaska
In July 2004, a bill (SB136) was enacted exempting certain private property development on military installations from taxation. It also contains provisions for tax exemptions for up to five years on deteriorated property that is in the process of rehabilitation. A bill was enacted creating a multi-level seafood development tax (0.5-2.0 percent) on fishery permit holders, revenues from which would be directed toward regional seafood industry development associations. The Murkowski administration is evaluating its overall taxation scheme for oil-related investment, to try and spur more activity in the state's oil patch. Gov. Murkowski is also touting a $23.5-billion plan to build rail, natural gas pipeline and highway links to better connect Alaska with British Columbia and Alberta.
Arizona
A November 2004 ballot measure will ask voters to approve a tax exemption for equipment owned by businesses. Another measure, the anti-illegal immigration initiative known as Protect Arizona Now, is also up for a vote. A new law put into effect new provisions and fees for the state's 125,287 LLCs. A new law authorizes an election, in a county with more than 400,000 but less than 1.2 million persons, seeking approval of a 20-year regional transportation plan and a 20-year 1/2-cent transportation excise tax. An emergency measure allows Arizona's Brownfields Cleanup Revolving Loan Fund Program to award grants, and makes more sites eligible for funding. The program was updated to conform with federal brownfields law, in order to retain $1 million in federal funds which has gone unused since being appropriated in 1999.
Arkansas
On the state's November 2004 ballot is a proposed amendment that would enable the legislature to authorize bonds amounting to up to 5 percent of the state's general revenues to finance infrastructure improvements for projects promising at least $500 million and 500 jobs. Also on that ballot is a measure to raise the property tax rate, from 25 to 28 mills. A challenge to the state's 2003 tort reform law was turned back by the Arkansas Supreme Court in June 2004. A record two-month special session that recessed in February 2004 produced an overall tax increase of $370 million, with most of the new revenues aimed squarely at education. Sales and use tax rates were increased (from 5.125 percent to 6 percent), as were vending taxes, corporate taxes (from 0.27 percent to 0.3 percent) and LLC franchise taxes. In addition, a number of services were rendered subject to the sales and use tax, including installation of flooring and machinery.
California
As of September 2004, a state budget had still not been enacted. For the latest information, go to www.leginfo. ca.gov. Providing impetus to Gov. Arnold Schwarzenegger's multifaceted push to improve the state's business climate, workers' comp reform legislation was passed in April 2004. As of late summer 2004, according to press reports, cumulative rate cuts in base premiums among the state's insurers were hovering around 15 percent. A bill to raise California's minimum wage to $7.75 an hour over the next two years is headed to Gov. Arnold Schwarzenegger, providing a major test of his pledge to reject bills that "harm the state's business climate." Efforts to reinstate the state's expired Manufacturers' Investment Credit were stymied by the state's budget situation and the push to tie such breaks to non-offshoring companies.
Continue to: Colorado . . .
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