Facebook IPO to stuff $2.5bn in California tax coffers

California state budget analysts report that Facebook's impending IPO will bring the state a tax windfall of nearly $2.5bn. "Facebook's possible IPO ... [is] likely to generate substantial capital gains and other income for a small number of Californians and, in so doing, generate additional state tax revenues over the next …

[dssf]

What if an employee moves out of Kali... umm, California and then quits?

If the employee moves from California, and actually becomes a resident in, and takes a job or creates a company in a state with a lower tax, is California still "entitled" to its anticipated cut?

It could cause several states to go to tax battle...

[Lance 3]

Re: What if an employee moves out of Kali... umm, California and then quits?

Yes, if the stock options were granted while the person worked in California, then legally the recipient is required to pay incomes taxes in the state they were in when they were issued.

[dssf]

Re: What if an employee moves out of Kali... umm, California and then quits?

But, what if any of the employees live outside of the state and occasionally fly in? I imagine those who telecommute from outside the state may be exempt, but if they work in the SF office remotely, maybe they are on the hook.

SF (from what I heard in 2007) has firefighters who work 3 or 4 days a cycle and then fly back out of SF to their ranches in Colorado, Arizona, or where ever. Some make $90,000 to $200,000 a year, and don't RESIDE in CA, except in the fire house when on duty, or in a hotel if here for work but not on fire-call.

But, imagine having options, getting a $500,000 tax bill, then watching the options go to zero value, and still having the IRS expecting to be paid.... No wonder investing can make people jump from skyscrapers...

[Anonymous Coward]

EXTRA POCKET MONEY

to be wasted by the polititians!

[Anonymous Coward]

Superfluous all-caps title = instant downvote from me

[Anonymous Coward]

NOTE the deliberate mistake

In poli 'tit' ian......

Have a down vote for being as pedantic!

[Sir Cosmo Bonsor]

.

Anonymous + self-righteous attitude = instant downvote from me.

[Lance 3]

Re: EXTRA POCKET MONEY

When did they need extra pocket money in order for it to be wasted?

[Acme Fixer]

Not Really

I and other Californians are not really holding our breath for any windfalls. In the intervening time, with gasoline prices here already over $4, going on $5, we are more likely as not to see whatever windfall wiped out by higher food, transportation and other costs. Someone ought to throttle the Wall St. bunch who speculate on the price of crude.

[Anonymous Coward]

Re: Not Really

From someone paying $7.5 per US Gal in the UK, may I kindly refer you to the response given to the plaintiff in Arkell vs Pressdram

[Local Group]

Good thinking

"LAO's analyst, Mac Taylor, was clearly crossing his fingers as he typed the report."

You should always cross your fingers when you count your chickens before they're hatched.

[Anonymous Coward]

Wonder how much has been knocked off the IPO value this morning, Facebook is MIA, the IP resolves but nobody's home...

[FunkyEric]

Facebook died

And the world carried on as normal!

[Tom 13]

No windfall here.

Kalifornia has already spent the money, and for all the cash Zuckerberger will flush into their coffers, they still have a deficit at least twice as large for next year. It's like Greece on steroids.

[Yag]

"Facebook's stock price climbs significantly above its IPO level"

We've got winner-material for the "joke of the year" award :)

[Michael Wojcik]

And next year...

California's economy will be propped up by selling a lot of really nifty tulip bulbs.