The Orange County Register has the story: Manufacturer moves to Texas after 42 years in O.C.EDM Laboratories Inc., founded in Orange County in 1969, has moved to Corpus Christi, Tex. because California taxes and fees are too high, said owner Mike St. Amand.Here some cost details from the article:
“The main thing that was getting tough — and I think this is true of every manufacturing company in California — is the state charges sales tax on leased equipment,” he said. “If you leased $1 million in equipment, you’d pay $25,000 a month in lease payments and then pay $1,900 a month in sales tax. Most states don’t do that.”
Plus the county charges property tax on the equipment, which many states don’t charge, he added.
“My company truck registration cost $600 a year (in California) and $85 in Texas,” he continued. “My car insurance is less here. Gas is 50-cents-a-gallon cheaper. Electricity cost me $3,000 a month in California; last month running the air conditioning full time it cost $800.”
These are the challenges that are facing every California Company. It is not wonder that companies are leaving the state.
H/T to a regular readers for providing a link to this stroy.