Commercial space travel won’t begin for at least another year or so, but California is prepared to start taxing. The California’s Franchise Tax Board will modify its tax code so that people going to space can be taxed by the mile.
But for companies that travel often there will some incentive to keep it, the more they travel the less money they will ultimately be taxed.
The state released an “Initial Statement of Reasons” document, which says that California “prided itself on being in the technological forefront.” It added that the new regulation “will provide concrete evidence that the state actively engages with industry to address emerging industries.”
The new tax code will apply to commercial passenger travel but also to cargo hauls and any other type of space travel.