California-based private space companies to avoid property taxes

California may boast some of the highest taxes in the Union, but if you're in the movie industry or the private space business, there are few better places to conduct your affairs.

As it has done for many years with the film industry, California is offering tax incentives to private space companies -- having recently passed legislation liberating companies like Elon Musk's SpaceX from property tax duties for ten years.

Governor Jerry Brown signed the new bill into law Tuesday.

"I introduced AB 777 to support and grow one of the most exciting new industries in California, commercial space flight," Assembly member Al Muratsuchi, D-Torrance, said. Muratsuchi serves as Chairman of the Assembly Select Committee on Aerospace.

"Private companies like Space X are building rocket ships and creating thousands of good paying manufacturing jobs right here in Southern California," Muratsuchi added. "This new law will allow commercial spaceflight companies to continue to invest and grow in our state."

The bill could make the budget balancing responsibilities of Brown and Muratsuchi just a wee bit harder, as the legislation is expected to deplete local property tax revenues by roughly $1 million annually.

California's Chamber of Commerce has been supportive of the bill from the beginning, calling it a "job creator" law.