"While the capital stock and foreign franchise taxes
are no longer collected, some may be confused that the explanation of how they are calculated is still in state law." Mako said in a statement.
These strengths are augmented by contractual commitments from the member cities to support revenue shortfalls with loans from their franchise taxes
, up to specified maximum annual amounts.
For example, in California this is accomplished by filing Form 3500A, Submission of Exemption Request, and attaching a copy of the organization's federal determination letter; North Carolina requires a tax-exempt organization to send the Department of Revenue a copy of its articles of incorporation and bylaws to demonstrate its exempt purpose before it will grant an exemption from North Carolina income and franchise taxes
Businesses pay more than $9 billion in franchise taxes
every biennium, nearly double the size of the tax cut proposals that have been offered by either chamber.
The list did not include Pagcor so the BIR began assessing Pagcor for income and franchise taxes
, thus prompting the stateowned company to file a motion for clarification before the high court in September 2013.
In April last year, the BIR issued the revenue memorandum circular 33-2013, clarifying that the income of Pagcor as well as its contractees and licensees are subject to income and franchise taxes
Corporate Income and Franchise Taxes
are not only becoming more complex; they can also be cumbersome and costly for businesses.
Annual reports and franchise taxes
are due by midnight Monday, May 2, to the Secretary of State's Business & Commercial Services Division, Secretary of State Mark Martin is reminding Arkansas businesses.
To avoid multiple layers of taxation here, language should be included in the Bill providing either an exclusion from the calculation of an unincorporated entity's net worth, a credit for franchise taxes
paid by a lower tier unincorporated business entity, or the ability for affiliated entities to file on a consolidated basis.
New York corporations intending to dissolve should keep in mind that it may be possible to pay franchise taxes
and file tax returns even after dissolution.
Unlike income taxes, franchise taxes
are imposed for the privilege of doing business in a state and are not covered by public law 86-272.
As the hunt for additional tax sources continues, Utah business owners concerned about higher franchise taxes
will want to vigilantly monitor the legislative process to determine, and then respond to, any activity that may be counterproductive to their operations.