27, 'the entire gross gaming receipts/earnings or the agreed or predetermined minimum monthly revenues/income from gaming operations under existing rules, whichever is higher, shall be subject to a
franchise tax of 5 percent, in lieu of all kinds of taxes, levies, fees or assessments of any kind, nature or description.
Dumping the
franchise tax will increase pressure for the state to find money elsewhere or to accelerate the shifting of the financial load from the state to local property taxpayers.
Several states impose a capital-based
franchise tax in addition to a corporate income tax.
Pagcor chairman and chief executive said that agency wants its gaming revenues to be exempted from income tax because it is already subject to
franchise tax as well as 50 percent deduction by the Bureau of Treasury.
Most corporations pay the minimum
franchise tax rate of $150.
Ohio enacted the CAT in 2005 "on each person with taxable gross receipts for the privilege of doing business in this state" as part of a major reform that included a reduction of personal income tax rates and gradual repeal of personal property taxes and a previous corporate
franchise tax.
On June 27, 2009, Tax Executives Institute filed the following comments with the Republican and Democratic leaders of the House and Senate Finance Committees of the North Carolina General Assembly concerning North Carolina Senate Bill 202, relating to a bill that would expand the State's
franchise tax to pass-through entities and implement a "throwback rule" for taxpayers selling tangible products from locations in North Carolina to States in which they have no income tax reporting obligations.
The 2005/2006 New York State Budget Act marks the end of the long-standing four-factor formula used in computing the business allocation factor for the corporation business
franchise tax under Article 9-A of the New York Tax Law and the entire net income (ENI) allocation percentage for the bank
franchise tax under Article 32.
Currently, most companies pay a corporate
franchise tax in Texas.
The California
Franchise Tax Board points out that electronic filing of state income taxes jumped 54 percent from last year.
According to Siegler a major concern of the organization is the inconsistent method by which the
franchise tax is computed in New York City.
