|
A gross receipts tax, sometimes refered to as a gross excise tax, is a tax on the total gross revenues of a company, regardless of their source. It is similar to a sales tax, but it is levied on the seller of goods or services rather than the consumer. This is compared to other taxes which are listed as separate taxes line items on billings, are not directly included in the listed price of the item, and are not a factor in markup or profit on company sales. A gross receipts tax has a pyramid effect which increases the actual taxable percentage as it passes through the product or service life-cycle.[1] This article is the current Taxation Collaboration of the Month. ...
A sales tax is a state or locality imposed percentage tax on the selling or renting of certain property or services. ...
Criticism
John Mikesell, Professor of Public Finance and Policy Analysis at Indiana University, states that "gross receipts taxes are just simply terrible in terms of competitiveness, in terms of economic development, in terms of encouraging investment, and all those sorts of things." He suggests that they don’t make sense from a policy standpoint, and perhaps politics drive such taxes due to their lack of transparency.[2] Indiana University, founded in 1820, is a nine-campus university system in the state of Indiana. ...
United States Several states in the United States have imposed gross receipts taxes. Federal courts Supreme Court Chief Justice Associate Justices Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures State Courts Counties, Cities, and Towns Other countries Politics Portal A state of the United States is any one of the fifty subnational entities of the...
- Texas - Imposed a 1% tax on businesses (retailers pay a .5 percent rate), but exempts sole proprietorships and general partnerships.[3]
- Arizona - Transaction Privilege Tax (TPT)
- Washington - Business and Occupations Tax (B&O)
- Ohio - Corporate Activity Tax (CAT)
- Delaware - Business and occupational gross receipts tax rates range from 0.096% to 1.92%, depending on the business activity.[4]
- New Mexico - The gross receipts tax rate varies throughout the state from 5.125% to 7.875%.[5]
- Illinois - Illinois policy makers are considering a 1% gross receipts tax to increase the foundation level for Illinois public schools, as well as to fund a host of educational accountability initiatives. The tax is expected to generate enough revenue to replace the state share of the retail sales tax, corporate franchise taxes, and corporate income taxes. Proponents claim that it is simple for both the government and business to administer, easy for the public to understand, broad-based, stable, and progressive. An editorial article in the Chicago Tribune called it "the best idea" for education funding reform,[6] but some statewide business leaders have rushed to condemn it.
Official language(s) English (de facto) See also languages of Texas Capital Austin Largest city Houston Area Ranked 2nd - Total 268,581 sq mi (695,622 km²) - Width 773 miles (1,244 km) - Length 790 miles (1,270 km) - % water 2. ...
Official language(s) English Capital Phoenix Largest city Phoenix Area Ranked 6th - Total 113,998 sq mi (295,254 km²) - Width 310 miles (500 km) - Length 400 miles (645 km) - % water 0. ...
Transaction privilege tax (TPT) refers to a tax levied by the State of Arizona on certain persons for the privilege of conducting business in the state. ...
Official language(s) None Capital Olympia Largest city Seattle Area Ranked 18th - Total 71,342 sq mi (184,827 km²) - Width 240 miles (385 km) - Length 360 miles (580 km) - % water 6. ...
Official language(s) None Capital Columbus Largest city Columbus Largest metro area Cleveland Area Ranked 34th - Total 44,825 sq mi (116,096 km²) - Width 220 miles (355 km) - Length 220 miles (355 km) - % water 8. ...
Official language(s) None Capital Dover Largest city Wilmington Area Ranked 49th - Total 2,491 sq mi (6,452 km²) - Width 30 miles (48 km) - Length 100 miles (161 km) - % water 21. ...
Capital Santa Fe Largest city Albuquerque Area Ranked 5th - Total 121,665 sq mi (315,194 km²) - Width 342 miles (550 km) - Length 370 miles (595 km) - % water 0. ...
Official language(s) English Capital Springfield Largest city Chicago Area Ranked 25th - Total 57,918 sq mi (149,998 km²) - Width 210 miles (340 km) - Length 390 miles (629 km) - % water 4. ...
See also This article is the current Taxation Collaboration of the Month. ...
A sales tax is a state or locality imposed percentage tax on the selling or renting of certain property or services. ...
A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of a good or service that is purchased. ...
Notes - ^ Gross Receipts Tax. AIA Kansas (1995-11-17). Retrieved on 2007-02-04.
- ^ Hodge, Scott; Mikesell, John (2007-01-17). Tax Foundation Podcast Episode 19. Tax Foundation. Retrieved on 2007-02-04.
- ^ Dubay, Curtis S. (2006-05-19). Texas Implements Gross Receipts Tax. Tax Foundation. Retrieved on 2007-02-04.
- ^ Gross Receipts Taxes. State of Delaware (2006-06-14). Retrieved on 2007-02-04.
- ^ Gross Receipts Taxes. State of New Mexico. Retrieved on 2007-02-04.
- ^ The war of the 'woulds'. Chicago Tribune (2007-02-09). Retrieved on 2007-02-12.
|
Feeds |
Contact