![]() ![]() ![]() Understanding what cost deductions are allowed is critical to minimizing the GRTs. Some states, like Texas, allow deductions for specific costs. Categorizing a business correctly and ensuring it does meet the criteria for nexus is a primary consideration. With more states charging GRTs, additional planning opportunities exist to minimize the impact of GRTs in these states. Determining when a return is due and which period to include in the return can be a challenge. 75% applies to “most entities.” Entities with less than $1,000 in tax due or with less than $1,130,000 annualized total revenue owe no tax these entities are still required to file the No Tax Due Report. As the Texas Comptroller’s website explains: the tax rates, thresholds, and deduction limits change annually. One of the better-known GRTs is Texas’ franchise tax. The tax is imposed on revenue of at least $4 million annually, and fees range from. Nevada’s taxing regime includes a table with 27 varying rates based on the category a business falls into for assessment. In 2016 Nevada, which like Oregon formerly was a no state tax state, added a GRT. 57 percent of “calculated taxable commercial activity.” These gross receipts calculations are subject to unitary reporting rules. This CAT is assessed on receipts of $1 million and above, after a 35% deduction for certain costs and is calculated as $250 plus. Nexus includes, but is not limited to, receipts of $750,000 or more, property valued at $50,000 or more, or payroll of $50,000 or more. The tax applies to “persons” that have substantial nexus in Oregon. Its tax is described as a corporate activity tax (CAT) and is effective Jan. Oregon recently joined the group of states with a GRT. Minimizing the impact of GRTs is an increasingly important concern for businesses and SALT professionals. As a result, this is an ideal tax for states needing to raise revenue and one that is being embraced by more and more states. It’s a tax that can be charged multiple times on the same product as well as to businesses operating at a loss. DescriptionĬalled by many different names (corporate activity tax, franchise tax, margins tax, commerce tax, etc.), a gross receipts tax (GRT) is still a tax on receipts. The speakers will discuss which businesses are subject to these taxes, what constitutes nexus in these states, and how to lessen the tax burden of GRTs on businesses. The panel will cover Oregon’s recently enacted corporate activity tax (CAT), Texas’ franchise tax, and Ohio’s CAT, among others. ![]() This webinar will address how to minimize the increasingly popular gross receipts taxes (GRTs) charged by states. ![]()
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