What are the different types of multistate taxes?
There are many different types of state and local taxes. Three of the most common are income tax, sales tax and use tax. These types of taxes may have a different name depending on the jurisdiction. An income tax may be referred to as a franchise tax, privilege tax or a business tax. Sales tax may be referred to as a gross receipts tax, occupation tax or a transaction privilege tax. These latter taxes can apply more broadly than a traditional sales tax. Use tax is a complement to sales tax and generally applies to the use or possession of property. Why should companies proactively address this issue? Proactively addressing multistate taxation allows you planning opportunities. It’s never good to find out you owe taxes due to an audit. A government investigation has a very high cost in terms of your personal time spent dealing with the audit, reviewing and retrieving records, and having to pay lawyers and accountants to defend you. Then you have to worry about actually paying the tax pl
