Sixty-one percent of senior financial executives believe their companies' total effective state tax rate will increase, according to a survey by Grant Thornton.
Just 2.7 percent of the 530 CFOs, senior controllers, and tax executives surveyed believe their rates would go down.
Fifty-five percent of the CFOs surveyed also said their property tax assessments have generally increased over the past three years despite plummeting property values in the wake of the real estate bust. CFOs also said that state and local tax filing responsibilities continue to affect their businesses. Seventy-seven percent said the responsibilities have some, significant or a very significant impact.
Advertisement
The economic crisis is forcing many states and cities to increase their sales tax rates to the highest average level ever, according to a new report.
Meanwhile, tax software developer Vertex reported that 554 U.S. cities changed their sales tax rates in 2008. Of those, 200 were newly imposed city tax rates and 307 were straight increases to existing city tax rates. Other changes in sales, transit and use taxes, combined with new and pending changes for 2009, indicate that state and local governments are scrutinizing tax rates in light of the current economic turmoil. Indiana, Iowa, Maryland and North Carolina increased their state sales tax rates in 2008, and this year California and Utah have increased their state tax rates, with several additional states discussing the possibility of future rate increases.
(c) 2009 Practical Accountant and SourceMedia, Inc. All Rights Reserved.
http://www.webcpa.com/ http://www.sourcemedia.com/
Other areas of interest
