The New Breed of Gross Receipts Taxes and Their Implications For Economic Policy, Constitutional Concerns, Financial Reporting

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

In the past few years, states have begun to turn to gross receipts taxes as a substitute for the corporate income tax, with some taxing regimes incorporating elements not typical of traditional gross receipts tax systems. In this article, Michael H. Salama, Brandee A. Tilman, and Leanne C. Webber, all with The Walt Disney Co. in Burbank, Calif., explore the implications of these new regimes, with particular attention to constitutional questions arising under the Michigan business tax, the Ohio commercial activity tax, and the Texas margin tax.

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