State, Local Business Tax Payments Down 3.5 Percent in 2009 As Recession Takes Its Toll on Profits and Earnings, COST Says

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Businesses paid less taxes to state and local governments in 2009 than in 2008, according to a study conducted by Ernst & Young LLP for the Council On State Taxation (COST). The annual review of the state and local tax burden reveals the recession's effect on profits and earnings, which shows up most markedly in the corporate and personal income tax sectors. As a result of the decline in the corporate income tax collections, indirect taxes, such as property taxes, have taken on more importance.

This article is available to subscribers of the Weekly State Tax Report. For more information or to take a trial to the report, click here.