How Have Business Tax Regulations for States Changed in 2015? regulations

While most people agree the only certainties in life are death and taxes, figuring out how to pay all the taxes you owe may seem impossible. As a result, attempting to decipher all the changes to taxes is getting harder and harder each year. While many people are calling for sweeping tax reform in Washington, many individual states are choosing to take the initiative themselves and pass tax reform for their citizens. One area where sweeping reform has taken place is in business tax regulations, and if early reaction is any indication then 2015 promises to be a year few people are likely to forget.

One state that is looking at major changes soon is Louisiana, where Governor Bobby Jindal has pushed for elimination of the state’s income and corporate taxes, instead replacing any lost revenue from these taxes with additional revenue from higher sales taxes. While some critics believe making these changes has ultimately put an additional burden on the middle-class and poor, others believe elimination of state income and corporate taxes instead makes Louisiana much more attractive to businesses that are looking for states in which they can locate new industrial buildings or other facilities.

Another southern state, Florida, has made interesting changes to its business tax regulations. To help ease the burden on smaller corporations in the state, Florida has increased the corporate income tax exemption from $5,000 to $25,000. While this may sound as if Florida has placed a higher burden of taxes on bigger corporations, the state believes the opposite is true. Smaller corporations with less than $25,000 of Florida income will pay no taxes, which will offer smaller businesses more incentive to locate to the Sunshine State. Because these regulations are relatively new, it’s a good idea to consult with an experienced Orlando CPA. More information about them or other Orlando accountants can be found at www.TaxBuzz.com.

In North Carolina, business tax regulations have for years been viewed as deterrents to business growth and being able to attract new businesses to the area. To remedy this situation, State Senator Bob Rucho helped push through legislation that eliminated individual and corporate income taxes. Instead, the state looks to actually increase revenue by creating a new business license fee and higher taxes on goods and services including food, legal services and spa treatments. If projections hold true, North Carolina will see its budget look vastly different than in years past. Prior to this legislation, the state received over 65 percent of its $18 billion tax revenue from individual and corporate income taxes.

Other states that have enacted similar measures to North Carolina include Oklahoma and Kansas, which also look to shift the tax burden away from corporations and put it on what are perceived as “conveniences” such as spa treatments and other services. However, these changes have not gone over well with small businesspeople, who worry their businesses will suffer as a result of these changes. However, these changes in business tax regulations are here to stay for the moment, so citizens in these states will have to learn to adapt accordingly. As with anything concerning taxes, there is still much debate expected as critics and supporters alike work hard to convince citizens their approach will work best.