A recent article in Fiscal Times discusses the issue of state income tax on out-of-state franchisors, a trend that is growing in popularity among a variety of states.
Today, more than 150 businesses nationwide wrote a letter to Speaker Boehner and Leader Pelosi urging them to enact the Business Activity Tax Simplification Act this year. The businesses, which include many franchise companies, want to put an end to unfair, confusing and costly state corporate income taxation.
The Coalition for Interstate Tax Fairness & Job Growth, a group representing the interests of small and large businesses nationwide, re-launched today with a new name, website and strategy to combat unfair state and local corporate income taxation and support the Business Activity and Tax Simplification Act (BATSA).
One of the pieces of legislation currently pending before Congress that has the potential to significantly affect franchisors is the Business Activity Tax Simplification Act, or BATSA. BATSA would clarify federal tax law by resolving the question of economic “nexus” that is required for a state to succesfully impose an income tax on out-of-state companies.