The corporation excise tax is a tax imposed on businesses operating as corporations. It is typically based on the income generated by the corporation during a specific period. This tax is often viewed as a fee for the privilege of conducting business within a particular state, rather than a tax on the corporation's property or assets.
This term is primarily used in the context of corporate taxation law. It falls under the broader category of business taxes, which may include income tax and franchise tax. Corporations must comply with state-specific regulations regarding the excise tax, which can involve completing necessary forms and filing returns. Users can manage these processes using legal templates from US Legal Forms, designed by experienced attorneys.
Here are a couple of examples of abatement:
For instance, if a corporation operates a retail store in Oregon and earns $100,000 in net income during the tax year, it may be subject to the Oregon corporation excise tax based on that income. (hypothetical example)
One significant statute related to corporation excise tax is Oregon Revised Statutes § 317.010, which outlines the framework for the tax as a franchise tax for the privilege of doing business in Oregon. Additionally, case law such as Welch Holding Co. v. Galloway provides judicial interpretation of the requirements for taxation under this statute.
| State | Tax Rate | Notes |
|---|---|---|
| Oregon | 6.6% on income over $1 million | Franchise tax based on income. |
| California | 8.84% on net income | Minimum franchise tax applies. |
| New York | 6.5% on income | Additional taxes may apply for large corporations. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
If your corporation is subject to the excise tax, ensure you accurately report your income and file the appropriate tax forms with your state's tax authority. Consider using legal form templates from US Legal Forms to simplify the process. If your situation is complex, consulting a tax professional or attorney may be beneficial.
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It is a tax imposed on corporations based on their income for the privilege of doing business in a state.