Assignment: Tax Benefits In Four Cities
Lawrence, Kansas-Medium
El Paso,Texas- Large
Nashville,Tennessee- Medium
Moreno Valley, CA. - Medium
1. All states, except for KS, NY, PA, MD and Iowa annually charge property tax equal to 2% of the depreciated cost of the equipment.
2. Assume a Sales tax rate 7.5% -for all states on all property excluding land. Assume that the States of TX, MD, IN, AK and TN exempt manufacturing equipment from Sales tax.
3. States will charge 2% tax annually on the market value of land and buildings. Assume that original cost equal market value when computing the tax.
4. NY and TN will provide an investment tax credit equal to 5% of the cost of the investment excluding land in the new plant. This will be a reduction to the income taxes in the year the plant becomes operational.
5. Assume income tax State rate of 8%
6. Assume a federal income tax rate of 21%
7. Texas will offer a $5,000 grant for each new job where the pay is at least 150% of the minimum wage and it includes benefits.
8. The States of GA, KS, AR, TN, NY, PA, FL, TX, MD, IN and MO will reduce the property taxes by 60% if there is a minimum of 50 new jobs.
9. IN will provide as a grant - the refund of state income taxes on payroll wages in the year the payroll taxes are paid.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.