Anders, a local business, wants your help in making a decision about a large capital investment. To assist your client, list several tax and non-tax implications of the decision
Businesses operating in a multistate environment seldom make critical decisions based on tax factors alone. The following events might bring up important state and local tax issues.
? Location of a plant expansion or distribution center.
? Increases in spending for high-tech or other equipment.
? Concentration of sales activities using catalog and Internet exposure.
One must examine the implications of this decision on Anders's state and local corporate income taxes, including the payroll, property, and sales factors; sales/use tax obligations and collection responsibilities; property tax and other business licenses and fees; and income tax effects on its employees and contractors.
In addition, the investment might bring about changes as to Anders's market share for its products; price levels for wages and supplies; quality of local labor; transportation and communications costs; and fee structures and regulation climate of the state and local environment.
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