Nevws & Notes Taxes Can Dictate Where Companies Locate = = ae eet se es need to create a complete costpicture when considering a new location and taxesare an importantpart of that picture. (NAPSA)—Muchlike with indi- viduals, how much a business pays in taxes depends on whereit is located. That’s one reason state and local taxes are important factors when a company is looking to relocate. es need to create a com- plete cost picture when considering a new location—and taxes are an important part of that picture. “The big costs are typically wages, power, transportation and training employees. Taxes are a smaller part of the budget but they are a real issue,” said Mark Cowan, who teaches corporate taxation issues at Boise State University in Idaho. Taxes And The Bottom Line Profits can be eaten away by variable costs and taxes such as workers’ compensation rates, fuel instead of paying tax on profits, companies pay tax on gross receipts. This means that a company that has experienced an unprofitable year maystill end up being taxed. Passing these higher costs on to customers can make a companyless competitive. Other costs to investigate include: Unemployment insurance and occupation tax Property tax rate Powerrates Workers’ compensation. More Than The “Quality Of Life” If Idaho didn’t have the right lifestyle elements, semiconductor firm Comtech AHA wouldn’t have considered moving there. But a low crime rate, great outdoor recreation and a family-friendly taxes and even individual tax environment made the location expected in different markets. A company that trucks most of its raw materials and goods will businesssense as well. These kindsof factors continue companies that have expensive to this high-quality-lifestyle rates that can impact the wages want to pay attention to fuel taxes; business property, such as motor vehicles or aircraft, will benefit from a property tax exemption. Some states have a “business and occupation tax,” meaning that attractive. With its lower taxes, the move to Idaho made good to bring an innovative workforce Northwestern state. For more information, contact the Idaho Department of Commerce at (800) 842-5858 or go to www.commerce.idaho.gov.
