The nexus standards for state franchise taxes are much broader than for income taxes.
Not only can franchise taxes add up to substantial amounts of money but taxpayers often are unaware of their exposure to them.
also can be paid by mail, addressed to Business & Commercial Services, State Capitol, Little Rock, AR 72201-1094, or in person at the Business & Commercial Services Division in the Victory Building at 1401 W.
The Arkansas Court of Appeals has held that "officers and directors of a corporation who actively participate in its operation during the time when the corporate charter is revoked for failure to pay corporate franchise taxes
are individually liable for debts incurred during the period of revocation.
2003-3 provides that refunds of state or local income or franchise taxes
are includible in the income of accrual--basis taxpayers in the year the refund is received or the year the refund claim is approved by taxing authorities, whichever is earlier.
The Board held that licensing intangibles for use in North Carolina and using in-state representatives to establish and maintain ah economic marketplace established sufficient taxable presence to warrant the assessment of corporate income and franchise taxes
To begin with, unlike the tax involved in Metropolitan Life, the corporate franchise taxes
are imposed by the state constitution.
Accordingly, a QSSS may be liable for a number of "nonincome" taxes, such as franchise taxes
based on net worth, equity or a fixed fee basis.
For instance, a number of states levy both income and franchise taxes
In a dispute in which the state argued that the taxpayer had to likewise use formulary apportionment in computing the receipts factor for apportioning franchise taxes
, the taxpayer argued that because franchise tax liability is based on capital employed in the state and, unlike income tax liability, is not affected by expenses, it should not be required to use the apportionment formula to determine its franchise tax liability simply because its inability to directly account for Mississippi expenses necessitated its use of the formula to determine its income tax liability.