Posts Tagged ‘tax-news’

Former Google UK exec alleges company misrepresented sales to avoid paying …

Sunday, May 19th, 2013

Google and other tech companies have come under fire for exploiting a common tax loophole to book revenues through their Irish subsidiaries, but today The Sunday Times is reporting that a former Google UK executive has evidence of further tax avoidance by his one-time employer. Barney Jones worked for Google between 2002 and 2006 and says that during his time at the company, Google relied almost exclusively on its UK sales staff to secure advertising deals in London, effectively closing deals there rather than in Dublin, where it booked the revenues. Google VP Matt Brittin had previously testified to the Commons Public Accounts Committee (PAC) that “nobody” at Google’s UK office was selling Google advertising, last week revising his statement to clarify that while “a lot of the aspects of selling” ads did happen in London, the Dublin office was actually the one closing the deals.

Jones claims that London sales staff were in charge of sending out ad contracts

The Sunday Times writes that Jones will be submitting some 100,000 documents and emails to HM Revenue and Customs (HMRC) that clarify the innerworkings of Google’s ad operations. In particular, Jones claims that London sales staff were in charge of sending out ad contracts and receiving signed copies back from clients, which could poke holes in Brittin’s earlier testimony. It also notes that Ireland’s corporate tax rate currently sits at 12.5 percent, just over half of the UK’s 23 percent tax on corporate income.

It’s not clear whether the evidence is enough to show malfeasance on Google’s part, but Jones’s claims do add another layer of complexity to the investigations into the company’s tax practices in the UK. Commenting to The Sunday Times, Google’s director of external relations said that “none of the allegations put to us change the fact that Google pays the corporate tax due on its UK activities and complies fully with UK law,” but that it was unable to respond to documents that haven’t yet been made public. We’ve reached out to Google for comment and will update if we hear anything back.

Article source: http://www.theverge.com/2013/5/19/4344842/google-uk-exec-alleges-tax-avoidance-scheme

EXCLUSIVE: Councilwoman Inez Dickens reduces taxes owed on real estate …

Saturday, May 18th, 2013

City Councilwoman Inez Dickens — a top contender to be City Council speaker — won’t have debt collectors hounding her to pay property taxes after all.

The Daily News revealed Friday that she owns half of two Harlem apartment buildings that were scheduled to be part of a tax lien sale. The lien buyers could then have pursued her to pay the debt.

RELATED: CITY TO SELL OFF COUNCILWOMAN $48,000 REAL ESTATE DEBT

But late Thursday, after The News called Dickens’ office about the tax arrears, somebody paid off enough of the tab to keep collections at bay.

The Department of Finance received $25,000 at about 6 p.m. on three buildings Dickens owns with her family: 187 Lenox Ave. and 2153 and 2155 Seventh Ave., the agency said.

RELATED: CITY COUNCIL HOPEFUL SAYS HE’LL DECLINE MATCHING PUBLIC CAMPAIGN FUNDS

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Todd Maisel/New York Daily News

Dickens, a Democrat representing Harlem, inherited ownership of the buildings from her father, late City Councilman Lloyd Dickens.

As a result, all three were taken off the tax lien list, officials said.

Dickens and her family still owe $40,000 in back taxes on the three buildings, according to the city, which will now try to get back the remainder of the money.

RELATED: WHAT THE DICKENS! GADFLY TO CHALLENGE HARLEM COUNCILWOMAN

“If the taxes on the properties are not satisfied, outstanding debts will be at risk of being included in next year’s lien sale same as any other property that owes the city money,” a statement from the Department of Finance reads.

Dickens has said through a spokesman that she doesn’t have anything to do with the day-to-day management of the real estate. Her office didn’t respond to a call seeking comment Friday.

The Harlem Democrat inherited her ownership of the buildings from her father, the late City Councilman Lloyd Dickens.

tmoore@nydailynews.com

Article source: http://www.nydailynews.com/new-york/councilwoman-dickens-reduces-taxes-owed-real-estate-article-1.1347637

Apple CEO wants lower taxes in exchange for job creation

Friday, May 17th, 2013

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Lower corporate taxes in exchange for American jobs? This is the trade-off Apple seems poised to offer.

Ahead of his appearance Tuesday at a hearing of the Senate’s permanent subcommittee on investigations, CEO Tim Cook took an unusual step for the notoriously tight-lipped company: He spoke to the media about Apple’s overseas cash cache and prospective changes to the tax code targeting “job creation, as well as research and development” to induce companies to bring foreign cash home.

Cook told The Washington Post he plans to suggest a “dramatic simplification” of relevant tax laws when he appears before the subcommittee next week. He is likely to face hard questions from lawmakers. The hearing agenda describes itas “the structures and methods employed by multinational corporations to shift profits offshore and how such activities are affected by the Internal Revenue Code and related regulations.”

“I hope to make some clear recommendations, and I trust there will be receptive parties there,” Cook told Politico.

Peter Misek, managing director of technology research at Jefferies LLC, said Cook is smart to get out in front of the debate by proposing alternatives to the tax code. “The position Tim Cook is taking is right for the whole industry,” he said via email. “The U.S. tax code encourages complicated structures to avoid taxes. A simplified and lower rate would likely collapse all that.”

Just over $102 billion of the computer giant’s nearly $145 billion in cash is held overseas, according to the company’s most recent quarterly report. Apple wants to avoid paying what Cook said would be a 35 percent tax rate if that money was repatriated to the United States. “That is a very high number,” he told the Post. “We are not proposing that it be zero… But I think it has to be reasonable.”

Apple is hardly the only company that employs this practice. In March, a Wall Street Journal analysis of 60 big companies found that they collectively parked $166 billion overseas last year to avoid the tax bite.

“We’ve been working with the Subcommittee to answer their questions about Apple, and we welcome any further questions they might have,” a company spokesman said via email. Apple paid $6 billion in federal corporate income tax in fiscal 2012, he said, and has “help[ed] create hundreds of thousands of jobs” in the U.S.

Giving Apple more leeway to bring its cash home could prove tempting to lawmakers, especially given the company’s recent pledge to commit $100 million to building some computers domestically.

According to Politico, Apple will begin manufacturing a “new version of a current Mac product later this year” and is manufacturing components as well as the final product in states across the country, including Arizona, Texas, Illinois, Florida and Kentucky. Apple wouldn’t say which model that would be, but observers have suggested that the Mac Pro, which is due for a refresh, is a likely candidate.

Article source: http://www.nbcnews.com/business/apple-ceo-wants-lower-taxes-exchange-job-creation-1C9971237

In IRS scandal, why is any political group exempt from taxes?

Friday, May 17th, 2013


The Internal Revenue Service is under fire for giving extra scrutiny to conservative organizations that asked for tax-exempt status. But the scandal begs a broader question: Why are political organizations getting this government subsidy anyway?

The section of the tax code sought by the tea party groups was established for the benefit of groups that promote social welfare, generally nonprofit operations. Examples on the IRS website involve community service and groups that provide a certain local benefit.

Somewhere along the line, this longstanding classification has become a loophole exploited by groups seeking to elect Democrats, Republicans and most recently tea party candidates and like-minded groups.

Search the membership of state associations of nonprofit organizations and you’ll have to work to find any that are political in nature. The California Association of Nonprofits in San Francisco lists online more than 1,400 members, yet none have patriot, tea party, progressive or similarly political names.

Yet compare that against the applications in recent years to the IRS for this special tax-exempt status, and a good percentage of the applications appear to be organizations that are decidedly political in nature.

The IRS late Wednesday released the names of 176 applications it had approved through May 9 in its controversial specialized review process. That process is at the heart of the controversy since specialists were flagging applications that had tea party, patriot and other politically charged conservative names.

The 176 approved applications include dozens of tea party groups, as well as others with innocuous names such as Charlotte Matters, Kentucky 912 Project and Miami-Dade Taxpayers Alliance. Some appear overtly political, such as the Coalition for a Conservative Majority, both the Denver and Colorado Springs chapters, and Progressives United Inc.

All were applying for a tax-exempt designation under section 501 (c) of the tax code. This section has at least 25 tax-exempt designations, and the tea party groups were applying under a provision – 501 (c) 4 – that would treat them as social welfare organizations. This allows the groups to raise money from donors and get involved in politics, as long as that’s not their primary activity. Importantly, the donors are not disclosed publicly.

Among the existing 501 (c) 4 organizations are giant election-influencing political entities such as Crossroads GPS and Americans for Prosperity on the right, and the pro-Obama Organizing for America and Priorities USA on the left.

“There are two IRS scandals. The other is the IRS allowing big shadowy forces to meddle in elections anonymously through front groups that file false statements with the IRS,” Sen. Sheldon Whitehouse, D-R.I., said on the Senate floor Wednesday.

The investigative website ProPublica last year spotlighted the growing role of these shadowy groups and their “dark money” on campaign finance, noting that as the 2012 election approached they’d outspent traditional political action committees in the purchase of campaign ads.

Senate Finance Committee Chairman Max Baucus, D-Mont., scheduled a hearing for next week and intends to look beyond the narrower question of tea party targeting by the IRS.

“There is another important question that needs to be asked: Is there a fault in the tax code that may have contributed to the IRS taking such unacceptable steps? Do we need a better definition of what organizations qualify for tax exemptions?” Baucus asked.

Article source: http://www.miamiherald.com/2013/05/16/3401379/in-irs-scandal-why-is-any-political.html

Apple target of Senate hearing on offshore taxes

Thursday, May 16th, 2013

Tech firm Apple is the target of a Senate hearing next week investigating offshore tax practices.

Apple CEO Tim Cook is expected to testify at the Senate Permanent Subcommittee on Investigation’s hearing Tuesday, POLITICO has learned.

Continue Reading


 Apple target of Senate hearing on offshore taxes

Apple has been under fire for its tax practices. The company recently avoided paying as much as $9.2 billion in taxes by buying back stock with debt instead of offshore cash, Bloomberg reported. Apple has a reported $100 billion in offshore funds.

The hearing is part of the panel’s continued examination of how companies shift profits offshore and how that impacts the tax code. Representatives from Microsoft and Hewlett-Packard testified in September 2012 in a hearing on the same topic.

A spokeswoman for Sen. Carl Levin, chairman of the subcommittee, declined to comment.

Representatives from the Treasury Department, IRS and other tax experts are also expected to testify. The committee will make the witness list available Friday, according to its website.

Apple spokesman Steve Dowling told POLITICO that the company has been working with the subcommittee and welcomes any further questions it might have.

“Apple is one of the largest taxpayers in the United States, having paid $6 billion in federal corporate income tax in fiscal 2012,” Dowling said in a statement. “We also help create hundreds of thousands of jobs in the U.S. by keeping our RD in California and creating category-defining products like the iPhone, iPad and the app store, which has generated billions of dollars in sales for software developers.”

This article first appeared on POLITICO Pro at 4:58 p.m. on May 15, 2013.

Article source: http://www.politico.com/story/2013/05/apple-hearing-offshore-tax-91425.html

Texas Explosion Victims in No Mood for…

Wednesday, May 15th, 2013

After a fertilizer plant explosion destroyed part of a small city last month, the leaders of West, Texas, find themselves in the difficult financial position of having to collect property taxes from residents whose homes were destroyed.

No one is more conflicted than West Mayor Tommy Muska, whose home was partially damaged by the blast at West Fertilizer Co. outside Waco April 17 that killed 15 people. And while 55-year-old mayor understands the need to collect revenue, he can identify with the frustatration of homeowners who’re facing an expensive repair of their property.

“It’s a double-edged sword,” Muska said. “I’m a taxpayer as well. I clearly don’t want to pay taxes on a house that’s been damaged like mine’s been damaged.”

READ MORE: Top 5 Misconceptions About Home Insurance

Because appraisal values of homes are assessed on Jan. 1 for school, town and county property taxes, even homeowners with property closest to the plant explosion will get a bill.

But residents can submit a protest of their appraised values postmarked by May 31 to the McClennan County Appraisal District, which evaluates and exempts homes from property taxes, as first reported by the Waco Tribune. They might
be able to argue their case with the Appraisal Review Board, which is a group of citizens who listen to evidence and make a ruling.


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“Some of these people have no home at all,” Mayor Muska said. “Is it fair or not fair? That’s going to have to come from the local tax appraisal district or comptroller.”

It has been a hectic past few weeks for Muska, an insurance agent and the part-time mayor.

“Unfortunately, this month I’ve been a full-time mayor,” he joked.

Muska, a life-long resident of West, lives in a home that was valued at $351,284 last year, but might cost $300,000 to repair. The back of his home faced the fertilizer plant.

The blast destroyed the doors and windows and sheetrock fell into multiple rooms.

“It’s not as much personal property damage as others. I’m very blessed,” said Muska, who lives about three or four blocks from the blast site.

Some of the home repair will be covered by insurance.

“I’m in the insurance business,” Muska said, when asked whether he had purchased insurance for his home. “I have insurance.”

Muska’s property taxes are about $9,000 a year.

“As a mayor and as the guardian, so to speak, of the funds, we are going to need that revenue, which is about a third of our budget next year,” Muska said. “If we don’t have that, we are going to be strapped.”

But even if the town is strapped financially, Muska said the community will make do. He calls the city council “very fiscally conservative.”

“If we have to, we will tighten our belts,” he said.

The average home value in West is $104,000, and the city counts about 2,800 people, according to the 2010 Census.

Homeowners pay about $2,000 on average a year in property taxes, according to Andrew Hahn Jr., the chief appraiser of McLennan County Appraisal District.

“There’s not much we can do,” Hahn said of the property taxes from damaged homes.

In the event of a natural disaster, there is a reappraisal for property damage. But the explosion was not a natural disaster.

“It’s just a sad situation for everyone. We hope they get their lives back together,” Hahn said.

In Hahn’s office, several people were affected by the tragedy, including an appraiser who lost his home and those who personally know people killed in the blast.

Muska said he submitted a request to challenge the appraisal, but he will follow whatever the appraisal body decides.

“I’ll be honest with you,” he said. “I hope they accept my protest. If they don’t, I’ll pay it.”

Muska hopes the state will offer additional aid, as the economic effects of displaced residents ripple through the community.

“We’re going to move forward,” he added, “in my personal home as well as the city.”

Article source: http://abcnews.go.com/Business/texas-fertilizer-explosion-victims-mood-pay-property-taxes/story?id=19176352

Let The IRS Stick To Collecting Taxes

Tuesday, May 14th, 2013

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A different type of storm for IRS to weather

The current flap about the IRS exempt organization group in Cincinnati, the gang that couldn’t sort straight, has some people asking whether the IRS is tough enough on the political activities of exempt organizations, specifically 501(c)(4) organizations.  Citizens For Responsibility and Ethics in Washington (CREW).  CREW has a lawsuit going against the IRS maintaining that 501(c)(4) organizations should not be permitted to engage in any political activities:

According to federal law, groups seeking tax exempt status under section 501(c)(4) must be “operated exclusively for the promotion of social welfare.” The IRS, however, issued a regulation undermining this clear language by requiring such groups only to be “primarily engaged” in promoting social welfare. This has allowed some groups to conclude up to 49 percent of their overall activities may be political. The lawsuit simply asks the court to require the IRS to interpret and apply the law the way Congress wrote it.

CREW’s executive director, Melanie Sloan, issued a statement in light of the forthcoming congressional investigation:

What happened at the IRS was wrong, but let’s not be sidetracked.  The real problem is that phony 501(c)(4) groups are exploiting the tax laws to protect donors who don’t want to be held accountable for vicious, deceitful political ads.  Hopefully this scandal will put these obscure but politically significant groups on the public’s radar.

“During the congressional hearings this week, members should question all aspects of 501(c)(4) enforcement, including why an IRS regulation allows these groups to work ‘primarily’ for the social welfare when the statute requires them to engage in such activities ‘exclusively,’ as well as why the IRS has allowed some groups to violate even the lax primary purpose standard without consequences.

I spoke with Ms. Sloan and she indicated that she would like to get the IRS out of this.  The simple way to do that would be to prohibit political donations by 501(c)(4) organizations.  That would not put any limit on political spending, just anonymous political spending.

I’m inclined to agree with Ms. Sloan.  Collecting taxes is an enormous, complicated job.  If we are going to have deductible charitable contributions then we need the IRS to be looking at some charities, but organizations end up applying for exempt status for a large variety of reasons that have nothing to do with taxation.  501(c) status creates an unjustified patina of respectability in some circles and, in some states, will allow privileges such as running gambling operations.  Some people seem to think that 501(c)(4) status can hide the fact that you grass-roots populist movement is backed by billionaires.  What these extraneous matters have in common is little or no connection to the IRS mission:

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

I’m not sure how important transparency in political expenditures is.  It seems like the fact that somebody is obfuscating where the advertising money is coming from should be enough of a credibility hit.  On the other hand the lengths that people go to do the covering up  makes me think they are accomplishing something with it.  We’ve got a Federal Election Commission that is supposed to be taking care of that.  That is where the enforcement effort belongs.  Let the IRS focus on collecting taxes.

You can follow me on twitter @peterreillycpa.

Article source: http://www.forbes.com/sites/peterjreilly/2013/05/14/let-the-irs-stick-to-collecting-taxes/

Egyptian assembly approves higher taxes on the wealthy

Tuesday, May 14th, 2013


CAIRO |
Mon May 13, 2013 1:05pm EDT

CAIRO (Reuters) – Egypt’s parliament approved a new income tax law on Monday that will increase levies paid by the wealthy and by companies but reduce it for people in lower income brackets.

Income inequality was one of the issues that sparked the uprising that ousted autocratic president Hosni Mubarak in 2011.

President Mohamed Mursi’s Muslim Brotherhood held up the changes as proof of its commitment to social justice – a possible vote winner with parliamentary elections approaching later this year.

The new tax regime may also help Egypt in its negotiations for a $4.8 billion loan from the International Monetary Fund. The IMF is asking the government to reduce a budget deficit expected to reach 11.5 percent of gross domestic product in the year to end-June.

The new taxes, which have yet to be ratified by Mursi, will become effective within one month of their final approval.

“The law aims to achieve social justice and increase taxes on those with higher incomes. The changes are biased towards those with limited incomes,” said Mohamed El-Feki, chairman of the Shura Council’s finance and economy committee.

The Shura Council, or upper house of parliament, is responsible for passing legislation in the absence of a lower house. Mursi has said elections for the lower house may get under way in October.

All companies would be taxed at a unified rate of 25 percent, compared to the present law that charges those earning less than 10 million pounds per year at only 20 percent, Mamdouh Omar, head of Egypt’s tax authority, told Reuters by telephone.

People earning under 5,000 Egyptian pounds ($720) a year would remain exempt from all taxes, as before. But the rate on those making more than 250,000 pounds would rise to 25 percent from 20 percent, the state MENA news agency reported. ($1 = 6.9562 Egyptian pounds)

(Reporting by Patrick Werr and Ehab Farouk; Writing by Patrick Werr; Editing by Mark Heinrich)

Article source: http://www.reuters.com/article/2013/05/13/us-egypt-taxes-idUSBRE94C0RJ20130513

Minnesota budget deal: Higher taxes on high earners, tobacco

Monday, May 13th, 2013



 Minnesota budget deal: Higher taxes on high earners, tobacco

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    d7380 ows 136841072736713 Minnesota budget deal: Higher taxes on high earners, tobacco
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    Gov. Mark Dayton wore a broad smile as he and DFL legislative leaders announced the broad outlines of a two-year budget deal.

    Photo: RICHARD TSONG-TAATARII • rtsong-taatarii@startribune.com,

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    DFL Gov. Mark Dayton and Democratic legislative leaders reached a budget agreement Sunday that calls for $2 billion in new taxes and boosts spending for schools and property tax relief.

    The Democrats are relying on a tobacco tax hike and the governor’s long-sought income tax increase on high earners to pay for the new spending. The budget outline scraps a proposed sales tax on clothing, but lawmakers continue to consider resurrecting at least part of a heavily criticized plan to tax businesses services.

    “It’s a budget that is going to work for Minnesota. It’s going to put Minnesota to work,” Dayton said Sunday afternoon. “It’s going to fulfill our promises to invest in education and infrastructure. We’re going to see a better Minnesota as a result of this budget.”

    Legislators now have the framework of a budget deal to guide the closing week of the legislative session and knock down a projected $627 million budget deficit. The plan includes a temporary income tax surcharge on the state’s wealthiest residents to repay the $860 million owed to public schools. The budget outline also boosts education spending by $725 million and gives Minnesotans $400 million in property tax breaks.

    The surprise Mother’s Day budget agreement angered Republicans who had little say in the plan.

    “Disappointing news out of the DFL that their gift for every hardworking mother in the state of Minnesota is going to be more than a $2 billion tax increase,” said House Minority Leader Kurt Daudt, R-Crown. “This is bad news today for Minnesota’s economy.”

    This is the first budget outline since DFLers took control of the Legislature this year, giving them almost complete control to direct state spending and taxing as they see fit. The state has clawed its way out of the worst recession in decades, a downturn that forced state leaders to cut spending by more than $2 billion in recent years.

    Breaking the deficit cycle

    Dayton and Democratic leaders say now is the time to restructure the state budget for the long haul and break the cycle of back-to-back budget deficits.

    Senate leaders continue pushing for sales tax reform and want to expand the tax to include some business services, like accounting and legal fees. Dayton included the ­business taxes as part of an ­earlier budget plan, but he hastily withdrew the blueprint amid intense criticism from business groups and leaders of the state’s largest companies.

    “What I said from the very beginning was, it’s very bold and we’re going to take a look at the whole menu of business-to-business services,” said Senate Majority Leader Tom Bakk, DFL-Cook, a longtime advocate for retooling the sales tax. “There are likely things in there that are worth doing that I don’t believe would have any impact on Minnesota’s economy.”

    More details promised

    Bakk said they will have more details in coming days on what business services would be subject to taxation. He insisted that any new revenue collected would go directly toward economic development and reducing other taxes.

    Some additional tax hikes could still be in the works, such as an increase in the alcohol tax. A proposed salary increase for legislators, the governor and top commissioners remains in play, as well.

    “It’s just simply more overtaxing, overspending, overreaching,” said Senate Minority Leader David Hann, R-Eden Prairie.

    The governor and DFL legislators are also trying to reach an agreement on about $800 million in state-backed construction projects, including a massive restoration of the State Capitol and smaller projects around the state. State borrowing requires a larger majority of votes to pass and so far ­Republicans said they are not inclined to offer up the necessary votes. Hann said there is “little appetite” among Senate Republicans to boost state borrowing.

    Democrats are seeking $50 million in reductions to Health and Human Services, a much smaller trim than earlier proposals. The cuts represent a tiny fraction of the agency’s multibillion-dollar budget.

    Other budget winners



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    • d7380 1dayton051313 Minnesota budget deal: Higher taxes on high earners, tobacco

      Gov. Mark Dayton and legislative leaders on Sunday announced a budget deal that would raise about $2 billion in new revenue, but includes $400 million in property tax breaks. Behind him is House of Representatives majority leader Paul Thiessen.

    • d7380 ows 136841073737677 Minnesota budget deal: Higher taxes on high earners, tobacco

      Senate Minority Leader David Hann, left, and House Minority Leader Kurt Daudt gave their skeptical response to Governor Mark Dayton’s budget deal, which was announced Sunday afternoon.

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    Article source: http://www.startribune.com/local/207121531.html

    These 6 States Have the Lowest Beer Taxes

    Sunday, May 12th, 2013

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    Everywhere you turn, it seems like there’s a new tax you have to pay. Recent news that the federal government could allow states to start taxing Internet transactions has raised an uproar among shoppers who for years have been able to use online retailers to avoid sales tax.

    As we examined yesterday, beer-drinkers get hit hard in many states that impose high excise taxes on the beverage. At the state and local level, although state income taxes, property taxes, and general sales taxes provide a lot of tax revenue, most states also use other taxes to find more money for government programs. But some states don’t make drinking beer nearly as expensive. Turning once more to the Tax Foundation for data at the state level, let’s take a look at the six states that charge the least in excise taxes per gallon on beer sales, along with figures from the Beer Institute showing where they rank in terms of beer consumption.

    bc382 low beer taxes large These 6 States Have the Lowest Beer Taxes

    6. Oregon
    Oregon weighs in with the sixth lowest tax rate in the nation, as it has excise taxes that round to just $0.08 per gallon. Even with beer consumption of 30.2 gallons per person putting the state right around the middle of the pack, the microbrewery industry is especially important in the Pacific Northwest, and Oregon’s low excise taxes help provide support for small microbrewers seeking to sell their products in-state. Moreover, with very high income-tax rates, Oregon generally has other sources of tax revenue to rely on.

    4 (tie). Colorado
    Colorado’s beer excise taxes also come in at $0.08 per gallon, perhaps reflecting the importance of the Coors brand of Molson Coors (NYSE: TAP  ) to the state’s overall economy. That’s a trend you’ll see elsewhere on the list, as well as with Massachusetts, which just barely missed the list at No. 7 and provides the headquarters for craft-brew specialist Boston Beer (NYSE: SAM  ) . Per-capita beer consumption of 30.9 gallons per year leaves Colorado at No. 20 nationwide.

    4 (tie). Pennsylvania
    Pennsylvania’s $0.08 beer excise tax matches Colorado’s perfectly, leaving the two states in a tie. But Pennsylvania’s per-capita consumption of 29.1 gallons per year doesn’t even crack the top half of all states. Ample tax revenue from income and general sales taxes appears to be sufficient to allow the state to let beer-drinkers off the hook for a big tax bill.

    3. Wisconsin
    Wisconsin also has a major brewing presence, as the traditional location of SABMiller‘s Miller Brewing. With beer excise taxes of $0.06 per gallon, the state’s drinkers are highly appreciative, as Wisconsin ranks sixth in the country for per-capita beer consumption at 36.2 gallons. High income and property taxes also give the state government alternative revenue.

    2. Missouri
    The traditional home of Anheuser-Busch InBev (NYSE: BUD  ) , Missouri charges just $0.06 per gallon in beer excise taxes. Again, the key presence of a major brewer is probably behind the state’s decision to minimize taxes on beer. Somewhat surprisingly, beer consumption isn’t all that high, with the 31.1 gallons per year of beer that the average person drinks barely enough to put Missouri into the top 20.

    1. Wyoming
    Why Wyoming would have the lowest beer taxes in the nation isn’t immediately obvious, but at $0.02 per gallon, no other state even comes close. What’s particularly surprising is that with no state income tax, Wyoming might typically try to use beer taxes as a way to collect revenue. Beer consumption is fairly high, with 32.4 gallons per person annually putting the state almost into the top third.

    Protecting their own
    As many of these figures show, states often take steps to protect important industries within their borders, and so many of the states with the lowest beer taxes have major beer companies that do business there. The net result, though, is a big benefit for beer-drinkers who live or purchase beer in those states.


    Article source: http://www.fool.com/how-to-invest/personal-finance/taxes/2013/05/12/these-6-states-have-the-lowest-beer-taxes.aspx