As states of all shapes and sizes scramble for more tax revenue, TEC 44 member, Dan Chaudoir, president of Central File Marketing, ran into the long arm of the tax collector in, of all states, Texas. Central File has a one person sales office located in Dallas.
First, Dan learned that because they had an office there the company was required to pay a “franchise fee” of $3500 per year to do business in Texas. And, they wanted two years worth of fees to go away.
Then, the state came after him for sales taxes on all sales shipped to customers in Texas from their production facility in Wisconsin. They didn’t just want two years worth of back taxes to go away this time. They wanted all nine years that the one man Dallas sales office had been in existence. Central File was able to settle for an amount that did not put them on the brink of a negative Z Factor Score. But it was not insignificant.
The point here is, if a “business friendly” state like Texas can become this aggressive with small out-of-state companies like Central File, imagine what the really desperate states will be like. For more on this “heads up” relative to state revenue collectors reaching into the pockets of Wisconsin companies, please contact Dan Chaudoir at dan@centralfileinc.com.
First, Dan learned that because they had an office there the company was required to pay a “franchise fee” of $3500 per year to do business in Texas. And, they wanted two years worth of fees to go away.
Then, the state came after him for sales taxes on all sales shipped to customers in Texas from their production facility in Wisconsin. They didn’t just want two years worth of back taxes to go away this time. They wanted all nine years that the one man Dallas sales office had been in existence. Central File was able to settle for an amount that did not put them on the brink of a negative Z Factor Score. But it was not insignificant.
The point here is, if a “business friendly” state like Texas can become this aggressive with small out-of-state companies like Central File, imagine what the really desperate states will be like. For more on this “heads up” relative to state revenue collectors reaching into the pockets of Wisconsin companies, please contact Dan Chaudoir at dan@centralfileinc.com.
RSS Feed
No comments:
Post a Comment