2017 is finally upon us. There are a lot of changes that we should expect to happen to taxes over the course of the next few years. But as of the first, many states have already begun changing their tax codes. Corporate income taxes are one of the areas in which we will be seeing multiyear reductions and reforms. We will look at the five states (four states and capital) that reduced or will reduce their corporate tax rates in 2017: Arizona, The District of Columbia, Indiana, New Mexico, and North Carolina.
Arizona
Arizona’s multiyear phase of decreasing the corporate tax rate began in 2015 when it stood at 6.5%. Since then, it has dropped to 5.5% and this year finally dropped to 4.9% where it will stay for the time being.
In addition to corporate tax rates being dropped, Arizona has attempted for wide sales tax reform.
District of Columbia
The Federal Capital reduced the corporate tax rate this year from 9.2% to 9%. This is part of a larger plan that attempts to gradually reduce the tax rate annually to 8.25% in 2019. This is part of a giant tax reform that also aims to reduce income tax and introduce a new income tax bracket.
Indiana
For Indiana, the corporate tax rates will drop from 6.25% to 6%, but not immediately. The new changes will take place on the first of July. Since 2011, Indiana has reduced the corporate tax rate steadily from 8.5%. The end goal for the state is to get to 4.9% in 2021.
In other tax news, Indiana has been issuing widespread reforms over the past years which include individual income taxes, estate taxes, and personal property taxes.
New Mexico
New Mexico reduced their corporate tax rate from 6.6% to 6.2% this year in an effort that started in 2013, when it was 7.6%. The end goal for New Mexico is to reduce the tax rate to 5.9% next year. This reduction is part of an entire plan, which could be seen as controversial as it deals with a lot of factors, such as removing some corporate tax credits and capping film production tax credit.
North Carolina
North Carolina reduced their corporate tax rate from 4% to 3%. This gfradual reduction of this tax rate started in 2013 when it was the highest corporate tax rate of the south at 6.9%. The drops of the rate of the last 2 years were contingent on revenue.
Individual income rate has also reduced to 5.49% which is greatly reduced from 7.75% over the past years.
These 5 are just part of the 15 states that have reduced their corporate income tax rates since 2008, which seems to be part of a growing trend in state tax policy.
Kat Jennings, TaxConnections, CEO and Founder and Advisory Team provides three areas of services: 1) Internationally recognized, retained executive search services for multinational corporations, public accounting firms, and law firms; 2) Introductions of sellers to buyers of small and medium size accounting firms; and 3) Provide brand building and education services that support and prepare accounting firm owners to buy/sell an accounting practice. We focus on educating the journey to sell a practice and how to increase firm revenue prior to any sale. Our program ensures you start years prior to a sale by learning what is expected of you during the selling process, and introducing firm Partners to cross selling opportunities that are easy to implement and reduce your workload at the same time. We introduce you to value added connections to smartly grow revenue in your accounting practice.
Kat Jennings has been retained by organizations worldwide to locate tax professionals with highly specialized tax knowledge and expertise. She has a thorough understanding of the tax business community, with a proven record of stellar performances matching professionals with organizations. Bringing two parties together to work successfully is the art of understanding personalities, cultural fit, expectations by both parties, flexible or inflexible work environments, understanding what drives and motivates each party, and revolves around the personality and ethics of each executive team.
Kat is a widely recognized expert in high level, tax executive search, as well as connecting buyers and sellers of accounting firms. TaxConnections provides and educates small to medium size accounting firms owners and Partners how to prepare and sell their firms so they can build a succession plan for their retirement. With larger firms seeking to acquire smaller accounting practices, there is a real need to help firm owners prepare to be acquired. Most firm owners are unaware they are not ready to sell when they decide to retire. TaxConnections educates firm owners’ what they need to do years in advance of selling an accounting firm practice.
Senior tax executives expect the utmost privacy when being introduced to multinational organizations about a new tax opportunity under consideration. Having said that, companies searching for a new head of tax expecting tax executive candidates to submit their resume through a resume portal, will never see a full slate of outstanding tax executives available due to a candidates’ desire for greater privacy. This is why privacy focused Uber Tax Recruiters consistently outperform in-house recruiters on tax executive searches.
We offer our clients a Performance Retainer Agreement arrangement so their HR department can still recruit and compete with the tax candidates we present on Head of Tax searches. The client pays us a partial fee upfront, and if they find a candidate they deem better than we introduce to them, we forfeit the final fee. Most of the time, they love and prefer our private introductions to tax executive candidates better than what they source through their own resume portals.
When we represent selling/buying small to medium-sized firms, firm owners/partners also demand greater privacy when considering the sale of their practice. TaxConnections provides a safe place to discuss their business needs, elevate their practices’ online reputation, and increase revenue through new streams of business development by outsourcing work and partnering with other firms. Over three decades, we have worked tirelessly to build relationships between firm owners most organizations rarely have access to in the world of tax. There are numerous possibilities you may never have considered previously to bolster the value of your practice and service offerings.
As a globally recognized consultant to multinational organizations, accounting firms, and law firms searching for tax expertise, Kat has been retained by public accounting firms, law firms, and corporations worldwide including Apple Computer, AC Neilson, Accenture, Agilent Technologies, Allergan, Alza, American Express, American Media, Aon, Baker & McKenzie, Barclays Bank, Bechtel, Cargill, Carl Zieuss Vision, Century Aluminum, Chevron, Clorox, Citigroup, Commercials Metals, Constellation Energy, Countrywide, Del Monte, Deloitte Touche, DFS, DLA Piper, E&J Gallo Winery, Electronic Arts, Ernst &Young, Fox Entertainment, Fremont Investments, General Electric,General Motors, Herbalife, Hewlett Packard, Hyatt, Intel, Jones Lang LaSalle, Kimco Realty, KLA Tencor, Koch Industries, KPMG, Levi Strauss, Liberty Mutual, LKQ, Loews, Logitech, Lucas Film, Maersk, McKesson, Nalco, Newell Rubbermaid, Nissan, Oracle, Orbitax, Pacific Gas & Electric, PwC, QAD, SAIC, SanDisk, Sanmina, Sempra Energy, SONY, Synopsys, Ticketmaster, Trimble Navigation, Toyota, Univar, Wal-Mart, Wells Fargo, Vertex, Yahoo, Xilinx, and many more not listed here.
Contact Kat at 858,999.0053 Office/858.232.4415 Cell or kat@taxconnections.com to request a private consultation regarding the sale of your practice, adding top talent to your organization, or merging your practice with another firm owner with a book of business. The possibilities are endless; if you have a dream of a new vision for your professional life; we will scout opportunities throughout the market to make it happen.
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