State & Local Tax
Our experts continuously monitor the evolution of state and local tax changes to uncover opportunities to help our clients minimize their tax burdens.
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Uncover opportunities to minimize state and local taxes
Minimizing taxes is a way of increasing cash flow. It’s an easy axiom to understand, but a hard one to execute especially when it comes to state and local taxes. Legislative, regulatory, and precedent-setting developments in tax are complex and always evolving. Staying on top of all of these state and local tax changes can be very time consuming. That is why so many organizations turn to our tax experts who continuously monitor the evolution of state and local tax rules.
Entity structuring can help save taxes
Realigning entity structure meant tax savings for a corporation with three transportation and three logistics subsidiaries. Each was a C corporation and had multistate operations with varying profit and loss positions. We recommended that they reorganize the C corporation subsidiaries into single-member limited liability companies, which permitted combining the two separate lines of business into groups that were able to combine results and reduce state income taxes by 25 percent.
Keeping up with the changes in tax laws is worth the effort
Part of minimizing taxes is staying up to date with changes in state and local tax laws. To save money, a manufacturer decided to handle its own taxes and was paying sales tax based on a process established more than a decade ago. The company had grown, the laws had changed, and the process did not keep up. Using proven analytical procedures, we discovered the company was overpaying its state sales tax obligations and obtained a $160,000 refund. As an added bonus, our state and local tax experts also discovered the opportunity for a $50,000 refund for unclaimed tax credits.
Tax credits and incentives often spell r-e-l-i-e-f
If you are planning an expansion, relocation, or merger and acquisition, we can help you determine which tax credits, exemptions, and abatements and which financing and infrastructure assistance services are available to you. For example, we know that when you spend money improving the skills of your employees, you can apply for training tax credits. We recently helped a discount drug store chain claim $100,000 in tax credits for its training program.
Minimizing your state and local taxes makes sense. Plante and Moran tax experts can help you do it.
Our state and local tax offerings include:
