*States which permit the deduction of Federal income taxes generally limit such deduction to taxes paid on that part of income subject to the state's income tax. 1 A minimum tax is imposed in the following states: CALIFORNIA ($100); CONNECTICUT ($30); MINNESOTA ($10); MONTANA ($10); OREGON ($10); UTAH ($10); and VERMONT ($25). 2 CONNECTICUT, MASSACHUSETTS, NEW YORK, RHODE ISLAND and UTAH; Taxpayers must use a specified alternative method of tax computation if it yields a greater tax. * IDAHO: Corporation net income tax applies only to corporations not subject to the 6% state corporation franchise tax. Each corporation filing a return pays an additional tax of $10. LOUISIANA: Tax is levied on net income in excess of a maximum credit of $3,000. 5 MARYLAND: Domestic corporations are allowed a credit for franchise tax payments in excess of $25. • WISCONSIN: Deduction of Federal income taxes limited to 10% of net income. Source: "State Tax Guide," Commerce Clearing House. DISTRICT OF COLUMBIA GOVERNMENT DEPARTMENT OF GENERAL ADMINISTRATION RATE COMPARISON OF MAJOR TAXES IN THE WASHINGTON Average effective tax rate of $1.49 per $100 of current market value. The actual tax rate is $2.90 per $100 of assessed valuation. 93-199-68- -5 Maryland: Montgomery County.- Average effective tax rate of $1.743 per $100 of current market value on residential property. Actual tax rates vary among the 77 taxing jurisdictions from $2.94 in rural areas to $4.14 in urbanized areas per $100 of assessed valuation. In addition to the basic state, county, and school rates amounting to $2.82 per $100 of assessed valuation, there are various special area taxes for fire, recreation, sanitary, metropolitan and regional purposes. Effective tax rates accordingly vary from $1.52 to $1.98 per $100 of market value. As applied to business properties where free parking facilities are provided, the actual tax rates include a special parking lot rate varying from 30 cents to 60 cents per $100 of assessed valuation. Town rates applicable in specific areas are excluded. Prince Georges County.- Average effective tax rate of $1.851 per $100 of current market value. Actual tax rates vary among some 12 taxing jurisdictions from $3.23 in rural areas to $3.59 in urbanized areas per $100 of assessed valuation. In addition to the basic state and county rates amounting to $3.07 per $100 of assessed valuation, there are various special area taxes for fire, park and planning, metropolitan and sanitary purposes. Effective tax rates accordingly vary from $1.72 to $1.91 per $100 of market value. Town rates applicable in specific areas are excluded. Virginia: Alexandria.-Average effective tax rate of $1.342 per $100 of current market value. The actual tax rate is $3.11 per $100 of assessed valuation. Arlington County.-Average effective tax rate of $1.2945 per $100 of current market value. The actual tax rate is $3.83 per $100 of assessed valuation. Fairfax County.-Average effective tax rate of $1.442 per $100 of current market value. Actual tax rate is $4.05 per $100 of assessed valuation. Town rates applicable in specific areas are excluded. Fairfax City.-Average effective tax rate of $1.525 per $100 of current market value. The actual tax rate is $3.48 per $100 of assessed valuation. Falls Church.-Average effective tax rate of $1.358 per $100 of current market value. The actual tax rate is $3.15 per $100 of assessed valuation. Effective and actual rate of $2.20 per $100 of current market value on tangible personal property used in business. Assessment level is at market value. Household property and motor vehicles not stock-in-trade of dealers are exempted. Maryland: Montgomery and Prince Georges Counties have instituted a plan to eliminate the county property tax on stock in business by December 31, 1970. This plan provides for an annual 10 percent increase in the exemption applied to average market value from the 50% applicable for 1966. This results in an assessment level of 40% of the fair average market value for the year ending December 31, 1967. Assessed values for other than county tax purposes are not subject to this provision. Montgomery County.-Average effective rate of $1.52 per $100 of current market value of tangible personal property used in business other than manufacturing equipment. Effective rates vary from $1.28 to $1.76 depending upon the location of the property. Actual rates vary from $2.94 to $4.14 per $100 of assessed valuation. Town rates applicable in specific areas are excluded. Prince Georges County.-Average effective rate of $1.47 per $100 of current market value of tangible personal property used in business other than manufacturing equipment. Effective rates vary from $1.39 to $1.54 depending upon the location of the property. Actual rates vary from $3.23 to $3.59 per $100 of assessed valuation. Town rates applicable in specific areas are excluded. Virginia: Alexandria. Actual rate of $4.10 per $100 of assessed valuation of automobiles and of all tangible personal property of business. The effective rate cannot be determined from the available information but is less than the actual rate. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. Arlington County.-Actual rate of $3.70 per $100 of assessed valuation of tangible personal property. The effective rate cannot be determined from the available information but is less than the actual rate. Motor vehicles must be listed separate ly and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. Fairfax County.-Actual rate of $4.05 per $100 of assessed valuation of automobiles and all business tangible personal property. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. Fairfax City. Actual rate of $4.00 per $100 of assessed valuation of automobiles and all business tangible personal property. The effective rate cannot be determined from the available information but is less than the actual rate. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. Falls Church. Actual rate of $4.00 per $100 of assessed valuation of automobiles and of all tangible personal property of business. The effective rate cannot be determined from the available information but is less than the actual rate. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. SALES AND GROSS RECEIPTS TAXES District of Columbia: General Sales and Use 3% on sale, lease or rental of tangible personal property and certain services. 1% on sales of food or consumption off the premises. 5% on rental of accommodations to transients. Reimbursement: Sales of food for consumption off the premises_ Maryland: 28¢ and over. 15¢ and over. 3% on sale, lease or rental of tangible personal property and certain services, including charges for rental of accommodations to transients but not including food for consumption off the premises. Reimbursement: Restaurant meals__ Other sales_ Virginia: $1.00 and over. 25¢ and over. 2% state rate effective September 1, 1966. Alexandria, Arlington, Fairfax City, Fairfax County, and Falls Church have also adopted the optional 1% local sales tax. Alexandria, Fairfax City, Fairfax County, and Falls Church impose a 10% tax on monthly utility bills. In Alexandria, the maximum monthly tax is 50 cents on gas and $1 on electricity for residential users. In Fairfax City, the maximum monthly tax is $10 except that the maximum monthly tax on gas is $5. In Falls Church, the maximum monthly tax is $5 except that the monthly maximum tax on gas for heating is 50 cents for residential users. Maximum monthly tax on utility bills in Fairfax County is $1.00 per utility. 15¢ per gallon on wines containing 14% or less by volume of alcohol. 33 per gallon on other wines containing more than 14% alcohol. 45¢ per gallon on champagne, sparkling wines and wines artificially carbonated. $1.75 per gallon on spirits and alcohol. Maryland: 20¢ per gallon on all wines. $1.50 per gallon on spirits. Virginia: Wine sold by the Alcoholic Beverage Control Board to retailers or wholesalers is taxed at the rate of 35¢ per gallon in addition to any markup charged by the Board. Spirits and alcohol sold by the Alcoholic Beverage Control Board to consumers is taxed at the rate of 10% of the price charged in addition to any markup charged by the Board. 2.5¢ per package of 20 cigarettes (Effective September 1, 1966). District of Columbia: Recordation and Realty Transfer Deeds at the rate of one-half of 1% of the fair market value of the property (minimum tax-$1.00). Maryland: Montgomery County.-Deeds and deeds of trust on real property at the rate of $1.10 per $500 of consideration. If deed and deed of trust are recorded at the same time, the tax is measured by the full consideration of the deed alone. In addition, county realty transfer tax at the rate of 1% of the full consideration on unimproved land, one-fourth of 1% on improved property valued at $20,000 to $50,000 and one-half of 1% on improved property valued at more than $50,000. Prince Georges County.-Deeds and deeds of trust on real property at the rate of .04% of the consideration. If deed and deed of trust are recorded at the same time, the tax is measured by the full consideration of the deed alone. Virginia: Deeds and deeds of trust on real property at the combined state and local rate of 20¢ per $100 of consideration. District of Columbia: 7¢ per gallon. Maryland: Motor Vehicle Fuel Taxes 76 per gallon. Trucks with three or more axles and buses must purchase fuel or pay an equivalent tax amount for mileage operated in the state. District registered vehicles are exempt from this provision by reciprocal agreement. Virginia: 7¢ per gallon (plus 24 surtax on property carriers). Trucks with three or more axles and buses must purchase fuel or pay an equivalent tax amount for mileage operated in the state. Motor Vehicle and Trailer Excise District of Columbia: 3% of the fair market value. Maryland: 3% of the fair market value. Virginia: 2% of the fair market value (Effective September 1, 1966). District of Columbia: 2% on net premium receipts. Maryland: Insurance 2% on all new and renewable gross premiums allocable to Maryland with deductions allowed for returned premiums, dividends paid to policy holders, and refunds made to policy holders, except 1% rate on consideration paid for annuities. Domestic insurance companies are allowed a credit for franchise taxes paid. Life insurance companies having a home office in Maryland are allowed a credit for fees paid the Insurance Commissioners not exceeding 15% of the tax, in addition to credit for franchise taxes paid. Foreign insurance companies subject to retaliatory taxation if rates in home state are higher than those in Maryland. Virginia: 1% to 23% on gross premiums derived from business in Virginia without deduction for dividends or any other deduction except premiums returned on canceled or reduced policies depending upon type of insurance. Life insurance companies 24% (24% on premiums paid for special benefits), domestic mutual companies 1%, industrial sick benefit companies 1%, workmen's compensation 21⁄2%, and all other companies 24%. Foreign insurance companies subject to retaliatory taxation if rates in home state are higher than those in Virginia. District of Columbia: Gross Earnings (Banks, Financial Companies) 4% on gross earnings of banks. Interest paid to depositors is deducted in determining earnings subject to tax. 2% on gross earnings of building and loan associations. Dividends paid to depositors are not deducted in determining earnings subject to tax. Maryland: None as such. Share tax on shares of stock in state and national banks, trust companies and financial institutions. The rate is the aggregate of all lawful levies for state purposes plus $1.00 per $100 of the value of the shares for county and/or city taxation. Virginia: None as such. Shareholders taxed on shares in any incorporated bank, banking association or trust company, organized under the laws of Virginia or the United States, doing business in Virginia. The state rate is ten mills per $1.00 of valuation of the stock. City banks may be subject to city or town rates not in excess of 40% of the state rate. Town and county banks may be subject to town rates not in excess of 80% of the state rate. The municipal tax may be credited against the state tax. District of Columbia: Gross Receipts (Electric, Gas, and Telephone Companies) 4% on gross receipts of electric, gas, and telephone companies. Maryland: 2% franchise tax measured by gross receipts on electric, gas, and telephone companies. Virginia: 1%% up to $100,000 of gross receipts and 32% on the excess over $100,000 of gross receipts of gas and electric companies. Telephone companies pay a tax graduated from 16% to 3% based on gross business and miles of line in the state. Special taxes of 10 of 1% on gross receipts of telephone, gas, and electric companies are imposed for the expense incurred by the state in making appraisals and valuations. In addition, local business privilege taxes based on gross receipts are levied on utilities. District of Columbia: INCOME TAXES-Individual 22% on first $2,000 of net taxable income. 3% on next $2,000 of net taxable income. 32% on next $2,000 of net taxable income. 4% on next $2,000 of net taxable income. 42% on next $2,000 of net taxable income. 5% on amounts in excess of $10,000. |