NEW YORK, November 10, 2021 / PRNewswire / – Ernst & Young LLP (EY US) today announced that, according to its study prepared for the Council On State Taxation (COST) and its affiliate, the State Tax Research Institute (STRI), companies have paid more $ 839 billion national and local taxes in fiscal year 2020, an increase of 0.5% over fiscal year 2019. State business taxes decreased by 1.9% and local business taxes increased by 3 , 1%. The report, titled “Total State and Local Business Taxes: State-by-State Estimates for Fiscal Year 2020,” also shows that in 2020, corporate tax revenues accounted for 44.3% of all state and local tax revenues. .
The study provides estimates of national and local business taxes that reflect the tax collections of July 2019 through june 2020 covering a period with the last quarter reflecting the economic effects of COVID-19 closures beginning in mid-March. The data presented in this study is for each state’s fiscal year, which differs by state.
“The pandemic has wreaked havoc on American households and just about every aspect of private and public sector business operations, creating a historic disruption in the ability of state and local communities to collect taxes.” , said the President and Executive Director of COST, Douglas lindholm. “However, state and local governments have reported a slight increase in tax revenue, a number we may see increase when the final numbers are counted in next year’s report.”
“COVID-19 lockdowns have triggered many tax reporting extensions,” said Andrew Phillips, Practice Director of Economics and Quantitative Statistics (QUEST) at Ernst & Young LLP. âIn fact, 43 states have deferred personal, corporate, or general sales tax payments until 2021. We expect that much of this lost revenue will be recouped by states when delayed filing payments are overdue. collected. “
The other main conclusions of the study are as follows:
- Total property taxes $ 329.2 billion and remain the largest national and local tax paid by businesses. Property taxes accounted for 39.2% of total local and state business taxes and 76.5% of local business taxes.
- General sales taxes on business inputs and capital investments totaled $ 180.1 billion, or 21.5% of national and local business taxes.
- Taxes on state and local corporations totaled $ 71.7 billion, or 8.5% of all state and local trade taxes.
- Personal income taxes on business income aggregated $ 50.4 billion, or 6% of the total local and national taxes on companies.
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