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┌───────────────────────────────────────┐
│ UPDATE INFORMATION--CHANGES IN RECENT │
│ QUARTERLY RELEASES OF THIS PROGRAM: │
│ │
│ (Numbers in brackets indicate YEAR/QTR│
│ when update or new feature was added)│
└───────────────────────────────────────┘
HIGHLIGHTS OF FEDERAL DEVELOPMENTS IN THIS RELEASE:
───────────────────────────────────────────────────
. IRS ANNOUNCES NEW STANDARD MILEAGE ALLOWANCE FOR 1996.
In 1996, you may deduct business mileage at the rate of
31 cents a mile, if you use the optional standard mileage
rate, instead of depreciation and actual automobile
operating expenses. The rate for 1995 was 30 cents per
mile. The rate for rural mail carriers increased to 46.5
cents per mile, from 45 cents in 1995. [96/1]
. COURT INVALIDATES EXECUTIVE ORDER IMPOSING STRIKER RE-
PLACEMENT BAN. On February 2, 1996, the U.S. Court of
Appeals invalidated an Executive Order that had been
issued by President Clinton in 1995, which had imposed
a ban on the hiring of replacement workers during
strikes by government contractors, after attempts to
pass such a ban in Congress had twice failed, in 1993
and 1994. [96/1]
. LUXURY TAX ON AUTOS -- THRESHOLD INCREASED FOR 1996. The
10% excise on automobiles will only apply to the portion
of the purchase price in excess of $34,000 in 1996 (vs.
$32,000 last year). [96/1]
. IRS FINALLY INCREASES AMOUNT OF UNSUBSTANTIATED T&E
EXPENDITURES TO $75. Effective after September 30, 1995,
the IRS has amended its regulations so that amounts spent
for lodging, meals, entertainment, gifts, or so-called
"listed property" in amounts under a $75 threshold need
not be evidenced by documentary evidence (such as receipts
or invoices). For several decades, this threshold amount
had been set at $25 for such items, until this recent
action by the IRS, announced in Notice 95-50, IRB 1995-42.
[96/1]
. IRS EXCLUSION FOR EMPLOYER PROVIDED TRANSPORTATION
FRINGE BENIFITS INFLATION INDEXING ANNOUNCED FOR 1996.
The amounts allowed as tax-free "qualified transportion
fringes" are increased from $160 to $165 for qualified
free parking, and from $60 to $65 for transit passes,
in 1996. [96/1]
. NEW 1996 TAX CALCULATION MODULE NOW INCLUDED. Our new
1996 tax planning module, fully updated for 1996 tax
rates and brackets and for tax law changes (as known as
of January 1, 1996) and our updated module for 1995, are
both included with this release of the program.
[96/1]
. UPDATED FOR 1996 INDIVIDUAL TAX RATE BRACKET CHANGES.
The IRS has announced 1996 tax brackets, as indexed
for inflation, for the individual income tax. These
are now reflected in the text, throughout the program.
[95/4]
. UPDATED FOR 1996 PENSION PLAN LIMITS INDEXING. Release
95.4 and subsequent releases have been updated to re-
flect IRS indexing of various dollar limits applicable
to employee pension benefit plans for 1996, such as the
increase in the maximum deferral allowed per employee
for a 401K plan, from $9,240 in 1995 to $9,500 in 1996.
[95/4]
. UPDATED FOR INCREASE IN FICA AND SELF-EMPLOYMENT TAX
WAGE BASE IN 1996. The program has been updated
throughout to reflect the 1996 inflation-adjusted
amounts of income subject to the full rate (15.3%)
of FICA or Self-employment tax, which was increased
from $61,200 in 1995 to $62,700 in 1996. Amounts
in excess of $62,700 are subject only to the 2.9%
Medicare portion of the social security taxes. [95/4]
. OTHER WITHHELD TAXES NO LONGER REPORTED ON FORM 941.
Taxpayers required to withhold certain taxes other
that wage withholding and FICA (such as "backup
withholding on interest or dividends) will now report
such withholdings on new IRS Form 945. However,
these rules were recently liberalized, so that a
taxpayer only has to file Form 945 in years when
taxes have been withheld that must be reported on
the Form 945. Previously, a taxpayer was required
to continue filing the form every calendar year after
the initial year it was filed, even if no taxes were
withheld for such year. [95/4]
. IRS CHANGES PASSIVE LOSS REGULATIONS ON LEASES OF
PROPERTY TO A CONTROLLED COMPANY. New IRS tax
regulations will treat the net income on property
that you lease to your business as active income,
not "net passive income" that you can use to offset
net passive losses on other passive activities.
See the "PASSIVE ACTIVITY LOSS" item on the INDX
listing under the Main Menu, for further details on
this latest IRS "Catch-22" rule. [95/3]
. EFT PAYMENTS NOW REQUIRED FOR SOME PAYROLL TAXES.
Beginning in 1995, about 800 large employers in the
U.S. were required to make payroll tax payments of
withheld income taxes and FICA tax to the IRS by
means of electronic funds transfers (EFT). This
requirement will be expanded to include all but
the smallest employers by 1999. [95/3]
. NEW VETERANS RE-EMPLOYMENT RIGHTS ACT. Effective as
of October, 1994, the Uniformed Services Employment
and Veterans Reemployment Rights Act of 1994 (USERRA)
has gone into effect, imposing new requirements on
employers of anyone who serves in the reserves or
other uniformed services. Coverage of this important
new employer obligation is now covered in this
program. [95/2]
. "CONTRACT WITH AMERICA TAX RELIEF ACT OF 1995" APPROVED
BY HOUSE WAYS & MEANS COMMITTEE. On March 14, 1995,
the Ways & Means Committee of the United States House of
Representatives approved a number of major tax cut pro-
visions promised in the Republican Party's "Contract
with America." Full House (and Senate) approval was
pending as we released this update. For details on the
proposed new tax legislation, use the "INDX" menu selec-
tion on the Main Menu and look up the "CONTRACT WITH
AMERICA--TAXES" item. (Or use the "KEY" menu selection
and enter "CONTRACT WITH AMERICA" as the phrase to be
searched for.) [95/2]
. SELF-EMPLOYED TAXPAYERS' DEDUCTION FOR A PORTION OF
MEDICAL INSURANCE PREMIUMS PAID EXTENDED, EXPANDED.
The 25% deduction of medical insurance premiums that
was allowed for self-employed individuals expired
12-31-93. Finally, in April, 1995, just before the
filing date for 1994 tax returns, Congress retro-
actively extended this deduction to 1994, and in-
creased it to 30% in 1995. Note that the 1995 tax
planning/tax calculation module included with this
program reflects this legislation and the 30% deduc-
tion percentage for 1995. [95/2]
. HOUSE BILL WOULD RESTORE EXPIRED EDUCATIONAL ASSISTANCE
EXCLUSION. The exclusion from employee income of cer-
tain employer-provided educational assistance expired
at the end of 1994 and has not yet been reinstated.
However, House Bill HR 127, introduced by Rep. Sander
Levin (D-Mich.), the Employee Educational Assistance
Act of 1995 will, if enacted, restore the exclusion
and make it permanent. [95/2]
. IRS PROPOSED REGULATIONS MAY ALLOW EARNINGS OF SOME
MEMBERS OF A LIMITED LIABILITY COMPANY TO ESCAPE
SELF-EMPLOYMENT TAX. If new a Proposed Regulation
of the IRS goes into effect, members of a limited
liability company ("LLC") who are not among the des-
ignated managers of the LLC may be treated as limited
partners for self-employment tax purposes, if certain
conditions are met. In that case, like limited part-
ners in a limited partnership, they will not be sub-
ject to federal self-employment tax on their share of
the LLC's earnings. NOTE: This rule won't go into
effect till the tax year AFTER the Proposed Regulation
becomes final, however. For details on how this rule
may apply to an LLC, see the Self-Employment Tax
item in this program's index ("INDX" menu item), or
on the TAX Info Submenu ("S/E" menu item). [95/2]
. FINAL FAMILY AND MEDICAL LEAVE ACT REGULATIONS NOW
IN EFFECT. The final regulations under the federal
Family and Medical Leave Act of 1993 went into effect
on April 6, 1995. We have updated the program to
reflect the final regulations. [95/2]
. IRS RULES THAT AN LLC MAY BE CONVERTED, TAX-FREE, TO
A LIMITED LIABILITY COMPANY. In Rev. Rul. 95-37, the
Internal Revenue Service recently ruled that existing
partnerships may generally be converted into limited
liability companies ("LLCs") without taxable gain or
loss being recognized (generally) to any of the part-
ners, provided that the LLC qualifies for partnership
tax treatment, for income tax purposes. The Revenue
Ruling further states that it is not even necessary
to file a short-period tax return for the partnership,
or to obtain a new Employer I.D. number, since the LLC
is, in effect, treated as a continuation of the old
partnership entity. [95/2]
. BILL INTRODUCED IN CONGRESS TO ALLOW STATES TO FORCE
OUT-OF-STATE SELLERS TO COLLECT USE TAX. A bill has
been introduced in the Senate by Sen. Dale Bumpers of
Arkansas, which would authorized states to require
out-of-state sellers, such as mail order companies,
to collect sales or use tax on sales of tangible
property shipped into a state, at a single uniform
state wide rate (even if the state has varying local
rates) for each state. Certain small sellers would
be exempt, if unless they have either $3 million of
total sales of such items or $100,000 of such sales
in the particular state, in the 12 months ending in
September of the preceding calendar year. Couched
as a "tax fairness" bill to "help main street
businesses" who compete against out-of-state mail
order firms that are not currently required to
collect use tax or sales tax from in-state buyers,
the proposed legislation may have a good chance of
passing, particular since it is sponsored by
President Clinton's Democratic colleague from
Arkansas, a powerful member of the Senate. We
will keep you advised of the status of the proposed
legislation in future updates of this program. [95/2]
. AUTO MILEAGE DEDUCTION INCREASED FOR 1995. The flat
per-mile deduction for business auto use has been in-
creased from 29 cents to 30 cents, effective January
1, 1995. [95/1]
. ADA DEFINITION OF "DISABILITY": NEW EEOC INTERNAL
GUIDELINES SHED LIGHT ON WHAT IT MEANS. See the
information in this program on the Americans with
Disabilities Act ("ADA"), for an analysis of what
the law means by "disability," as discussed in a
new 56-page internal manual created by the EEOC
for its own personnel, to be used in interpreting
and enforcing the ADA. [95/1]
. CLINTON ADMINISTRATION PROPOSING EXTENSION OF THE
ENVIRONMENTAL TAX ON CORPORATIONS. The current admin-
istration is proposing an extension, at least to the
year 2000, of the federal environmental tax (of 0.12%
on alternative taxable income of a corporation in ex-
cess of $2 million), which is due to expire after
1995. [95/1]
. PRESIDENT SIDESTEPS CONGRESS, ISSUES EXECUTIVE ORDER
BANNING STRIKER REPLACEMENTS. Organized labor has
failed on several attempts in recent years (under
Democratically-controlled Congresses) to get a law
enacted that would prohibit companies from hiring
replacement workers ("scabs") during strikes. Now
(in March, 1995), President Clinton has attempted an
end-run around a GOP-controlled Congress, by issuing
an Executive Order that bans of hiring striker re-
placements by federal contractors. [95/1]
. UPDATED/ADDED INFORMATION ON EXPORTING TO MEXICO
UNDER NAFTA. On January 1, 1994, the 3-way NAFTA
free trade agreement between Canada, Mexico, and the
U.S. went into effect. The effect on trade between
the U.S. and Mexico has been spectacular. In the
first 6 months after going into effect, Mexico has
moved ahead of Japan as the second largest market
for U.S. exports, second only to Canada. [95/1]
HIGHLIGHTS OF RECENT STATE LAW CHANGES:
───────────────────────────────────────
. STATE UNEMPLOYMENT TAX COVERAGE EXPANDED. Expanded
coverage of unemployment tax rates, wage bases, and
other information has been added for all states in
this release. [95/3]
. REDUCING STATE UNEMPLOYMENT TAX THROUGH VOLUNTARY
CONTRIBUTIONS. Coverage has been added of provisions
in 23 states that allow employers to reduce their
unemployment tax rate by making a voluntary contribu-
tion of tax to their account. [96/1]
. STATE FAMILY LEAVE LAWS. Coverage has been expanded
to include family leave legislation in all 50 states
and the District of Columbia, in addition to coverage
of the federal Family and Medical Leave Act. [94/4]
. ALABAMA ENACTS TOUGHEST LAW IN THE NATION FOR FOREIGN
CORPORATIONS THAT FAIL TO QUALIFY. During its 1995
Regular Session, the state legislature enacted an
amendment to the Alabama Business Corporation Act,
which holds that any contracts entered into prior to
the date the corporation "qualified" (registered with
the state) to do business are VOID. Former law con-
tained a similar provision, like those in many other
states, but allowed a corporation to cure the defect
after the fact, by qualifying to do business in Alabama.
However, the new Alabama law is unique, in that it pro-
vides no such mechanism to reinstate the validity of con-
tracts an out-of-state corporation entered into in the
state prior to qualifying. Beware, if your corporation
is doing business in Alabama -- failure to qualify on a
timely basis could have disastrous repercussions on
your business. (This new provision does not appear
to be an oversight: Section 1 of the Act declares that
the legislature intended the Act "for the protection
of [Alabama] citizens from fraudulent and overreaching
practices by foreign corporations....) [95/3]
. ARIZONA ENACTS FURTHER TAX RELIEF IN 1995. The state
has reduced personal income tax rates across the board,
with the top bracket rate reduced from 6.9% in 1994 to
5.6% in 1995 and subsequent years. [95/2]
. CALIFORNIA REDUCES, RAISES CERTAIN FILING FEES. The
state of California has reduced the qualification
filing fee for a foreign corporation from $350 to
$100, and has reduced the fee for filing articles of
organization for a limited liability company (LLC)
from $80 to $70. However, tha annual report filing
fee for domestic and foreign corporations and LLCs is
now increased from $5 to $10 a year. [96/1]
. CALIFORNIA ANNOUNCES NEW SDI RATE FOR 1996. The rate
of tax to be withheld from employee wages for State
Disability Insurance drops from 1.0% in 1995 to 0.8%
in 1996, still computed on the first $31,767 of an
employee's wages only. [95/4]
. SMALL CALIFORNIA EMPLOYERS CAN PROVIDE PAYROLL TAX
INFORMATION BY PHONE IN 1996. Starting in April of
1996, the E.D.D. will allow California employers
with 1-4 employees to provide payroll tax information
by telephone, instead of filing a quarterly DE-6 wage
report. [95/4]
. INCOME TAX FILING BY TELEPHONE. Starting with the
1996 tax filing season, certain individual California
taxpayers who file Form 540EZ returns will be permit-
ted to file their tax returns by telephone. [95/4]
. CALIFORNIA -- California has adopted a Limited Liabil-
ity Partnership (LLP) law, allowing certain types of
professional services firms to operate as LLPs. In
general, professionals are not allowed to operate as
LLCs in California. Under the new LLP law, only cer-
tain law and accounting firms will be allowed to set
up LLPs under California law. Firms that qualify
must file Form LLP-1 with the Secretary of State.
[95/4]
. CALIFORNIA -- California Franchise Tax Board released
(9/95) the 1995 indexed tax brackets for the California
personal income tax. The 1995 tax brackets are now
reflected in this release of this program. 1996 tax
brackets will not be announced by the FTB until late
1996. [95/4]
. CALIFORNIA -- LOCAL SALES TAX CHANGES. The Santa Clara
County sales tax rate dropped from a total of 8.25% to
7.75% on April 1, 1995, and a replacement sales tax is
not being implemented until a court decides its valid-
ity. Meanwhile, Clear Lake City has adopted a citywide
sales tax increase of 0.5% for public safety purposes,
and Tulare County has increased its total tax rate from
7.25% to 7.75%, effective 10-1-95. In addition, the
court-mandated reductions of the local sales tax rates
in San Diego (to 7%) and Monterrey (to 6.5%) Counties
will expire on 4-1-96, at which time the tax rate in
both those counties will increase by 0.75%. [95/3]
. CALIFORNIA -- S.D.I. RATE DROPS. For 1995, the S.D.I.
withholding tax on wages is reduced to 1.0%, from 1.3%
in 1994. It still applies to the first $31,767 of wages
per employee. [95/2]
. CALIFORNIA EMPLOYER WITHHOLDING RULES REVISED FOR 1995.
Once again, withholding requirements for employers in
California have been significantly revised, for calendar
year 1995. [95/1]
. CALIFORNIA -- SMOKE-FREE WORKPLACE RULES. Effective as
of January 1, 1995, new state law went into effect, regu-
lating smoking in the workplace. [95/1]
. CALIFORNIA -- NEW DIESEL FUEL TAX. Effective as of July
1, 1995, the state has imposed an 18 cent per gallon
excise tax on diesel fuel. [94/4]
. CALIFORNIA -- LEGISLATURE PASSES LLC LAW. California's
Legislature has finally enacted a Limited Liability
Company Law, which went into effect in October, 1994.
[94/4]
. CONNECTICUT SALES TAX. Connecticut motor fuel tax
rates were increased from 31 cents to 32 cents on
1-1-95, 33 cents on 7-1-95, and to 34 cents a gallon
on 1-1-96. [95/3]
. DELAWARE LOWERS PERSONAL INCOME TAX RATE. Beginning
in tax years after December 31, 1995, the top personal
income tax rate in Delaware will be reduced to 7.1%.
[95/3]
. DISTRICT OF COLUMBIA REPEALS ANNUAL REPORT REQUIREMENT.
In the future, domestic and foreign corporations will
only be required to file reports every 5 years, on the
15th of April every 5th year after the date of incorp-
oration or admission to do business in the District,
effective after 9-8-95. The annual fee remains $100
a year, but payment will now be in the form of one
$500 payment every five years. [96/1]
. IOWA EXPANDS DEDUCTION FOR HEALTH INSURANCE. Begin-
ning with the 1996 tax year, Iowa will permit individ-
uals to deduct 100% of the premiums paid for health
insurance coverage in computing Iowa taxable income,
regardless of whether federal law at the time permits
a 25% (or other) deduction of such premiums for self-
employed persons. Also, the Iowa deduction is allowed
for any individual taxpayer, including a wage earner,
and not just for self-employed individuals, unlike the
federal provision. [95/2]
. LOUISIANA DEPT. OF REVENUE WILL NOT ENFORCE NEW SALES
TAX ON MAIL ORDER FIRMS. The state Department of
Revenue has announced it will not attempt to enforce
the new 4% additional sales tax on out of state mail
order vendors, until federal law is enacted that per-
mits such state legislation. [95/1]
. MICHIGAN PHASING OUT INTANGIBLES TAX. Michigan has
repealed its tax on intangible property, effective
as of 1998. It will be phased out gradually over
the years 1994-1997. [95/2]
. MICHIGAN SINGLE BUSINESS TAX. Updated discussion and
analysis of Single Business Tax, including recent
cut in tax rate from 2.35% to 2.3%. [94/4]
. MISSISSIPPI REPEALS BULK SALE LAW. A majority of
states, including Mississippi, have repealed their
bulk sale (or "bulk transfer") laws since 1988. The
repeal of the Mississippi law became effective on
July 1, 1995. [94/4]
. MONTANA 1995 TAX BRACKET INDEXING ANNOUNCED. Updated
discussion of Montana taxes now reflects indexed 1995
personal income tax brackets in Montana, which are
announced for each year near the end of the year. [95/4]
. NEBRASKA GAS AND SPECIAL FUELS TAX REDUCED. For the
third quarter of 1995, the motor and special fuels
tax rate is raised to 25.7 cents (formerly 24 cents)
per gallon. [95/3]
. NEW JERSEY TAX CUTS ENACTED. Effective as of January
1, 1996, the maximum individual income tax rate in
New Jersey is reduced from to 6.37%. The top rate
of 7% before 1994 was reduced in stages in 1994 and
1995. In addition, the tax rate on income of C corp-
orations with $100,000 or less of net income will be
reduced from 9% to 7.5%, effective July 1, 1996. [95/3]
. NEW MEXICO REVISES CORPORATE ESTIMATED TAX SAFETY ZONE.
Effective for tax years beginning in or after 1996,
corporations subject to New Mexico taxation can base
their estimated income tax payments on the higher of
their previous year's tax liability or $5,000. [95/2]
. NEW MEXICO REDUCES GAS TAX RATE TEMPORARILY. The state
excise tax on gasoline and certain special fuels,
previous 20 cents a gallon, is reduced to 17 cents
a gallon as of July 1, 1995. The rate will drop to 16
cents on July 1, 2003 (or earlier, if certain funding
levels are attained earlier for highway debentures).
[95/3]
. NEW MEXICO WAGE BASE FOR UNEMPLOYMENT TAX INCREASED.
The amount of an individual employee's wages subject
to state unemployment tax has increased to $13,500 in
1995, up from $13,100 in 1994. [95/1]
. NEW MEXICO TAX ON CONTROLLED SUBSTANCES REPEALED. As
of July 1, 1995, the controlled substances tax on
marijuana and other substances is repealed. [95/3]
. NATURAL GAS AND CRUDE OIL PRODUCTION INCENTIVE ACT.
Effective June 17, 1995, New Mexico has enacted the
Natural Gas and Crude Oil Production Incentive Act,
which exempts from oil and gas severance taxes any
natural gas, oil, or other liquid hydrocarbons that
are severed and sold from a "production restoration
project" during the first 10 years after restora-
tion of production, if the annual average price of
west Texas intermediate crude oil is less than $24
per barrel. A "production restoration project" is
one that returns to production an oil or gas well
that had 30 days or less of production in 1993 and
1994, as approved and certified by the Oil Conserva-
tion Division. [95/3]
. NORTH CAROLINA MOTOR FUEL TAX RATE DECREASES. For the
second half of 1995, the tax rate on gasoline and other
motor fuels is reduced from 21.7 cents to 21.6 cents per
gallon. [95/3]
. NORTH DAKOTA ADOPTS NEW INCOME TAX RULES FOR S CORP-
ORATIONS AND PARTNERSHIPS. New legislation, effective
for tax years starting after December 31, 1994, allows
S corporations and partnerships doing business in the
state to file "composite" tax returns for their indi-
vidual nonresident shareholders and partners, in lieu
of their each having to file an individual North Dakota
income tax return. The tax that must be paid with such
composite returns is to be computed by multiplying the
North Dakota taxable income by the highest current
federal individual tax rate, which is then to be mul-
tiplied by the 14% North Dakota individual short form
tax rate. Rules for filing such returns are to be
prescribed by the North Dakota Tax Commissioner. [95/2]
. OHIO GASOLINE TAX RATE TO REMAIN UNCHANGED FOR FISCAL
YEAR ENDING 6/30/96. The state's motor fuel tax will
remain at the previous level of 22 cents per gallon
for the fiscal year July 1, 1995 through June 30, 1996.
[95/3]
. PENNSYLVANIA ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective as of February 5, 1995, Pennsylvania law
authorizes the formation of Pennsylvania "limited
liability companies," which are neither corporations
nor partnerships. [94/4]
. PENNSYLVANIA CUTS CORPORATE INCOME TAX RATES. Corpor-
ate tax rates in Pennsylvania, previously 12.25%, have
been reduced to 9.99, starting in 1995. The state
inheritance tax on spousal transfers has also been el-
iminated, for deaths occurring on or after January 1,
1995. [95/3]
. RHODE ISLAND GASOLINE TAX UNCHANGED IN 4TH QUARTER
OF 1995. The Rhode Island gasoline tax, which is set
quarterly, will remain at 28 cents per gallon for the
last quarter of 1995. [95/3]
. SOUTH DAKOTA INCREASES CERTAIN SALES TAXES. An addi-
tional tax of 1% is imposed by South Dakota on lodgings,
passenger car rentals, amusement parks, amusement and
recreation services, and marinas. Also the rate for
the alternative contractors' excise tax is increased
to 2% from 1.5%, and numerous sales and use tax exemp-
tions were repealed, effective 7-1-95. [95/3]
. VERMONT SALES TAX 5% RATE EXTENDED ANOTHER YEAR. The
Vermont sales tax, which dropped back to 4% on July
1, 1993, was temporarily increased to 5% again, until
July 1, 1995, at which time it was due to drop back to
4%. However, the 5% rate has now been extended for
another year, through 6-30-96 [95/3]
. VERMONT MINIMUM WAGE INCREASES. The Vermont minimum
wage is slated to increase from $4.25 an hour to $4.50
an hour on January 2, 1995 and to $4.75 an hour on
January 2, 1996. [95/1]
. VERMONT TAX WITHHOLDING ON PURCHASES OF REALTY FROM
NONRESIDENTS. Coverage expanded to include your
withholding tax requirements if you buy Vermont real
estate from a nonresident person. [95/1]
. WASHINGTON SALES TAX EXEMPTION ENACTED FOR MANUFACTURING
EQUIPMENT. Effective 7-1-95, Washington has enacted a
sales and use tax exemption for most manufacturing ma-
chinery and equipment purchased for use within the state,
as an incentive to manufacturers. [95/3]
. WASHINGTON B & O TAX ON INSURANCE AGENTS AND INSURANCE
BROKERS REDUCED. Effective July 1, 1995, the Business
& Occupations Tax on insurance agents, brokers, and
solicitors was reduced to 0.55% plus a surtax equal to
4.5% of the base rate, or a total rate of 0.575%. The
surtax is due to expire after June 30, 1997. [95/3]
. WISCONSIN GASOLINE TAX RISES. The Wisconsin gasoline
tax increased from 23.1 cents to 23.4 cents per gallon,
effective April 1, 1995. [95/1]
. WYOMING EXTENDS EXTRA 1% SALES TAX FOR 2 MORE YEARS.
The 4% state sales tax, scheduled to revert to 3% on
July 1, 1996, has now been extended until July 1, 1998.
However, if the state makes a determination that it has
met certain specified budget goals before that date,
the tax will drop to 3.5% on the July 1 after the
Governor certifies that such a determination has been
made. [95/2]
OTHER CHANGES AND ADDITIONS IN RECENT QUARTERLY RELEASES:
────────────────────────────────────────────────────────
. NEW SEGMENT ADDED ON TAKING DEDUCTIONS FOR A PC IN
YOUR HOME. This new item guides you through the IRS
requirements for deducting a home computer used for
business-related purposes in your home, or in your
home office. [96/1]
. NEW SEGMENT ADDED ON SELECTING PROFESSIONAL ADVISERS.
This new text segment (see various items for Attorneys,
Accountants, Benefit Consultants, etc. in index) pro-
vides helpful tips on how to go about finding and how
to use various professional advisers, as well as
where to find free or inexpensive sources of help and
information through SBA offices, SCORE and SBDC's,
among others. [95/1]
. TELEPHONE HOTLINES. Updated various telephone numbers
of government agencies, many of which have changed or
been disconnected in recent months. Also added
Justice Department information line number for in-
formation on the Americans with Disabilities Act.
A number of key addresses of Internet sites have also
been added. [95/4]
. SHOULD YOU HIRE EMPLOYEES? A new feature, which will
suggest a few things you need to consider before you
hire your first employee. See the INDX menu selection
on the Main Menu, for this item. Look up the item,
"HIRING EMPLOYEES" that appears in the topic index.
[95/2]
@IF990xx] . BUILT-IN ORDER FORM. In addition, we have built in a
@IF990xx] feature that now allows you to print out the order
@IF990xx] form to send to us (with $$ enclosed), if you want to
@IF990xx] order an update or program upgrade, or the companion
@IF990xx] book that we sell here and in bookstores, STARTING &
@IF990xx] OPERATING A BUSINESS IN @STATE.
─────────────────────────────────────────────────────────────
NOTE: Things change....Rapidly.
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The above are changes made in the last 4 quarterly updates,
not including earlier revisions. Thus, if you have an ear-
lier version of the program issued more than 3 months ago,
there are a great many update changes since then that are
NOT listed above, since those have long since been incor-
porated into the program, and, from our point of view, are
now ancient history.
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┌─────────────────────────────────────────────────────┐
│AS YOU WILL NOTE FROM THE FOREGOING CHANGES, THE LAWS│
│AFFECTING BUSINESS TEND TO CHANGE VERY RAPIDLY, AND│
│THIS PROGRAM IS REVISED ON ALMOST A DAILY BASIS TO│
│KEEP UP WITH THE FLOOD OF TAX AND LEGAL CHANGES THAT│
│OCCUR. ACCORDINGLY, IF THIS PROGRAM IS MORE THAN A│
│YEAR OLD, A LARGE PORTION OF THE INFORMATION IN IT│
│IS LIKELY TO BE DANGEROUSLY OUT-OF-DATE. WE ISSUE UP-│
│DATES OF THE PROGRAM EVERY 3 MONTHS AT A VERY REASON-│
│ABLE PRICE. TRY US. │
└─────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────┐
│ OUR FAVORITE QUOTE OR PITHY REMARK FOR THIS EDITION:│
│ │
│ "Man is a thinking animal, a talking animal, a tool-│
│ making animal, a building animal, a political ani- │
│ mal, a fantasizing animal. But in the twilight of │
│ a civilization he is chiefly a taxpaying animal." │
│ -- Hugh MacLennan │
│ │
└─────────────────────────────────────────────────────┘