The Revenue Laws Committe met today, one day before the beginning of the short session, to roll out changes the General Assembly plans to make to the current tax laws in the state. For design firms there is one provision worth watching, a change to what local governments are allowed to charge business in privilege license taxes.
The new proposal would cap at $100 what any local government could charge businesses for this privilege tax. The current system allows for local governments to basically set their own rate structure. AIANC has heard about many municipalities applying their privilege tax collections unevenly throughout the design industry. While the proposal would have a significant impact on local government tax revenue, it would lend consistency for business across the state in understating their obligations in paying these privilege taxes.