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Maryland Report Finds Large Companies Avoid Paying Taxes Nearly half of the state's largest for-profit companies did not pay corporate income taxes in 2005, a new report shows. The report released by the State Comptroller found that 64 of the 132 largest companies in the state did not pay corporate income taxes. Maryland collected about $574 million in corporate taxes in this fiscal year, a little less than 5% of total general fund revenues. The study has strengthened calls from lawmakers to change corporate tax laws allowing "combined reporting," a method of calculating state taxes that allows companies to shuffle income to subsidiaries in states that have no corporate income tax or low rates. Source: The Baltimore Sun
Delaware Stores Dread Tax Increase Cigarette retailers, particularly those along state borders, are concerned that a new 60-cent-a-pack tax increase on cigarettes could result in a downturn in their business. The latest tax, which took effect last week, will result in a total excise tax on cigarettes in the state to $1.15 per pack—15 cents higher than nearby Maryland. It is the second hike during Gov. Ruth Ann Minner's (D) tenure—the tax was increased by 31 cents in 2003. The latest increase is expected to bring in $48 million in revenues. Source: Delaware State News
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Arkansas Healthcare Plan for Small Businesses Announced Gov. Mike Beebe (R) is spreading the news about a program created to give certain small businesses the ability to provide health insurance for seven hospital days a year, six doctors' visits a year, and coverage for two prescriptions a month. ARHealthNet offers a state and federal subsidy to qualifying small businesses with less than 500 full-time employees. Beebe said the startup program, which is only available for 15,000 employees initially, is funded through the state tobacco settlement. The state budgetary impact is expected to reach $25 million over five years, based on full implementation. Source: Arkansas Democrat-Gazette
North Carolina Renewable Energy Bill Revamped State legislators added new environmental protections to a major energy bill last week, but left intact a provision that would make it easier for power companies to build coal and nuclear power plants. The bill would require power companies to begin energy-conservation programs and increase their use of renewable-energy resources. However, energy companies and environmental groups continue to clash over a provision that would ease the construction of coal and nuclear power plants by allowing power companies to charge customers to pay for those plants before the plants are finished being built. Source: The Winston-Salem Journal
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Illinois Businesses Face Fines Under Statewide Smoking Ban Gov. Rod Blagojevich (D) signed legislation last week to enact a statewide smoking ban in public places, making Illinois the 19th state with a comprehensive smoking ban. The measure, which takes effect January 1, will prohibit smoking in most public places and workplaces, including outdoor sections of restaurants and sports venues. Businesses that repeatedly violate the law could be fined at least $2,500. Source: The State Journal-Register
Louisiana Business Groups Urge Veto Overrides Business interest-groups are urging legislators to return to the state capital to undo some of Gov. Kathleen Blanco's (D) vetoes. Blanco vetoed 14 bills from the recent legislative session, including a business tax exemption to offset high energy prices. She also vetoed House Bill 505, which would have removed 1 cent of a 3.3% sales tax on natural gas purchases by Louisiana industries. A veto can be overridden with a two-thirds vote of each chamber. There has not been a veto session since the state constitution was rewritten in the 1970s. Source: The Advocate
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Oregon Businesses Urge Lawmakers to Consider Environmental Tax Credits Advocates say they'd like the Legislature to consider replacing Oregon's soon-to-expire pollution control tax credit with an "environmental enhancement" credit when it returns to Salem in February, or in the next regular session in 2009. The proposed plan would give companies a 35% credit against the cost of pollution controls that meet state environmental standards but exceed what the federal government requires. In addition, companies would be eligible for a 50% tax credit against the cost of equipment and facilities that limit the discharge or emission of pollution above and beyond what either Oregon or federal law mandates. A similar plan failed in the House last session. Source: The Register-Guard
Washington Contaminated Meat Still Sold in Stores Canned meat products recalled due to botulism poisoning were still being sold in Washington grocery stores in Cowlitz, Spokane, and Island counties, the state Health Department announced. The state Health Department is advising consumers who have purchased any of the approximately 90 recalled products to throw them out immediately. State health officials continuing their search to make sure stores pull the recalled products off their shelves. The concern is with smaller stores that might not know about the recall, a state spokesman said. Source: The News Tribune
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