New York Tax Nightmare Enacted
HPI note: What is enacted initially in one state is often copied by other states, so it’s entirely possible that a recent tax change in New York will spread.
The new tax law takes aim at franchising. Franchising is a huge part of the American economy and includes such companies as McDonald’s, Burger King, Baskin-Robbins and Fantastic Sams.
Franchisors are the corporations that control a franchise chain, and franchisees are those who buy the rights to own and run units from the franchisor. For example, Burger King’s head office in Miami, Florida is the location of the franchisor and your cousin Joe who owns five Burger King restaurants in California would be a franchisee.
New York State has notified franchisors that a law change requires that they release franchisee revenue figures directly and electronically to the New York State Department of Taxation and Finance.
Read the story here. [Blue MauMau]
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