2009 CCH. All Rights Reserved.
International and State and Local Transactions
SUMMARY OF CHAPTER
Chapter 25 provides an overview of both international taxation and state and local taxation (SALT). SALT
is addressed in the
rst half of the chapter. International transactions are discussed in the second half.
State and Local Taxation
¶25,001 Types of SALTs
There are numerous types of state and local taxes (SALTs). Common ones include: the individual income
tax, the corporate income tax, the sales tax, the use tax, the gross receipts tax, the franchise tax, the real property tax,
the personal property tax, the unemployment insurance tax, excise taxes, transfer taxes, and severance taxes.
¶25,015 Estate, Inheritance, Gift, and Generation-Skipping Transfer Taxes
Many states impose a tax on the property owned by a person at death, either in the form of a tax on the
estate or the bene
ciary of that property. State-resident-decedents are typically subject to the state tax on all
property owned, within and without the state; nonresident decedents are taxed, in most states, on real and tangible
personal property located within a state.
¶25,025 Property Taxes
Property taxes are levied on owners of real and personal tangible property. A few states also tax intangible
¶25,035 Franchise Taxes
States impose franchise taxes on corporations for the privilege of doing business within the state. The
amount of the franchise tax usually depends on a business’ capital or net worth and its income attributable to
activities within the state.
¶25,045 Sales and Use Taxes (SUTs)
Sales and use taxes are imposed by most states on retail sales of tangible personal property. The retailer is
the typical tax collector (and then remits to the state) for sales taxes. Use taxes are paid by consumers on out-of-
¶25,055 State Income Taxes
Forty-six states and the District of Columbia impose a state income tax on corporations, and 43 states and
the District of Columbia impose an income tax on individual taxpayers.