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State Lawmakers Rethink How Corporate Taxes Are Recalculated

Wal-Mart and a court challenge over taxes is making more lawmakers in Raleigh talk about ways to change how corporate income and taxes are calculated. T

he discount retail giant is seeking a refund of more than 33 million dollars. That's because it disagrees with how the state Revenue Department counted its North Carolina-based income.

But Wal-Mart is one of many multistate corporations that use different strategies to reduce state income tax payments in North Carolina and elsewhere. Critics call the practice improper.

Bills filed in the Senate and House would change the law by requiring these companies to report income and expense sources from all of their subsidiaries, -not- just those doing business in North Carolina.

The state's largest business lobbying group -- the North Carolina Chamber -- is opposed to the idea in part because surrounding states -don't- do what's called "combined reporting." A chamber spokeswoman says the change could hurt North Carolina's business competitiveness.


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