Appendix 6

Table 18

Tax Study States' Corporate Income Tax Rates

July 1, 1996

STATE

TAX RATE

-----TAX BRACKETS----- # of BRACKETS BANK TAX RATES MINIMUM TAX RATE

Connecticut

10.75(a)

--Flat Rate--

1

10.75(a)

$250 (b)

Florida

5.5

--Flat Rate--

1

5.5

(c)

Maine

3.5-8.93

25,000 - 250,000

4

1

(d)

Massachusetts

9.5(e)

--Flat Rate--

1

11.72

$456

Minnesota

9.8

--Flat Rate--

1

9.8

(f)

New Hampshire

7.0(g)

--Flat Rate--

1

7.0(g)

$840

New York

9.0(h)

--Flat Rate--

1

9.0(h)

$325-$1,500

North Carolina

7.75(i)

--Flat Rate--

1

7.75(i)

-

Oregon

6.6

--Flat Rate--

1

6.6

$10 (j)

Vermont

5.5-8.25

10,000 - 250,000

4

5.5-8.25

$150

Washington

No Corporate Income Tax

Wisconsin

7.9(k)

--Flat Rate--

1

7.9

-

Notes:


Major Source: The Federation of Tax Administrators on Internet site: http://sso.org/fta/corp_inc.html

Source for Minimum tax information: State Tax Handbook, CCH Tax Law Editors, as of Dec. 31, 1995.

a- Tax rate will fall to 10.5% in 1997, 9.5% in 1998, 8.5% in 1999, and 7.5% after 1999.

b- Or 3.1 mills per dollar of capital stock and surplus (maximum tax $1 million).

c- 3.3% Alternative Minimum Tax. An exemption of $5,000 is allowed.

d- 27% tax on Federal Alternative Minimum Taxable Income. Addit. state min. tax imposed equal to the amount by which the state minimum tax (27% of adj. Fed. tentative minimum tax) exceeds ME income tax liability, other than withholding tax liability.

e- Rate includes a 14% surtax, as does the following: an additional tax of $2.60 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); Bank tax rate will fall to 11.32% in 1997, 10.91% in 1998 and 10.5% after 1998.

f- An addit. tax equal to the excess of 5.8% of MN alternative min. taxable income over the basic tax is imposed. Corp's are subject to an addit. min. tax ranging from $0 to $5,000 depending on the MN property, payrolls, sales and receipts, and the type of corp. or partnership.

g- Capital gains are taxed at 4%.

h- For tax years beginning before July 1, 1995, a 12.5% surcharge is applied. For tax years beginning after June 30, 1995 but before July 1, 1996, a 7.5% surcharge is applied. Or 1.78 (.01 for banks) mills per dollar of capital (up to $350,000; or 5% (3% for banks) of the minimum taxable income; or a minimum of $1,500 to $325 depending on payroll size. ($250 plus 2.5% surtax for banks); if any of these is greater than the tax computed on net income. An additional tax of .9 mills per dollar of subsidiary capital is imposed on corporations.

i- Plus a 1% surtax. Financial institutions are also subject to a Franchise tax equal to $30 per one million in assets.

j- Minimum Corp. excise tax is $10 in Oregon.

k- Plus a surtax set annually by the Dept. of Revenue to finance a special recycling fund.