Appendix 6 -- Brief Description of Corporate Taxes:

Vermont

Begin with federal taxable income. Add interest on non-Vermont state and local obligations. Subtract interest on federal obligations. Result is Vermont Net Income. The Vermont tax is: The larger of:

Minimum tax of $ 150 Or

5.5% of first $10,000

$550 plus 6.6% of excess over $10,000 to $25,000

$1540 plus 7.7% of excess over $25,000 to $250,000

$18,865 plus 8.25% of excess over $250,000.

Connecticut

Begin with federal taxable income. Add interest on non-Connecticut state and local obligations. Subtract interest on federal obligations. Result is Connecticut Net Income.

The Connecticut tax is:

The largest of:

1. Connecticut taxable income times 11.25% or

2. .0031 times the total of:

The average Capital Stock total (Preferred and Common) for Start- of-the-Year (SOY) and End-of-the-Year (EOY)

Plus

The average Paid-In Surplus and Undivided Profits(Retained Earnings) totals for SOY and EOY or

3. $250 minimum.

Florida

Begin with federal taxable income. Add interest on non-Florida state and local obligations. Subtract interest on Federal obligations. Result is Florida Net Income. The Florida tax is:

5.5% of Florida Taxable income.

Maine

Begin with federal taxable income. Add interest on non-Maine state and local obligations. Subtract interest on federal obligations. Result is Maine Net Income.

The tax is:

.035 times Maine taxable Income.

Massachusetts

The larger of :

Minimum Excise tax of $456 or

Actual Excise tax which is the total of:

1. .0026 times taxable Massachusetts tangible property (basically inventory)

2. Massachusetts Net Profit times .095.

Minnesota

Begin with federal taxable income. Add interest on non-Minn. state and local obligations. Subtract interest on federal obligations. Result is Minnesota Net Income.

The Minnesota tax is the total of:

1. Regular Tax (Minnesota Net Income times .098)

Plus

2. Minimum Fee of $0, $100, $300, $1,000, $2,000, $5,000

from a table based upon the sum of tangible property, total payroll, and total sales.

New York

The larger of the tax on the "Entire Net Income Base" or the tax on the "Capital Base" or the tax on the "Minimum Taxable Income Base".

The "Entire Net Income Base" is federal taxable income

Plus:

1. Interest on federal, state, and local obligations

2. State and local taxes deducted on federal return

3. Federal depreciation allowances

Minus:

1. New York depreciation

The tax is .08 times this total.

The "Capital Base" uses the average of SOY and EOY values for the following:

1. Total Assets from federal return

2. Less: Real Property (listed on federal return at cost)

3. Plus: Real Property at market value

4. Less: total liabilities.

The tax is .00178 times this total.

The "Minimum Taxable Income Base" is:

1. The "Entire Net Income Base" from above

2. Plus Depreciation expense

The tax is .035 times this total.

North Carolina

North Carolina charges the corporation two taxes. One is a franchise tax, which is a tax on capital, and the other is an income tax.

Franchise tax is $1.50 per $1,000 (minimum $35) of the total of:

1. Capital Stock, Paid-In surplus and Retained Earnings

plus

2. Investment value of tangible property (inventory, buildings, equipment, land etc.) at the end of the year.

Plus

3. 55% of the appraised value of property at the start of the year.

Income tax is .0775 times Net Taxable Income, which is:

1. Federal taxable income

Plus

2. Any deduction taken for employee benefit programs.

Oregon

Begin with federal taxable income. Add interest on non-Oregon state and local obligations. Subtract interest on federal obligations. Result is Oregon Net Income.

The tax is .066 of Oregon Net Income.

Wisconsin

Begin with federal taxable income. Add interest on non-Wisconsin state and local obligations. Subtract interest on federal obligations. Result is Wisconsin Net Income.

The tax is .079 of Wisconsin Net Income.

Washington

Washington does not have a corporate income tax. It does have, however, a Business and Occupation (B&O) tax which is a tax on gross receipts without regard to costs/expenses. Every business/occupation entity is subject to this tax whether it is a corporation, partnership, sole proprietorship or a non-profit organization. The tax rate ranges from .0001 (wholesale crops) to .02 (business services) with farming (other than cash crops) being exempt.

New Hampshire

The New Hampshire tax is called a Business Profits Tax. It applies to any business with gross income over $50,000. The tax is 7.5% of the Taxable Income line on the federal return.