The Business and Occupation Tax

The Business and Occupation tax is a state tax based on gross receipts tax. The tax is calculated based on the value of products, total proceeds of sales or total income of the business. For those states that do not have an income tax, the business and occupation tax is calculated based on the total income of activities. These states cannot claim deductions for labor, materials, taxes and other associated costs. The rate at which the business is taxed is based on how the business is classified. To locate a business tax rate, consult your local state revenue office.

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