Hear is a prime example of lack of action between our Governor and Legislators.
In February of 2007, the Wall Street Journal ran a story revealing that Wal-Mart pays billions of dollars a year in rent for its stores, but in 25 states — most of them east of the Mississippi — it has been paying most of that rent to itself, and then deducting that amount from its state taxes. By so doing, Wal-Mart has avoided paying several hundred million dollars in state taxes.
The actual outcome to Massachusetts tax payers has been
A number of other states, like Massachusetts, are considering “combined reporting” tax reform, which requires corporations to report all their revenues in one state, ending the ability to assign costs to other states and escape taxation. All related companies would have to file one income tax return. In Massachusetts, Wal-Mart says it paid nearly $19 million in state and local taxes in 2006. Assuming roughly $11 million of that was state income tax, the retailer also avoided $5.4 million by deducting rent it paid to its Delaware-based REIT as a business expense, lowering its taxable income. The company also cost taxpayers $7.2 million in health care costs for 6,000 Wal-Mart workers and dependents on Medicaid. The net result is that Massachusetts taxpayers actually lost money on the 45 Wal-Mart stores in their state. Massachusetts Governor Deval Patrick has drafted legislation that would close Wal-Mart’s loophole in the Commonwealth, but the Massachusetts General Court has not taken up the bill.
Add it up that is 12 million plus lost due to the fact this is not getting done.
I am sure that would help reduce property taxes put cops on our street and make BIG BUSINESS pay their fair share of taxes.
We need as a community to put pressure on our elected officials to get it done!