Many cities and towns use a simple formula involving the capitalization, or “cap rate” to calculate property tax assessments. The cap rate is determined by dividing the property’s net operating income by its sales cost.
The Internet and other technological developments have made it easy for companies to do business across state lines. Unfortunately, along with these new business opportunities comes a new set of tax issues.
Crossing state lines for a project can be a savvy way to boost the bottom line. But doing so can also mean dealing with new and complex tax issues such as dealing with nexus. Establishing an economic presence may make you subject to state and local taxes.