What are miscellaneous state and local taxes?
Miscellaneous state and local taxes are sometimes called nuisance taxes. Typical of these taxes are:
- Property tax
- Excise taxes
- Licensing fees
- Taxes on utilities and freight bills
- Pollution control equipment
- Gas fuels tax
- Telephone service tax
All of these taxes are levied at the state and local level. They are not income, sales or foreign related, and are generally public information (unlike sales and income taxes), which is why we can do our research up-front.
Why doesn’t the state give my company a refund automatically? Why do I have to request a refund?
Refunds are mostly automatic for sales and income taxes. With miscellaneous taxes, it’s different. A refund claim must be filed using the proper procedure, data and methodology.
What is BTRS’s process for assisting in securing me a tax benefit?
The process is very straight-forward. We prepare all the paperwork for you, which you would then review and submit to the proper governing body for a refund.
How much time is involved on the client’s end?
It’s very limited. BTRS’s goal is to be as efficient as possible during the entire process. Of the time required by the client, it’s usually measured in hours rather than days or weeks.
How does BTRS do its research?
BTRS applies unique research methodologies. Our primary source of data is state and local tax data, which is public record for miscellaneous taxes. From there, we further hone our research with data from public financial and statistical information on companies. This data is then run through our own quantitative models to identify probable candidates for tax benefits.
What do you mean by “tax benefit?”
We use this term to indicate a tax recovery in one of three forms: tax refund, tax credit or tax savings. A refund is a check sent back to the company from the state or local taxing authority for the overpaid amount. A tax credit occurs when the taxing authority applies the overage to future tax payments. A tax savings is what a company would have paid for the year using its historical approach and data versus the lower amount that it will pay due to BTRS’s assistance.