Does Disconformity in State Corporate Income Tax Systems Affect Compliance Cost Burdens?

Posted: 18 Apr 2003

See all articles by Sanjay Gupta

Sanjay Gupta

Michigan State University - Eli Broad College of Business

Lillian F. Mills

University of Texas at Austin - McCombs School of Business

Abstract

Prior multistate tax research on differences in state tax rules, while investigating the effects on revenue, investment, and tax burden, is silent regarding the effect on compliance costs. We investigate factors that explain state income tax compliance costs for large firms. We find that state compliance costs increase in the number of filing states and entities (or in the number of state tax returns), firm size and variables proxying for state tax complexity. Our evidence that multistate disconformity increases compliance cost burdens informs the debate about the costs of tax competition.

Keywords: multistate taxation, compliance costs, disconformity, burden

JEL Classification: H25, H70, M41

Suggested Citation

Gupta, Sanjay and Mills, Lillian F., Does Disconformity in State Corporate Income Tax Systems Affect Compliance Cost Burdens?. National Tax Journal, June 2003. Available at SSRN: https://ssrn.com/abstract=386580

Sanjay Gupta

Michigan State University - Eli Broad College of Business ( email )

632 Bogue Street, 520 BCC
East Lansing, MI 48824
United States
517-432-6488 (Phone)

HOME PAGE: http://www.broad.msu.edu/

Lillian F. Mills (Contact Author)

University of Texas at Austin - McCombs School of Business ( email )

Austin, TX 78712
United States

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