Franchise and Excise Tax Law

Franchise and Excise Tax Law refers to taxes imposed by state and local governments on businesses for the privilege of operating within their jurisdiction. The franchise tax is typically based on a company’s net worth or capital, while the excise tax is applied to specific activities, sales, or products. These taxes support public services and infrastructure. Businesses must understand these obligations to ensure compliance and avoid penalties, as they can affect overall profitability and operational planning.