Taxes local

Acceptability of United States investment by government excise, payroll, capital gains, customs, other indirect and local taxes)... 

This term covers local taxes, which are calculated on the value of the site. A typical figure would be 1 to 2 per cent of the fixed capital. 

Fixed costs 5. Maintenance 6. Operating labour 7. Laboratory costs 8. Supervision 9. Plant overheads 10. Capital charges 11. Insurance 12. Local taxes 13. Royalties 5-10 per cent of fixed capital from manning estimates 20- 23 per cent of 6 20 per cent of item (6) 50 per cent of item (6) 10 per cent of the fixed capital 1 per cent of the fixed capital 2 per cent of the fixed capital 1 per cent of the fixed capital... 

Tax, namely federal business income tax and state and local taxes. 

Indirect expenses Part of the manufacturing expense of a product not directly related to the amount of product manufactured, e.g., depreciation, local taxes, and insurance. 

Manufacturing expense The sum of the raw material, labor, utilities, maintenance, depreciation, local taxes, etc., expenses. It is the sum of the direct and indirect (fixed and variable) manufacturing expenses. 

Note In the above analysis, the annual costs for insurance, local taxes, and maintenance were not changed with varying investment costs. Royalties and catalyst replacement costs were not changed with operating volumes. 

The fixed operating costs are those that do not change with production level. The most important is the cost of operating, maintenance and service labour, plus its management, but also included are such items as insurances of all kinds, local taxes, waste disposal (which may be a fixed cost rather than a running cost) and energy tax (carbon levy). Apart from labour, the cost of which is based upon the nature of the plant (its complexity, its level of automation), these other fixed costs are usually obtained by factoring from the plant s capital cost. 

Employees of QP receive salaries free of local taxes education assistance free medical and dental care transport allowances and annual leave with paid air fares to the employee s home country. 

Taxation and legal restrictions. State and local tax rates on property income, unemployment insurance, and similar items vary from one location to another. Similarly, local regulations on zoning, building codes, nuisance aspects, and transportation facilities can have a major influence on the final choice of a plant site. In fact, zoning difficulties and obtaining the many required permits can often be much more important in terms of cost and time delays than many of the factors discussed in the preceding sections. 

Expenses for taxes and insurance play an important part in determining the economic situation for any industrial process. Because Federal, state, and local taxes may amount to a major portion of a concern s earnings, it is essential for the chemical engineer to understand the basic principles and factors underlying taxation. Insurance costs ordinarily are only a small part of the total expenditure involved in an industrial operation however, adequate insurance coverage is necessary before any operation can be carried out on a sound economic basis. 

Fixed-capital investment 2. Working capital 3. Total capital investment (1 + 2) 4. Annual income (sales) 5. Annual manufacturing cost (a) Raw materials (b) Labor (c) Utilities (d) Maintenance and repairs (e) Operating supplies (f) Laboratory charges (g) Patents and royalties (h) Local taxes and insurance (i) Plant overhead (j) Other (explain in Notes) 5-T. Total of line 5 ... 

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