More Wal-Mart nuggets as state legislators prepare to return to session

Adding to what we discussed might happen in West Virginia, with that state lowering its corporate income tax rate, here are a couple additional nuggets we’ve found for your reading pleasure.

First, in Kentucky, State Reps. Bill Farmer of Lexington and David Floyd of Bardstown are suggesting that now is the time to eliminate the state’s corporate and individual income taxes. Its a funny suggestion on its surface, since, well, lots of states are having a hard time paying for much of anything these days. But there is a method to the madness, and here it is:

The legislation drafted by Reps. Bill Farmer of Lexington and David Floyd of Bardstown would replace the income tax by spreading the sales tax to a host of services that are currently exempt, including plumbing, roofing and other contracting work, and some consulting work. Another huge chunk of change would roll into the state’s bank account by charging 5 percent tax on rent paid for commercial — but not residential — real estate space, according to the 66-page bill.

Since Wal-Mart rents a lot of its properties to...wait for it...itself, could this mean Wal-Mart could potentially be taxed on its own rental fees? Possible, but there would be one sure tax Wal-Mart would have to worry about - under the proposal, Kentucky would collect taxes on charges that stores such as Kroger and Wal-Mart impose on product makers to have special displays at the end of their aisles. The legislation in question is viewed as unlikely to pass this session, but even Democrats in Kentucky have admitted the proposals are something to consider.

House Republicans draft tax reform proposal [Lexington Herald-Leader]

In North Dakota, Wal-Mart is lobbying hard for a bill to repeal a law that requires, with few exceptions, pharmacies be owned at least 51 percent by pharmacists. A repeal of that law would of course open the door for Wal-Mart and other chain pharmacies to waltz right in and start peeling off local drug stores.

Pharmacists and others called “North Dakotans for Prescription Facts” want the law retained, saying it will kill small town pharmacies and hurt personalized service. “North Dakotans for Affordable Health Care,” funded in large part by Wal-Mart and Walgreen’s, wants the law repealed.

N.D. legislative session will have plenty of bread-and-butter issues [Grand Forks Herald]

Posted by Corey Himrod on Tuesday, January 06, 2009

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