What is another word for franchise tax?
Pronunciation: [fɹˈant͡ʃa͡ɪz tˈaks] (IPA) 
Franchise tax is a term used to refer to a tax levied on businesses by the state government. It is also known as a tax on the privilege of doing business or a state business tax. In some states, the tax is based on a percentage of a company's net worth, while in others it is determined by the company's net income or the number of shares of stock issued. Synonyms for franchise tax include capital stock tax, corporation tax, corporate income tax, corporate franchise tax, and corporate privilege tax. Regardless of the name, franchise tax is an important source of revenue for state governments, and companies must pay it to maintain their legal status to do business in the state.
