Connecticut Minimum Royalty Payments

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US-OG-808
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Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.

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FAQ

The surcharge is 10% of a taxpayer's CBT owed. It continues to apply to companies that have more than $250 in CBT liability and (1) have at least $100 million in gross income for that year or (2) file unitary combined returns.

The minimum tax is $250. Form CT?1120 ATT, Corporation Business Tax Return Attachment, contains the following computation schedules: Schedule H, Connecticut Apportioned Operating Loss Carryover; ? Schedule I, Dividend Deduction; and ? Schedule J, Bonus Depreciation Recovery.

Connecticut has a graduated individual income tax, with rates ranging from 3.00 percent to 6.99 percent. Connecticut also has a 7.50 percent corporate income tax rate. Connecticut has a 6.35 percent state sales tax rate and levies no local sales taxes.

The Connecticut minimum tax base (or apportioned Connecticut minimum tax base for multistate corporations) is taxed at a rate of 3.1 mils ($0.0031) per dollar. The minimum tax cannot be more than $1,000,000 or less than $250. 30% of prior year's tax or 27% of current year's tax.

The minimum tax is $250. Form CT?1120 ATT, Corporation Business Tax Return Attachment, contains the following computation schedules: Schedule H, Connecticut Apportioned Operating Loss Carryover; ? Schedule I, Dividend Deduction; and ? Schedule J, Bonus Depreciation Recovery.

The industry standard Guaranteed Minimum Royalty is 50% of the projected sales for a given period. For example, if the royalty rate is 5% and the licensee is projecting $2 MM in sales. The GMR would be $50,000. The licensee would have to sell $1M at minimum to cover the GMR payment of $50,000.

Specifically, the 3% rate on the first $10,000 earned by unmarried individuals and the first $20,000 by couples will decrease to 2%. The 5% rate on the next $40,000 earned by unmarried individuals and the next $80,000 earned by couples will decrease to 4.5%.

An NOL deduction may not exceed 50% of a company's pre-NOL income. NOLs may be carried forward until utilized, up to a maximum of 20 years.

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Connecticut Minimum Royalty Payments