What was the current state income tax provision for Budget in 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ties under vehicle programs - other of $203 million, $287 million, and $265 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $287 million, $237 million, and $212 million, respectively.
Income Taxes
| Income laxes |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the current state income tax provision for the year ended December 31, 2023, was $43,888. This figure is part of the overall provision for income taxes, which also includes federal and foreign income taxes.
For a prospective franchisee, understanding the state income tax provision is crucial as it reflects Budget's profitability and tax obligations within various states. This information can be useful in evaluating the financial health and stability of the company. It's important to note that this provision is an accounting estimate of tax obligations and may differ from the actual taxes paid.
The FDD also provides a breakdown of deferred income tax assets and liabilities, which can give further insight into Budget's tax planning and future tax obligations. Reviewing these figures in conjunction with the current income tax provision can offer a more comprehensive view of the company's tax situation. Franchisees should consult with financial advisors to fully understand the implications of these tax figures.
It is also important to note that Budget is subject to examination by various state tax authorities for the tax years 2012 through 2023. Any changes resulting from these examinations could affect Budget's financial statements.