This excerpt taken from the MPAC 10-Q filed Aug 10, 2006.
The Companys effective tax rate for the first six months of 2006 is 34.5%, which approximates the Companys expectations. The higher effective tax rate of 47.8% in the first six months of 2005 than would be customary is due to increasing the valuation allowance for deferred tax assets related to New York State credits. New York State enacted tax legislation resulting in a change to the New York State apportionment methodology. The enacted legislation will result in a lower apportionment of the Companys taxable income to New York State, resulting in lower New York State income taxes. Accordingly, the Companys ability to use or realize New York State tax credits is expected to be reduced. As a result, the Company increased its valuation allowance resulting in an increase to income tax expense of approximately $600,000 in the second quarter of 2005.
This excerpt taken from the MPAC 10-Q filed May 15, 2006.
Our effective income tax rate was 33.7% in the first three months of 2006 compared to 37.0% for the first three months of 2005. The higher tax rate in the first quarter of 2005 was due to state income taxes.