The Tax Foundation’s 2011 State Business Tax Climate index lists which states are the most competitive in attracting new business based on its tax structure. The institute measures each based on its corporate tax index, individual income index, sales tax index, unemployment tax index and property tax index.
The Mount Rushmore State scored first in the corporate tax and individual tax indexes, thanks to its lack of a corporate and individual income taxes. Businesses should keep in mind the state finished in the middle of the road when it comes to sales tax and unemployment-insurance tax.
The lack of individual income or state-level sales taxes in the Land of the Midnight Sun helped it rank near the top of the respected indexes. Its property tax rates also helped secure its spot near the top of the report.
The Equality State’s lack of corporate and individual-income taxes helped it score high markets in the respective indexes, which countered its low score in the proper-tax index.
The state’s absence of both corporate and individual income taxes make businesses feel welcome, but don’t forget its weaker ratings in the sales tax and unemployment-insurance indexes.
The Sunshine State doesn’t have an individual income tax, combine that with good scores in the corporate- income tax index and unemployment- insurance index and you have a good place to do business.
The Treasure State benefits from a lack sales tax but is still a good business environment with fair scores across the other indexes.
The Granite State ranks atop the sales tax index, which balances its last place finish in the corporate-tax index to help it remain in the top 10.
Any shopper worth their salt knows Delaware doesn’t have sales tax, but combined with its unemployment insurance and proper-tax index makes it attractive to businesses. But beware: its corporate tax index ranking is second worst.
Utah score fairly well on all major components helping the Beehive State move up one spot on the list from the previous fiscal year.
The Hoosier State rounds out the top 10 tax-friendly states thanks to its balanced scores across the indexes.
Take a look at which states are putting out the 'welcome mat' for small businesses.