2014 State Business Tax Climate Index

If paying fewer taxes is a huge concern for your business, Wyoming might be the place to be.

taxes3That’s according to the Tax Foundation’s tenth annual State Business Tax Climate Index, which scores states based their tax provisions, from property tax to income tax to corporate tax, among others.

Wyoming ranked first, while Washington came in sixth. Oregon, meanwhile, was 12th and New York finished last.

“The goal of the State Business Tax Climate Index is to start a conversation with policymakers about how their states fare against the rest of the country,” Tax Foundation economist Scott Drenkard said in a statement. “With this report, we’re asking: ‘how well is your tax code structured? Are businesses in your state spending too much time complying with onerous tax provisions? Are you double taxing things you shouldn’t?’”

Drenkard said the states that dropped in the rankings this year did so because of policy changes that “makes the tax code more complex, burdensome, or economically harmful,” while others moved up because their tax codes refrain from distorting business decisions and are “more neutral.”

States that impose all major taxes did not necessarily score low. Indiana and Utah, for example, still made the top 10 because they have low rates.

These rankings are based on the tax climate in each state as of July 1, 2013. For more, check out the Tax Foundation’s analysis here.

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  • Rich

    If any of this matters, then why am I always reading about all the venture Capitol money fogging to Silicon Valley, Boston, and NYC?

  • aaronbrethorst

    Wow, good thing Wyoming has such a great climate for businesses! That must be why economic powerhouses like Apple, Chevron, McKesson, and HP are headquartered there! Wait, they’re all in California?! Shock!

    Not shockingly at all, it appears that Wyoming’s largest employers are all affiliated with the state, federal and municipal governments. http://businessclimate.com/wyoming-economic-development/wyoming-top-employers

  • Vroo (Bruce Leban)

    Hmm. With California #48, I think the first sentence “If paying fewer taxes is a huge concern for your business…” just might not be what either entrepreneurs or VCs have as their primary concern.

    The Tax Foundation says “Which states are best for business?” and answers that with the states with the lowest taxes. There are a lot of things that are good for business that have nothing to do with taxes. For example, the weather in WA is better than CA in terms of keeping employees inside and working instead of outside and goofing off. :-)

    Note that the bean counters at Microsoft certainly have paid attention to Nevada being #3, doing large volumes of sales through a tiny Nevada licensing office to avoid paying Washington state taxes. But note that they haven’t actually moved any software development work there. http://www.geekwire.com/2012/scrutiny-apples-tax-tactics-renews-focus-microsoft/

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