US States Ranked by Bussiness Taxes

March 28, 2012 Taxation in USA

WASHINGTON, D.C. – New research has ranked each state in America based on the total tax liabilities faced by businesses in the regions, showing which areas of the country are most beneficial for different types of commercial operations.

The US based research organization the Tax Foundation has published a comprehensive new index of corporate tax liabilities in different states around USA, assessing each region by calculating the cumulative tax liabilities arising from corporate income tax, property tax, sales tax, capital stock tax, gross receipts tax, unemployment insurance tax, and any other state taxes applied on businesses.

The Tax Foundation also examined the effect of companies’ ages on their tax liabilities, factoring in any tax breaks that are available exclusively to newly established companies.

The rankings of the tax obligations were broken down into one of seven different types of business activities: call centres, research and development operations, capital intensive production, labour intensive production, distribution centres, retail stores, and corporate headquarters.

According to the Tax Foundation, Nebraska is the best state for a company to establish a new corporate headquarters, while Wyoming is the most advantageous tax conditions for an already operating headquartes.

Louisiana is the best state for companies involved in the research and development of new technologies, due to the number of tax breaks offered by the state government for R&D activities.

The best state for a company to establish a new retail store is South Dakota. However, Wyoming was ranked as the state with the best tax environment for already established retail operations.

New call centre projects face the lowest tax liabilities in Nebraska, while already established call centers are best off in South Dakota.

Louisiana was seen as offering the best tax treatment for labour intensive manufacturing and capital intensive manufacturing.

Ohio was regarded as offering the lowest cumulative tax rate for a newly started distribution centres, and Wyoming was shown to have the lowest tax rate on already operating centers.

Photo by Russ Allison Loar