Menu

Public Policy

Council on State Taxation releases new Business Tax Competitiveness Study

Chaaron Pearson on Friday, April 22, 2011 at 12:00:00 am

This week, the Council on State Taxation (COST) and Ernst & Young announced the release of a new study ranking states by tax burden on new investment.  They have provided a state-by-state comparison of the tax liabilities that new investments in selected industries or types of economic activities would incur in each state.  

COSTís study identifies the 10 states with the highest and lowest effective tax rates for the types of new capital investments being made in the U.S.  The business tax burdens include income and franchise taxes on profits, real and personal property tax and sales taxes on business input purchases.  Overall, the study shows a large difference in tax burdens among the states.

In the studyís introduction, COST urges legislators to examine the entire system of state and local business taxes, not just a single tax, in evaluating their stateís tax competitiveness. 

COST acknowledges that tax liability on new investments is just one factor of many that weigh into a decision by a company to invest in a state.  Typically, companies select locations for new investments by examining a wide range of factors including workforce, property, tax system features and non-tax costs.  This study does not consider variable issues such as availability of tax credits or incentives, unemployment taxes or certain industry specific taxes. 

To read COSTís full report: Competitiveness of state and local business taxes on new investment

For more on using and fighting rankings, join us for a free webinar on rankings from a communications and public policy perspective next Tuesday at 1pm ET.  Click here for more information and to register.

Posted by: Melinda Smith on November 16, 2012 at 6:50:04 pm

Leave a Comment

-->
OFFICIAL CORPORATE SPONSORS
Accrisoft is an Official Corporate Sponsor of ACCE American Express is an Official Corporate Sponsor of ACCE Aventura World by Central Holidays West is an Official Corporate Sponsor of ACCE, the Association of Chamber of Commerce Executives Benfits Trust is an Official Corporate Sponsor of ACCE Citslinc is an Official Corporate Sponsor of ACCE Grow With Google is an Official Corporate Sponsor of ACCE Insperity is an Official Corporate Sponsor of ACCE Market Street Services is an Official Corporate Sponsor of ACCE, the Association of Chamber of Commerce Executives United Networks of America is an Official Corporate Sponsor of ACCE The U.S. Chamber is an Official Corporate Sponsor of ACCE Vistage is an Official Corporate Sponsor of ACCE
SILVER SPONSORS
Avalanche Consulting sponsors ACCE, the Association of Chamber of Commerce Executives CardConnect sponsors ACCE, the Association of Chamber of Commerce Executives Constant Contact POWER 10 sponsors ACCE, the Association of Chamber of Commerce Executives Resource Development Group sponsors ACCE, the Association of Chamber of Commerce Executives YouScience sponsor ACCE, the Association of Chamber of Commerce Executives
Sponsorship and advertising opportunities Association of Chamber of Commerce Executives