Wyoming Ranked #1 in Tax Foundation’s 2013 Rankings
The Tax Foundation has released its 2013 State Business Tax Climate Index, which ranks states on a number of variables related to their tax structure. Wyoming, South Dakota and Nevada were ranked the highest among all states, primarily due to their relatively unique tax structures: none of the three states have a corporate or individual income tax. States that do not collect one or more of the three major taxes – corporate income, individual income, or sales tax – are generally ranked higher by the Foundation. For example, number 4 ranked Alaska has no individual income or state-level sales tax while number 5 ranked Florida has no individual income tax.
Maine jumped up in the rankings this year – moving from 37th to 30th overall – primarily due to the state’s repeal of its alternative minimum tax and a change in how the state treats net operating losses. Michigan also moved up in the rankings significantly (their overall rank moved from 18th to 12th best, and their corporate ranking from 49th to 7th best), by replacing what the Tax Foundation called a “cumbersome and distortionary” gross receipts tax (the Michigan Business Tax) with a flat 6 percent corporate income tax.
Check out the full report HERE.