Tennessee slipped a notch, but remains among the most business-friendly states for taxes, according to a new Tax Foundation report released today.
The state is 15th on the Tax Foundation’s 2013 State Business Climate Index, down from 14th in the 2012 index.
The 2013 index reflects tax policies for the various states as of July 1, the first day of the 2013 fiscal year.
Tennessee’s taxes are more business-friendly than all bordering states, which can be an edge in business recruitment.
“Even in our global economy, a state’s strongest and most immediate competition often comes from other states,” Tax Foundation economist Scott Drenkard said in a news release. “State lawmakers need to be aware of how their states’ business climates match up to their immediate neighbors and to other states in their region.”
Index rankings for neighboring states are: Missouri, 16th, Mississippi, 17th, Alabama, 21st; Kentucky, 24th; Virginia, 27th; Arkansas, 33rd; Georgia, 34th; North Carolina, 44th.
Click here for the Tax Foundation 2013 State Business Climate Index.
The Tax Foundation leans conservative, but is one of the oldest think tanks in the country. It may be best known for its annual Tax Freedom Day report, a calculation of how many days taxpayers have to work to pay their total state and federal taxes.