When it comes to taxes, Tennessee continues to be one of the most business-friendly states in the country, according to a Tax Foundation report released today.
Tennessee ranks 15th on the 2014 State Business Tax Climate Index, unchanged from a year ago.
The index reflects the tax climate of each state as of July 1, 2013.
The Volunteer State has a more business-friendly tax climate than all neighboring states and in the southeast region, only Florida ranks higher at No. 5.
Wyoming has the nation’s most business-friendly tax structure, followed by South Dakota, Nevada, Alaska, Florida, Washington , Montana, New Hampshire, Utah and Indiana.
The most unfriendly states for business taxes are mostly on the coasts and in the northeast. The bottom ten are Maryland, Connecticut, Wisconsin, North Carolina, Vermont, Rhode Island, Minnesota, California, New Jersey and New York.
The Tax Foundation evaluated five types of taxes — corporate, individual income, sales, unemployment insurance and property taxes.
Not surprsingly, Tennessee ranked best — No. 8 — in individual income tax and worst — No. 43 – in sales tax. Tennessee has one of the highest combined state and local sales tax rates in the country.
Tennessee’s tax climate gives it an edge over most other states in the business recruitment.
Here’s an excerpt from the report:
“It is important to remember that even in our global economy, states’ stiffest and most direct competition often comes from other states. The Department of Labor reports that most mass job relocations are from one U.S. state to another, rather than to a foreign location. … State lawmakers are right to be concerned about how their states rank in the global competition for jobs and capital, but they need to be more concerned with companies moving from Detroit, MI, to Dayton, OH, rather than from Detroit to New Delhi. This means that state lawmakers must be aware of how their states’ business climates match up to their immediate neighbors and to other states within their regions
Click here for the full Tax Foundation report.
CNBC on Tuesday will reveal the results of its sixth annual look at “America’s Top States for Business.”
New this year is a Twitter Battle — featuring short videos from the states’ governors. All 50 guvs were invited to submit videos detailing what makes their state the best for business.
In less than two minutes Gov. Bill Haslam makes the case for Tennessee. He mentions, among other things, the state’s growing automobile manufacturing sector and a wide variety of consumer products made in Tennessee — M&Ms, solar panels, chemicals, Jack Daniels and more.
Haslam makes sure to note that Tennessee has “one of the lowest state tax burdens in the country.”
Private equity investors are finding fertile opportunities in Tennessee. In 2011, 42 Tennessee-based companies received more than $3.2 billion in private equity investment , according to a report released today by the Private Equity Growth Capital Council, an industry lobbying group.
Compared to other states, Tennessee ranks 15th in total investment value. The top five states are Texas, $20.5 billion; New York, $18.6 billion; California, $15.7 billion; North Carolina, $10.4 billion; and Oklahoma, $8.7 billion.
Workers of Tennessee, take the day off. You’ve earned it. While most of the country will work another two weeks or more to reach Tax Freedom Day, Tennessee workers passed that milestone on March 31, according to the Tax Foundation.
Tennessee has the lowest average tax burden in the country this year, the foundation says.
Tax Freedom Day represents how long it will take the average worker to earn enough money pay his or her total federal, state and local tax obligation for the year. For the nation as a whole, Tax Freedom Day this year comes on April 17.
Ever dreamed of telling the taxman what he can do with itemized deductions? Here’s your chance.
The Internal Revenue Service is looking for volunteers from Tennessee – and several other states – willing to serve on a federal advisory committee that will recommend ways to improve IRS service.
Volunteers must be willing to commit up to 500 hours during the year and pass an FBI criminal background check. And, committee members must be current on their federal taxes. The deadline to apply is April 27.
In between watching basketball games this weekend, go online and check out BusinessofCollegeSports.com. The website offers some fascinating research on the truly big money involved in NCAA basketball.
Where does your favorite hoops team rank in total annual revenue? (based on the 2010-2011 season, Louisville is No. 1 with $40.8M; Tennessee is No. 13 at $13.8M, tops in the Southeasten Conference)
Which coach delivers the best “performance value per dollar of compensation”? (Jim Boeheim at Syracuse)
In the 2010-2011 season, how much money did the NCAA distribute to conferences and universities? ($478M. The Big East got the biggest slice of the pie — $24.9M, compared to $15.6 for the SEC).
Enjoy the games.
Photo: Murray State forward Edward Daniel (2) takes a charge from Colorado State forward Will Bell (23) in the second half of their tournament second-round college basketball game in Louisville, Ky., Thursday, March 15, 2012. (AP Photo/Dave Martin)
Tennessee is in the bottom half of a new study that measures the tax burden businesses would face in each of the 50 states.
The Tax Foundation study released today ranks states based on the tax liability for both mature and new businesses. Tennessee is 29th in both categories, which means it has a heavier tax burden than most of the country.
“Corporate taxes on the state level rarely treat all comers equally, leading to sometimes dramatic disparities in the cost of doing business,” Tax Foundation president Scott Hodge said in a news release. “Tax preferences and incentive deals can distort the playing field based on how long a business has been operating, whether it’s a manufacturing or retail operation or whether it’s moved from another state to set up shop.”