ST. LOUIS, Mo. (Press Release – March 9, 2012) – A new report from the Tax Foundation ranks Missouri 15th for its overall business tax climate. The 2012 State Business Tax Climate Index measures which states’ tax systems are best for business and economic growth.
The study reviewed five components of each state’s tax system—corporate tax, individual income tax, sales tax, property tax and unemployment insurance tax. Missouri ranked in the top 10 in three categories, including the 7th best property tax rate, 8th best corporate tax rate and 9th best unemployment insurance tax rate.
“The State Business Tax Climate Index is designed to grade states on how their tax structures line up with the general principals of good tax policy,” says Mark Robyn, economist at the Tax Foundation and principal author of the report. “The report indicates how businesses can expect to be treated in various states.”
According to the Tax Foundation, states with the best business tax climate will be most competitive in bringing in business, creating jobs and generating economic growth. Missouri ranked higher than seven of its eight surrounding states – Illinois, Arkansas, Iowa, Kansas, Kentucky, Nebraska and Oklahoma.
“Missouri ranks very well across the tax structures,” says Robyn. “Tax rates are lower and the tax base is more neutral, this means businesses who relocate to Missouri can expect to be treated more fairly than in other states.”
Missouri has been recognized for its favorable tax climate several times in recent months.
-In January 2012, a study by Ernst & Young ranked Missouri highest among the south central states for competitive tax structure for businesses.
-Last year, Missouri was ranked 7th best for business and taxes by the U.S. Chamber of Commerce.
Missouri’s tax climate and low business costs have attracted numerous companies to the state. In 2011, Missouri became home to Applebee’s International, Card Compliant, Doyle Equipment Manufacturing, Data Systems International, Inc., Aero-Tech Laboratory Equipment Company, Olympic Steel Inc. and Flex-N-Gate.
The report from the Tax Foundation represents the tax climate as of July 1, 2011, the first day of the standard 2012 state fiscal year. To read the report, visit http://www.taxfoundation.org/news/show/22658.html.
About The Missouri Partnership
The Missouri Partnership is a public-private, non-profit corporation with the principal mission of recruiting new business investment to the state. Through collaborative efforts with state and local partners, the Missouri Partnership works to attract new companies and market the state’s business advantages to U.S. and international companies. For more information, please visit www.missouripartnership.com.