South Dakota has most business-friendly tax structure
- September 22, 2009
When it comes to taxes, Virginia doesn’t rank as a top state for business. The 2010 State Business Tax Climate Index released today recognized South Dakota as the state with the most business- friendly tax system. New Jersey ranked at the bottom as the least friendly.
Virginia came in at No. 15, according to the Washington-based, non-profit Tax Foundation. Since 2006, the foundation has compiled an annual index to measure the competitiveness of each state’s tax system. While how much states collect in taxes is critical, the report says, the ways in which states go about imposing the tax burden is also important in terms of attracting business and economic development.
The index considers five tax components: corporate, individual income, sales, unemployment insurance and property. Virginia received its highest rankings, a 4 and an 8, in the areas of corporate tax and sales taxes. Its overall ranking this year was the same as in 2008. The report looked at the tax climate in each state as of July 1, 2009. The full report can be viewed at http://www.taxfoundation.org/files/bp59.pdf