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Colorado ranks 10th in state tax index

Colorado ranks among the top 10 states in the latest analysis of how tax systems affect small business and entrepreneurship.

Colorado comes in at 10th in the 2012 Business Tax Index calculated by the Small Business & Entrepreneurship Council, an advocacy, research and networking organization based in Washington, D.C.

Colorado also ranked 10th in the 2011 index.

Raymond Keating, chief economist of the SBEC, calculates the annual index he said offers an important look at the accumulative effects of state tax systems.

“All taxes matter, whether imposed at the federal, state or local level of government,” Keating said. “They matter to consumers, entrepreneurs, investors and businesses. State and local levies matter in terms of a state’s competitiveness. And they matter when it comes to economic growth and job creation.”

The index combines 18 different tax measures into one score that offers comparisons among the 50 states as well as the District of Columbia. The lower the score, the higher the ranking.

Colorado received a score of 27.260 in the latest index and continues to fare well because of the comparatively lower tax rates assessed in the state.

Colorado assesses the eighth lowest corporate income taxes with a top rate of 4.630 percent. That same rate ranks as the 10th lowest corporate capital gains rate, 17th lowest personal income tax rate and 19th lowest personal capital gains rate.

Colorado ranks eighth in an assessment of unemployment taxes.

Colorado imposes the 14th lowest state and local sales taxes as measured as a share of personal income. Colorado ranks 21st for the lowest state and local property taxes as measured as a share of personal income.

Colorado assesses the 15th lowest state diesel tax and is tied for the 17th lowest state gasoline tax.

South Dakota ranked first in the 2012 Business Tax Index followed by Texas, Nevada, Wyoming and Washington. Minnesota ranked last in the index among the 50 states, followed by New Jersey, New York, Iowa and Maine.

The Business Times has served as the definitive source for Grand Junction business news since 1994. The journal offers news, views and advice you can use twice each month in print with daily updates online at www.TheBusinessTimes.com
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Posted by on May 9 2012. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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  • Eh9051

    We love Grand Junction, climate, people, location, higher education hands down from the other towns we have looked to relocate.. From Southern Calif as we are not able to at some point to retire there with cost of living and taxes..that being said we have found a small shop in downtown for sale and are seeking SBA loan,, this has proven to be a challenge as we are coming out essentially buying job for 100k . Do you have any ideas on funding a new bussiness that has not had but 6 months under their belt? Would we be better off funding a personal loan and trying to obtain loan after we have taken procession of store and have a year under our owner ship? Is there a resource for newbies such as ourselves needing some mentoring and or advice as we navigate this purchase and relocation to GrandJunction ? This may be to vague for any concrete advise but if you have any ideas or would need more information to get your arms wrapped around our potential purchase , I would be happy to hear from you Thankyou Elise
    eh9051@gmail.com

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