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Colorado ranks 19th in tax analysis

Colorado ranks 19th among the 50 states in the latest results of an annual analysis of how taxes affect business.

Colorado slipped one spot in the State Business Tax Climate Index for 2014, but continues to fare well for  its comparatively lower individual and corporate income taxes.

The Tax Foundation — a nonprofit, nonpartisan tax research organization based in Washington, D.C. — compiles the index to compare state tax systems and how those systems affect business climates.

The index takes into account more than 100 variables in five major areas of taxation: individual and corporate income taxes, property tax, sales tax and unemployment insurance tax. Those variables are then used to calculate an overall score and determine rankings.

The latest ranking is the lowest for Colorado since the state climbed to 10th in the 2008 index.

For 2014, Colorado ranked highest at 15th for individual income taxes, 21st for corporate income taxes and 22nd for property taxes. Colorado ranked lower at 28th for unemployment insurance taxes and 44th for sales taxes.

Wyoming remained the top-ranked state in 2014 index. Rankings also remained unchanged for the remainder of the top five states: South Dakota, Nevada, Alaska and Florida.

Many of the top-ranked states don’t impose a major tax. Wyoming, South Dakota and Nevada assess no corporate or individual income taxes.

Alaska imposes no individual income tax or statewide sales tax.

New York remained the lowest-ranked state in the 2014 index, followed by New Jersey, California, Minnesota and Rhode Island.

The lowest-ranked states impose comparatively high tax rates under what are often complex systems.

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 Oct 9 2013. 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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