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Colorado ranks ninth in small business tax index

Colorado continues to rank among the top 10 most business-friendly states in an annual analysis of the cost of tax systems on starting and growing small businesses.

Colorado slipped one spot, but ranks ninth in the 2014 Small Business Tax Index calculated by the Small Business & Entrepreneurship Council.

The small business advocacy and research group takes into account 21 tax measures in calculating a single score that offers state-by-state comparisons.

Karen Kerrigan, president and chief executive officer of the Small Business & Entrepreneurship Council, said business owners consider taxes in deciding where to state or relocate their operations. “Taxes are a priority issue, and tax-friendly states are much more appealing for entrepreneurs.”

Colorado consistently ranks among the most business-friendly states with its comparatively low taxes. Colorado ranks among the top 20 states in nine tax measures.

With a top rate of 4.63 percent, Colorado assesses the ninth lowest corporate income taxes and 11th lowest corporate capital gains taxes.

Colorado ranks 11th for the lowest state diesel taxes and is tied for the 16th lowest state gasoline tax.

Colorado fares less well in ranking 35th for its state and local property taxes as a share of personal income. “In the end, if the tax burden is light on economic risk-taking, then that will be good news for entrepreneurship, business, investment, economic growth and job creation in each state,” said Raymond Keating, chief economist for the Small Business & Entrepreneurship Council.

Nevada moved up two spots to rank first in the 2014 Small Business Tax Index, followed by South Dakota, Texas, Wyoming and Washington. California ranked dead last in the 2014 index, followed by Minnesota, New Jersey, Hawaii and Iowa.

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 Apr 15 2014. 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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