Colorado ranks 18th in State Business Tax Climate Index

Colorado ranks 18th among the 50 states in the latest analysis of how taxes affect business.

Colorado fares well in the analysis for comparatively low property, individual and corporate taxes, but less so for sales taxes and unemployment insurance.

Colorado has ranked 18th in the State Business Tax Climate Index four consecutive years.

The Tax Foundation — a nonprofit, nonpartisan tax research organization based in Washington, D.C. — compiles the index to compare states for the competitiveness of their tax codes. The index takes into account a total of more than 100 variables in categories for property and sales taxes, individual and corporate income taxes and unemployment insurance. States with transparent and neutral tax codes fare better than states with complex tax codes that distort business decisions.

Colorado scored 5.19 in the 2019 State Business Tax Climate Index to rank 18th overall. That ranking hasn’t changed in four years.

For 2019, Colorado ranked the highest at 12th for its property tax structure as well as 14th for its individual income tax structure and 16th for its corporate income tax structure. Colorado ranked lower at 38th for its sales tax structure and 40th for its unemployment insurance structure.

Wyoming remained the most competitive state overall in the 2019 index, a ranking its held for four straight years. Wyoming also ranked first in the 2019 index in imposing no individual or corporate income taxes and sixth for sales taxes.

Alaska moved up a spot to second in the 2019 index. Alaska imposes no individual income or state-level sales taxes.

South Dakota ranked third, followed by Florida and Montana. South Dakota imposes no individual or corporate income taxes. Florida imposes no individual income tax. Montana imposes no sales tax.

New Jersey remained dead last at 50th in the 2019 index, followed by California, New York and Connecticut.

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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