Colorado ranks 20th 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 2015, but continues to fare well for its comparatively lower corporate and individual 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 2015, Colorado ranked highest at 12th for corporate income taxes, 16th for individual income taxes and 22nd for property taxes. Colorado ranked lower at 35th for unemployment insurance taxes and 43rd for sales taxes.
Wyoming remained the top-ranked state in 2015 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.
New Jersey fell a spot to become the lowest-ranked state in the 2015 index, followed by New York, California, Minnesota and Vermont. The lowest-ranked states impose comparatively high tax rates under what are often complex systems.