Colorado ranks among the 10 most entrepreneur-friendly states in the latest analysis of how policies affect small businesses.
Colorado ranks ninth in the 2014 Small Business Policy Index compiled by the Small Business & Entrepreneurship Council.
The small business advocacy and research group takes into account a total of 42 tax, regulatory and government spending measurements in calculating a combined score that offers state-by-state comparisons.
“Policies clearly affect the environment for investment, entrepreneurship and small business growth,” said Karen Kerrigan, president and chief executive officer of the SBEC.
Raymond Keating, chief economist for the group and author of the analysis, agreed. “Make no mistake, tax, regulatory, government spending and other governmental performance and cost measures matter state by state.”
Colorado posted a score of 62.754, mostly on the basis of comparatively low taxes. With a top rate of 4.63 percent, Colorado imposes the ninth lowest corporate income taxes and 11th lowest corporate capital gains taxes. Colorado ranks 10th for the lowest state diesel taxes and tied for the 15th lowest state gasoline taxes.
Colorado ranked highest at second for revenue from the federal government as a share of state and local revenue.
Colorado fared less well in the analysis in ranking 35th for state and local property taxes and 44th for the five-year trend in state and local government spending.
South Dakota ranks first in the 2014 Small business Policy Index, followed by Nevada, Texas, Wyoming, Florida and Washington. Five of the top six states impose no personal or corporate income taxes. Florida imposes no personal income taxes.
California ranked dead last in the 2014 index, followed by New Jersey, New York, Hawaii and Minnesota.