RI Falls in Ranking in Tax Foundation's Business Tax Index
GoLocalProv Business Team
RI Falls in Ranking in Tax Foundation's Business Tax Index
The Tax Foundation’s State Business Tax Climate Index for 2023 is out -- and Rhode Island has slipped in the rankings.
According to the Foundation, the index "enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare...[and] is designed to show how well states structure their tax systems and provides a road map for improvement."
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe 10 best states in this year’s Index are:
1. Wyoming
2. South Dakota
3. Alaska
4. Florida
5. Montana
6. New Hampshire
7. Nevada
8. Utah
9. Indiana
10. North Carolina
The Foundation writes: "The absence of a major tax is a common factor among many of the top 10 states. Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate income tax, the individual income tax, or the sales tax. Nevada, South Dakota, and Wyoming have no corporate or individual income tax (though Nevada imposes gross receipts taxes); Alaska has no individual income or state-level sales tax; Florida has no individual income tax, and New Hampshire and Montana have no sales tax."
The 10 lowest-ranked, or worst, states in this year’s Index are:
41. Alabama
42. Rhode Island - in 2018, RI was ranked 38th and in 2022 it was ranked 40th
43. Hawaii
44. Vermont
45. Minnesota
46. Maryland
47. Connecticut
48. California
49. New York
50. New Jersey
Neighboring States:
#6 New Hampshire
#34 Massachusetts
#35 Maine
#44 Vermont
#47 Connecticut
"The states in the bottom 10 tend to have a number of afflictions in common: complex, nonneutral taxes with comparatively high rates. New Jersey, for example, is hampered by some of the highest property tax burdens in the country, has the highest-rate corporate income taxes in the county, and has one of the highest-rate individual income taxes. Additionally, the state has a particularly aggressive treatment of international income, levies an inheritance tax, and maintains some of the nation’s worst-structured individual income taxes," said the Tax Foundation.