Tennessee Ranked 15th On State Taxes

Wednesday, October 09, 2013

The tax climate of Tennessee ranked 15th this year out of all 50 states, according to a new report by the Tax Foundation. The Volunteer State’s rank remains unchanged from 2013 the 2014 State Business Tax Climate Index.

Several states have moved in the rankings since last year, with Texas dropping out of the top ten for the first time, landing at #11, and Virginia and Kentucky both falling three places to #26 and #27, respectively. On the positive side, Arizona climbed five ranks to #22 and Kansas shot up six spots to #20. Several other states also saw smaller changes.

“The states that lost ground this year usually did so because they changed policy in a way that makes the tax code more complex, burdensome, or economically harmful,” said Tax Foundation economist Scott Drenkard. “By contrast, the states that improved did so because they are moving closer to a tax code that collects revenue without unnecessarily distorting business decisions. Their tax codes became more neutral.”

The State Business Tax Climate Index, now in its 10th edition, collects data on over a hundred tax provisions for each state and synthesizes them into a single, easy-to-use score. The states are then compared against each other, so that each state’s ranking is relative to actual policies in place in other states around the country. A state’s ranking can rise or fall significantly based not just on its own actions, but on the changes or reforms made by other states.

The top ten states in 2014 are Wyoming (#1), South Dakota (#2), Nevada (#3), Alaska (#4), Florida (#5), Washington (#6), Montana (#7), New Hampshire (#8), Utah (#9), and Indiana (#10).

The 10 lowest ranked states in 2014 are Maryland (#41), Connecticut (#42), Wisconsin (#43), North Carolina (#44), Vermont (#45), Rhode Island (#46), Minnesota (#47), California (#48), New Jersey (#49), and New York (#50).

“The goal of the State Business Tax Climate Index is to start a conversation with policymakers about how their states fare against the rest of the country,” said Drenkard. “With this report, we’re asking: ‘how well is your tax code structured? Are businesses in your state spending too much time complying with onerous tax provisions? Are you double taxing things you shouldn’t?’”

Tax Foundation Background Paper No. 68, “2014 State Business Tax Climate Index” by Scott Drenkard and Joseph Henchman is available online.

The Tax Foundation is a nonpartisan research organization that has monitored fiscal policy at the federal, state and local levels since 1937. To schedule an interview, please contact Communications Associate Richard Borean at 202 464-5120 or borean@taxfoundation.org


Local Vapor Store Expands; Creates Premium Chattanooga-Inspired EJuices

After opening on June 12, the locally-owned Chattanooga Vapor Company has continued to thrive at its North Shore locations off of Frazier Avenue and in Soddy Daisy, at the corner of Dayton and Thrasher Pike. No matter where one falls within the company’s three-step process, they ensure each individual’s needs are met. Its focus on helping people quit smoking and using tobaccos is ... (click for more)

HTI Employment Solutions Job Fair Draws Over 500 Applicants And Counting

HTI Employment Solutions is holding its first job fair in Chattanooga on Thursday, from 10 a.m.-7 p.m.   at Embassy Suites Hotel at 2321 Lifestyle Way near Hamilton Place Mall. The company was awarded the bid to staff 300 positions created by Tier 1 Automotive Supplier and will staff ... (click for more)

Lookout Mountain, Ga., Raises Sewer Rates; Joins In Kudzu Fight

The Lookout Mountain, Ga., City Council on Thursday night approved an increase in sewer charges. The council approved ordinance 281 increasing sewer rates to $6 per 100 cubic feet of water from the previous rate of $4.77.  The new increase will be in effect in January 2015.    City Manager Brad Haven said the town will be replacing the flow meter for ... (click for more)

Police Investigating An Armed Robbery On Friday Night At UTC

UTC Police are investigating with the Chattanooga City Police an armed robbery in Lot 4 near Boling Apartments on Friday night. The suspects are described as two black men.  One was six feet tall, wearing a navy jacket, with medium skin tone and short hair.  The other suspect was reported to be 5’ 7”, wearing blue jeans and a long white T-shirt. The second suspect ... (click for more)

Don't Allow Us To Be Overrun By People Who Do Not Belong Here - And Response (6)

Thank you, Senator Corker, for your clear, concise evaluation of the president's attempt to bypass Congress and personally and independently establish national policy that violates our current immigration laws.   Our long-standing failure to enforce our laws to control illegal immigration across our southern border has made this country less safe and ... (click for more)

Roy Exum: Our Tubman Goat-Roping

Every spring there comes a bright day on the ranch when the straw-boss decrees a goat-roping should take place. What really happens is the veteran cowboys arm the greenhorns with some lariats late in the afternoon and take them to the pen that holds some Billy goats. This is before they get into bigger beasts -- horses and cattle – yet what appears to be easy most certainly is not. ... (click for more)