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


Attorney General Slatery Names Solicitor General

Tennessee Attorney General Herbert Slatery announced that Andrée Sophia Blumstein will join the office as solicitor general.   Mrs. Blumstein will oversee appellate litigation in state and federal courts, review written opinions, and advise the attorney general. “I could not be more pleased that Andrée has accepted this important appointment,” Attorney General Slatery ... (click for more)

Northwest Georgia’s Unemployment Rate Falls To 7.1 Percent In September

The Georgia Department of Labor announced Thursday that the unemployment rate in the Northwest Georgia region in September was 7.1 percent, down 1.0 percent from 8.1 percent in August. The rate in September of last year was 7.8 percent. The rate dropped because there were 4,034 fewer unemployed people in the Northwest Georgia area in September, according to the federal government’s ... (click for more)

Mayor Berke, Chattanooga Police Department, And Community Members Reach Out To Group Members To End Violence

The city of Chattanooga held a call-in on Thursday night, as part of the Violence Reduction Initiative. Dozens of law enforcement officials, community members, social service providers and clergy gathered to deliver a message to over 20 members of violent groups in Chattanooga. Family members of the probationers watched the call-in from another building. Although the call-in was ... (click for more)

Man Airlifted To Erlanger After Early Morning Crash In Bradley County

Bradley County EMS responded to an early morning crash Thursday at 7 a.m. at the intersection of Lauderdale Memorial Highway and Walker Valley Road in Charleston. Three ambulances and an EMS supervisor responded to the scene. There were three vehicles involved and one car left the roadway.   One adult man suffered serious injuries and it was determined that he needed ... (click for more)

Chairs Cost How Much?

Many times while growing up, I would go to the store with my parents. More often than not, I would see something I wanted, and ask my parents to buy it for me. More often than not, they said no. “Why?” I asked. “Son, money doesn’t grow on trees.” That’s a phrase I’m sure many of us have heard more than once over the course of our lives. However, I have since learned that they were ... (click for more)

Roy Exum: My Dear Friend Luther

One sunny morning in June years ago, the renowned radio icon Luther Masingill was on his way back to the WDEF studios on South Broad Street when he stopped for a red light and noticed a young couple in a car idling next to his familiar light blue Ford pickup. “What caught my eye was a buck-toothed boy eating a banana in the back seat,” he explained in an aside to that day’s lunchtime ... (click for more)