Tennessee Ranked 15th On State Taxes

Wednesday, October 9, 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


Justin Robinson State Farm Celebrates Grand Opening Feb. 2

Justin Robinson State Farm will celebrate a grand opening with a ribbon cutting ceremony on Thursday, Feb. 2, at 11 a.m. at 1459 North Mack Smith Road.  The Chattanooga Area Chamber of Commerce will co-host this event with Justin Robinson State Farm.  Mr. Robinson said he has made it his life goal to serve the East Ridge and Chattanooga community with his ... (click for more)

BlueCross Taps Lawrence As Director of Ancillary, Behavioral Contracting

BlueCross BlueShield of Tennessee selected Scot Lawrence as director of ancillary and behavioral health contracting. In this role, Mr. Lawrence is responsible for defining and directing state-wide contracting strategies and negotiations for ancillary providers, including lab, home health, skilled nursing, and dialysis providers, as well as behavioral health providers such ... (click for more)

School Board Votes To Issue RFPs For Private School Bus Service; Allows Independent Drivers To Add 20 Routes

The Hamilton County School Board voted unanimously to issue a Request-for-Proposals (RFP) to private bus companies at a special-called session early  Saturday  afternoon.   The vote came at the end of a two-day strategy session where the school board has confronted a list of challenges but the busing question, spurred by the tragic bus wreck in November ... (click for more)

3 People Shot Early Saturday Morning On East 3rd Street

Three people were shot on East 3rd Street early Saturday morning. They were identified as Countess Clemons, 24, Kezia Jackson, 23, and Dutchess Lykes, 26.   The Chattanooga Police Department responded at 2:40 a.m. to a person(s) shot call at a local hospital. All three victims were transported to the hospital via a personally-owned vehicle.   All three ... (click for more)

A Light Rain Began To Fall - And Response (2)

Around noon Friday, Jan. 20, 2017, Donald J. Trump was sworn in as the 45th President of the most powerful nation on Earth after a long and sometimes bitter campaign where 17 GOP candidates of his own party and two of the opposing party competed for the honor.   Thousands rejoiced in the Washington D.C. streets while policemen who had come along with national guardsmen pushed ... (click for more)

Roy Exum: Jumoke’s Thuggery Ends

Jumoke Johnson, the most notorious criminal in Chattanooga’s recent history, was killed by a rain of bullets in the 2100 block of East 12 th Street at little after 8 o’clock Friday night and for the many of us who have kept up with the 23-year-old, you wonder how he ever lasted this long. He was aptly proclaimed as the “most dangerous man” to ever have been sentenced in Chattanooga’s ... (click for more)