Dayton
Daily News...
Tax study: Ohio has
third-lowest tax burden for new business investments
By William Hershey
Wednesday, April 27, 2011
Only two states - Maine and Oregon - have lower tax burdens for new
business investments than Ohio, according to a new study released by
the Council on State Taxation, a business-backed group, in conjunction
with Ernst & Young, the professional services firm.
“Competitiveness of State and Local Taxes on New Investment” found that
Ohio has an effective tax rate of 4.4 percent on new investment, lower
than all states and the District of Columbia, except Oregon, with a 3.8
percent rate, and Maine, with a 3.0 percent rate, the lowest nationally.
The findings contrast with some other studies such as those done by the
Tax Foundation, which has issued negative findings about Ohio’s
business tax climate. The Tax Foundation in a report last year - 2011
State Business Tax Climate Index - rated Ohio 46th nationally in terms
of a favorable tax climate.
The new study, released Tuesday, focuses on capital investments in
industries that have location choices for factories and headquarters,
not on investments tied to specific locations such as hotels and
restaurants.
Tom Zaino, a former Ohio tax commissioner, said the new study reflects
the changes made in the 2005 overhaul of the Ohio tax code and which
finally have been fully phased in.
“This is now proving out,” said Zaino. “We are well positioned among
other states.”
States with lowest effective tax rates on new investment
*Maine, 3 percent
*Oregon, 3.8 percent
*Ohio, 4.4 percent
*Wisconsin, 4.5 percent
*Illinois, 4.6 percent
*Virginia, 5.4 percent
*New Hampshire, 5.4 percent
*Delaware, 5.7 percent
*Wyoming, 5.8 percent
*Minnesota, 6 percent
States with highest effective tax rates on new investment
*West Virginia, 9.7 percent
*Alabama, 9.7 percent
*Mississippi, 10.2 percent
*Tennessee, 10.3 percent
*Hawaii, 10.8 percent
*Louisiana, 11.1 percent
*Kansas, 11.2 percent
*Rhode Island, 11.5 percent
*District of Columbia, 16.6 percent
*New Mexico, 16.6 percent
Read it at the Dayton Daily News
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