Report lists most business-friendly states

WASHINGTON, Oct. 10, 2007 -- The Tax Foundation has released its 2008 State Business Tax Climate Index, which ranks how "business friendly" the 50 state tax systems are, providing a roadmap for state lawmakers concerned with keeping their states tax-competitive.

Maryland came in at No. 24.

Read the complete report here.

Keeping a state competitive in today's global market can be difficult, but there is one factor lawmakers have direct control over: the quality of state tax systems. The Index measures how well a state's tax system encourages investment by maintaining a broad tax base and low rates.

"There's no question that states are competing with one another for companies, jobs, and people," said study co-author Curtis Dubay. "Taxes matter to businesses, and the states with better business tax climates will reap the rewards.

"States need to constantly be on the lookout for ways to improve their business tax climates," Dubay added. "If they're standing still, they're losing ground to states actively improving their climates."

The Index ranks states based on the taxes that matter most to businesses and business investment: corporate tax, individual income tax, sales tax, unemployment tax and property tax. The states are scored on these taxes, and the scores are weighted based on the relative importance or impact of the tax to a business.

The top 10 states

1. Wyoming

2. South Dakota

3. Nevada

4. Alaska

5. Florida

6. Montana

7. New Hampshire

8. Texas

9. Delaware

10. Oregon

The bottom 10

41. Maine

42. Minnesota

43. Nebraska

44. Vermont

45. Iowa

46. Ohio

47. California

48. New York

49. New Jersey

50. Rhode Island

The Index has been published yearly by the Tax Foundation since 2003. The full report includes historical data showing how the states have changed their rankings over time.

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