North Carolina business climate ranks higher in national report
by CCED, on 9/29/16 11:43 AM
More good news for North Carolina business...
The state rose from 14th to 11th place in the The Tax Foundation’s 2017 State Business Tax Climate Index.
The annual report by the nonpartisan, pro-business Washington think tank is based on five tax categories: corporate, individual income, property, sales and unemployment insurance.
In a statement, Governor McCrory said: “This ranking is further evidence that our pro-growth tax reforms saving families and business more than $4.7 billion, paying off the $2.5 billion federal unemployment debt ahead of schedule and our excellent quality of life make North Carolina a global destination for business.”
The breakdown of North Carolina’s rankings this year is as follows:
- Overall tax climate #11
- Corporate tax structure #4
- Individual income tax structure #15
- Sales tax structure #19
- Property tax structure #31
- Unemployment insurance tax structure #6
Here's what the report had to say about North Carolina:
After the most dramatic improvement in the Index’s history—from 44th to 15th in one year—North Carolina has continued to improve its tax structure, and now imposes the lowest-rate corporate income tax in the country at 4 percent, down from 5 percent the previous year.
This rate cut improves the state from 6th to 4th on the corporate income tax component, the second-best ranking (after Utah) for any state that imposes a major corporate tax. (Six states forego corporate income taxes, but four of them impose economically distortive gross receipts taxes in their stead.) An individual income tax reduction, from 5.75 to 5.499 percent, is scheduled for 2017.
At 11th overall, North Carolina trails only Indiana and Utah among states which do not forego any of the major tax types.