SFDF News & Information

According to Scott Hodge, president of the Tax Foundation, "every tax change will affect a state's competitive position relative to its neighbors, as well as globally."

Hodge believes that states like South Dakota, which give businesses a "level playing field" regarding taxes, offer a more attractive long-term investment to companies seeking to relocate to maximize profits. States which utilize packages of tax bonuses, rebates or abatements to lure high-profile businesses often end up losing not only the taxes, but the businesses themselves, Hodge said.

The index rewards tax codes that are neutral for business, focusing on corporate and personal state income taxes, sales or gross receipts taxes, unemployment insurance tax and the state’s fiscal balance.

Rounding out the top ten most business-friendly states after South Dakota were Florida, Alaska, Texas, New Hampshire, Nevada, Wyoming, Colorado, Washington and Oregon.

Minnesota finished in the bottom three states: Hawaii, New York and Minnesota have the least hospitable tax climates in the US, according to the Tax Foundation.

To view the full survey, visit www.taxfoundation.org.