Missouri Tax Structure Named Most Competitive in South Central Region
Missouri has the most competitive tax structure for businesses in the south central region, according to a recent study by Ernst & Young. The study, prepared for the Arkansas Chamber of Commerce, ranked Missouri highest in five of the eight business categories examined.
“Missouri is committed to driving economic growth and keeping the tax burden low for our business owners,” said Christopher Chung, CEO of the Missouri Partnership. “The Governor and Missouri General Assembly deserve all the credit for proactively laying the groundwork for economic success through targeted investments and performance-based incentives that encourage new business growth and job creation.”
The report examined the effective tax rate, after statutory tax credits, in Arkansas and its seven neighboring states – Kansas, Oklahoma, Texas, Louisiana, Mississippi, Tennessee, and Missouri. Specific taxes evaluated in the report included corporate income taxes, franchise taxes, sales and use taxes on business purchases, and local property taxes. The types of companies considered in the report included corporate headquarters, research and development, manufacturing, food processing, renewable energy, and business support services.
National recognition for its favorable tax climate is nothing new to the state of Missouri.
· Missouri was recently cited by the U.S. Chamber of Commerce as the seventh best state for taxes and regulation.
· In 2011, CNBC ranked Missouri as the third best state in the nation for cost of doing business.
· Missouri came in at number 8 in the Pollina Corporate Top 10 Pro-Business States for 2011, an annual study considered the most comprehensive in the economic development industry.
The Ernst & Young report noted that Missouri averaged 27 percent in tax credits, the highest of the states studied and a major indicator in the state’s top ranking.
“Our robust range of industries – automotive, renewable energy, R & D, information technology, business services, and advanced manufacturing – is a testament to Missouri’s pro-business philosophy,” Chung noted. “Our plan is to further enhance Missouri’s competitive business climate in the coming year.”
In 2011, Missouri became home to several companies, including Aero-Tech Laboratory Equipment Company, Data Systems International Inc., Card Compliant, Doyle Equipment Manufacturing, Applebee’s International, Olympic Steel, Inc., and Flex-N-Gate. Additionally, Ford and GM recently announced major expansions at the Claycomo and Wentzville, Mo. plants, respectively, for a total investment of $1.5 billion.
About The Missouri Partnership
The Missouri Partnership is a public-private, non-profit corporation with the principal mission of recruiting new business investment to the state. Through collaborative efforts with state and local partners, the Missouri Partnership works to attract new companies by marketing the state’s business advantages. For more information, please visit www.missouripartnership.com.