According to the Tax Foundation’s State Business Tax Climate Index, Florida is the fourth-most business-friendly state in the country! The State Business Tax Climate Index is a yearly report that measures how competitive each state’s tax code is. It measures over 100 variables in five categories and assigns each state a ranking out of 50. Here’s how it works: states rise or fall based on how transparent their tax codes are. Competitive tax codes allow businesses to spend less time and effort on breaking down their taxes and also help them save money. Well-structured tax systems also keep shady business owners from “cheating the system”. This year, Wyoming occupies its usual spot at the top of the list, with New Jersey at the bottom.
States with complex tax codes tend to sink in the rankings, but can redeem themselves by reforming their tax systems. For example, Pennsylvania jumped from 28th to 24th simply by getting rid of its capital stock tax. So how do we Floridians always fare so well? Years ago, Florida did away with state income and estate taxes. We also have no taxes on intangibles such as investments. This makes it much easier for businesses to do their thing without fussing over paperwork every tax season. It also makes our state look great to businesses because they get to keep more of their money. If you’re a business owner looking to move to Florida, this is great news!
The Tax Foundation is a nonpartisan research group devoted to informing the public about tax policy. They publish the State Business Tax Climate Index yearly. The goal of the Index is to keep taxpayers and business owners informed of how their state’s tax system stacks up. It is also hoped that the Index will spark conversation between taxpayers and policymakers, and give insight into how states can improve. The Index can even track trends state-by-state. Keep an eye out for the report each year to keep yourself up-to-date on where your hard-earned money is going!
Relocating to Ocala seems to be the right move for business owners. Call for your commercial real estate needs. 352-351-4718.