We’ve got the Arizona Cardinal, the D-Back Mega Dog, the best Mexican food in the southwest, and the best sunsets in the country. But do we have anything to cheer about when it comes to business taxes? Well, according to the Tax Foundation’s yearly report, Arizona continues its climb toward the top of the best place to do business.
Moving up from 27th place in 2015 to 24th place in 2016, Arizona showed promise in the tax race. Now the new Tax Report moves Arizona up to 21st. Yes, we realize that we’re still considered the middle of the pack, but as Arizona enthusiasts, we love to see our state constantly improving business taxes here in the valley of the sun.
Business Taxes Report
The Tax Foundation reports that the “State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure their tax systems and provides a roadmap for improvement”.
And while we haven’t made the top 10 yet, Arizona did get a notable mention in the report:
“Arizona is in the process of lowering its corporate income tax rate. Scheduled annual rate reductions began in 2015 and will continue through 2018, with the rate declining from 6.0 to 5.5 percent in 2016. The first reduction helped the state improve three places on the corporate income tax component, and this year’s reduction moved the state a further three places on the corporate component, from 22nd to 19th, with the state’s overall rank improving from 22nd to 21st. The cuts have been aided by limitations on credits and other business taxes preferences, which have helped pay down rate reductions.”
Overall, we have seen a huge difference in the number of businesses flocking to the Sonoran desert. Intel, GoDaddy, Wells Fargo, Amazon, and many others have all set up hubs around the valley and more are on their way. According to a recent study from Spectrum Location Solutions, Arizona was one of the top destinations for relocating California businesses over the last seven years. Texas, Nevada, Colorado, and Washington joined Arizona in the top five states.
This means $68 billion has been diverted to other states. As a result, living conditions, employment options, and the general quality of living in Arizona continue to rise making it a highly desirable place to live and work.
“Whether it’s loosening government’s grip on job creators with light regulations and low taxes, embracing 21st-century innovation or simply promoting our unbeatable quality of life – businesses have taken notice. There’s a lot of work to do to get to No. 1 – but we’re moving in the right direction, and becoming the preferred spot for companies looking for a better opportunity,” says governor Doug Ducey.
Arizona strives to be the best place for businesses and is doing a great job of moving up the ranks. Competition still abounds from top winners Wyoming (1), South Dakota (2), Alaska (3), Florida (4), and Nevada (5), where the absence of a major tax is the common factor. And yet, Arizona does rank higher in the corporate tax category than two of the top seeds (Alaska 27 and Nevada 34) and tied with Florida at 19.
Overall Arizona is a great place to live and do business. And, according to ongoing reports is poised to continue the march towards number one!
Business Taxes Help with PayTech
As the resident tax experts in Arizona, we can help you decipher the tax codes so your business can take full advantage of the tax laws that are set in place to help you succeed. Tax and payroll service can be automated so that you don’t have to fret about filings, deadlines, mailing, and all of the other paraphernalia associated with taxes. At PayTech we take pride in helping small business properly execute one of their most critical parts of business. With a trusted tax expert assigned specifically to your company, you can count on professional service that knows your business inside and out. It’s like having an accounting team on staff, without paying outrageous salaries. Check us out online today!