Companies are increasingly taking advantage of this opportunity, particularly in Cheyenne. The small town of just 60,000+ residents, located in the southeast corner of the state, has easy access to Denver, Colorado and sites in Nebraska. It has been emerging over the last year as a data center hub with deals inked by Microsoft, EchoStar and Green House Data.
CEOs gave Idaho the second highest rating for its tax and regulatory environment, despite the fact that the state’s corporate tax rate is 7.40%. Idaho has the highest corporate tax rate of any state on the list. So what’s the difference? “States like Wyoming, Montana and Idaho may attract relatively few migratory companies, but continue quietly nurturing their own home-grown industries—crops, cattle, minerals, fuel, light manufacturing—while maintaining their traditional sense of independence and resistance to government overreach and regulatory creep,” Warren Strugatch noted in Chief Executive’s latest Regional Report on the Western states.
Like Wyoming, South Dakota also has a 0% corporate tax rate, yet CEOs ranked it 8th out of 10. The Tax Foundation puts it higher, ranking South Dakota’s state and local tax burden 3rd-lowest out of 50 states and 2nd in business tax climate.
South Dakota’s economy grew 0.6% in 2014, well below the national 2.2% rate. In April, the state passed a law that e-commerce companies could be sued for tax revenue. S.B. 106 affects any organization that sells at least $100,000 worth of products into the state or completes at least 200 separate transactions. This could be a possible future growth deterrent.
Of the top 10 list, just two states—Utah and North Dakota—have corporate tax rates at or below 5%. The three remaining states—Tennessee, Florida and Indiana, capped their rates at 6.50%, 5.50% and 6.50%, respectively.
Note: Regional data was sourced from Chief Executive’s Regional Reports. The Regional Reports are written by Warren Strugatch.
Review the entire 2016 Best & Worst States for Business survey, including individual state rankings, CEO comments, methodology and more at https://chiefexecutive.net/2016-best-and-worst-states-for-business