Mo. ranks No. 17 nationally in tax competitiveness index

Missouri has the 17th most competitive tax code in the U.S., according to the 2016 State Business Tax Climate Index compiled by Washington, D.C.-based tax policy research think tank Tax Foundation.

Bookending the overall rankings were Wyoming at No. 1 and New Jersey at No. 50.

The rankings are part of the Tax Foundation’s 12th edition of the index, which measures the structure of each state’s tax code based on more than 100 variables in the five tax categories of corporate, individual income, sales, property and unemployment insurance, according to a news release.

“The stagnation of our federal tax code means that policymakers are turning to state codes to boost their national and global competitiveness,” Tax Foundation policy analyst Jared Walczak said in the release. “The state codes are ripe for reform, and it’s encouraging to see many states taking action.”

Missouri climbed as high as No. 3 on the list for its corporate tax structure at 6.25 percent, bested by South Dakota and Wyoming, which tied at No. 1 for having no corporate tax rates.

Missouri’s ranking remains unchanged the 2015 index. The state previously held the No. 16 spot on the 2013 and 2014 indexes.

Other Missouri tax structures ranked in the 2016 index included:
    •    No. 8 for property tax structure;
    •    No. 12 for unemployment insurance tax;
    •    No. 23 for sales tax; and
    •    No. 28 for individual income tax.

According to the report, an income tax reduction from Senate Bill 509 passed by the Missouri General Assembly in 2014 and due to be implemented in 2017, which lowers the top income tax rate by 0.1 percent each year based on revenue conditions, would be reflected in the 2018 index.