Report: MO ranks 16th for business tax climate

Missouri ranked No. 16 in the 2013 State Business Tax Climate Index, a report conducted by the Tax Foundation that measures tax effects on the competitiveness of states' business environments.

Missouri fell from the No. 15 spot in last year's report, according to the Washington, D.C.-based Tax Foundation.

The state moved up three spots to No. 6 for its unemployment insurance tax, up one spot to No. 6 for low property taxes, held its No. 8 spot for low corporate tax rates and was flat at No. 6 for property taxes, according to a news release from the Missouri Partnership, a nonpartisan, statewide organization focused on economic development.

“With its ranking at 16th, Missouri was in the top half for all components in this year’s study,” said Scott Drenkard, economist at the Tax Foundation and author of the report, in the release. “Missouri is in the process of phasing out its franchise tax, a good move for attracting and growing businesses.

“In particular, Missouri is favorable for businesses because of its good property and corporate tax rates, and unemployment insurance.”

Missouri dropped a spot to No. 24 for its individual income taxes and fell a spot to No. 27 for sales taxes, according to the report.

According to the Tax Foundation, states with better business tax climates are more successful in bringing in business, creating jobs and fostering economic growth. In the report, Missouri ranked higher than seven of its eight surrounding states - Illinois, Arkansas, Iowa, Kansas, Kentucky, Nebraska and Oklahoma.