CHARLESTON, W.Va. — West Virginia is ranked No. 21 overall in the Tax Foundation’s 2015 State Business Tax Climate Index.
Released Tuesday, the index is designed to be a gauge for business leaders, government policymakers and taxpayers of how state tax systems compare nationwide.
“We’re looking at all elements of taxes that apply to businesses,” said Scott Drenkard, manager of state projects for the Tax Foundation.
“We’ve got individual income taxes, corporate income taxes, sales, property and unemployment insurance taxes.”
According to the Index, this year’s 10 best states are:
1. Wyoming
2. South Dakota
3. Nevada
4. Alaska
5. Florida
6. Montana
7. New Hampshire
8. Indiana
9. Utah
10. Texas
According to the Index, this year’s 10 worst states are:
41. Iowa
42. Connecticut
43. Wisconsin
44. Ohio
45. Rhode Island
46. Vermont
47. Minnesota
48. California
49. New York
50. New Jersey
West Virginia was largely in the middle of the pack.
In a breakdown, the Mountain State was ranked No. 26 for individual income taxes, No. 25 for sales taxes, No. 23 for unemployment insurance taxes, No. 25 for property taxes and No. 17 for corporate taxes.
Of that last category, “We actually mention this, by name, in the report as being an example of good policy,” Drenkard said.
“The corporate tax rate (in West Virginia) in 2011 started a phase-down schedule from 8.5 percent, which was one of the more uncompetitive rates in the region, to this year, it’s 6.5 percent.”
He said it’s proof West Virginia is making changes for the better.
“We used to say to West Virginia, what’s the best thing you can do to improve your tax code? And we used to joke and say, ‘Well, just take Virginia’s tax code because it’s better and apply it to the state.’ That’s no longer the case anymore,” Drenkard said on Tuesday’s MetroNews “Talkline.”