Full Tax Competitiveness Study Released By State Chamber

We told you a few weeks ago about a new study prepared by Ernst & Young for the Arkansas State Chamber of Commerce, which measured Arkansas’ corporate tax burden on new investments compared to seven nearby states.

An executive summary report was presented to Arkansas lawmakers at an interim Joint Revenue and Tax Committee meeting on Thursday (Nov. 17).

WHAT WAS MEASURED
Arkansas’ state and local tax burdens on new business investments were compared to tax rates in Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas.

The Ernst & Young study measured the “effective tax rate” (ETR) in the 8 states. ETR included before-tax rates and after-tax rates to allow for tax credits, which can affect a state’s business tax competitiveness.

The tax calculations only included corporate income taxes, franchise taxes, sales and use taxes on business purchases, and local property taxes.

The report also considered different types of companies that might make business investments, such as corporate headquarters, research and development, manufacturing, food processing, renewable energy and business support services.

Arkansas did not rank first in any of the measured categories. Today, the State Chamber released the full report, which you can read at this link.