The Center Square [By Jon Styf] –
Tennessee ranked 33rd in the country in property tax obligations, according to a new analysis from the Tax Foundation.
Tennessee was 34th the past two years in the analysis, which is part of The Tax Foundation’s Business Climate Index. Tennessee ranked eighth overall in business climate, in large part due to not having an individual income tax. Property tax makes up 14.4% of the ranking.
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“Property taxes matter to businesses for several reasons,” the analysis said. “First, businesses own a significant amount of real property, and tax rates on commercial property are often higher than the rates on comparable residential property. Many states and localities also levy taxes not only on the land and buildings a business owns but also on tangible property, such as machinery, equipment, and office furniture, as well as intangible property like patents and trademarks.”
Only Mississippi (38th) ranked worse in property taxes than Tennessee amongst the eight states that border it. Missouri (eighth), North Carolina (13th), Alabama (19th), Kentucky (22nd), Georgia (25th), Virginia (26th) and Arkansas (27th) were better.
Indiana ranked first.
“States are in a better position to attract business investment when they maintain competitive real property tax rates and avoid harmful taxes on tangible personal property, intangible property, wealth, and asset transfers,” the report said.
In the Business Climate Index, Tennessee ranked 46th in sales tax burden but was 20th in unemployment insurance tax and 26th in corporate tax. A No. 6 mark in individual income tax lifted it into the overall top 10.
About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.