Business principals of an entity casting its net across the United States in search of a corporate home that offers strong commercial benefits might likely start scrutinizing Arizona if they come across a report issued by The Tax Foundation.
That group — a District of Columbia-based think tank that conducts research on tax policies — published study findings late last month that offer a state-by-state comparative examination of tax treatment doled out to companies. The foundation’s conclusions might be useful to any organization looking for statistical data germane to business prospects.
Obviously, state business taxation is an overriding — in fact, a flatly huge and often dispositive — factor affecting company location and other considerations.
How does Arizona fare?
Bottom line: Pretty well, especially in select areas.
The foundation’s analysis focuses upon a number of different types of businesses, rating them on taxation affecting their income, sales, property and unemployment insurance, respectively.
One stand-out business prospect in Arizona from a taxation standpoint, reports the foundation, is the call center industry, which reportedly has the third lowest state tax rates in the country.
An additional finding indicates that, if you’re a business owner looking at Arizona as the locale for your corporate headquarters, you could do far worse; the state is ranked 15th in this category. Moreover, Arizona scores out comparatively well for companies engaged in research/development activities and manufacturing, as well as a central site for distribution centers.
Even the tax-related scores for the area where Arizona fares worst — independent retail stores — show the state as offering advantages that lack in the majority of other states. Arizona ranked 24th in that category.
A final and notable takeaway point from the foundation’s analysis is that Arizona authorities often apply different tax rates to older and newer businesses, respectively, with more established companies getting a better deal in this important sphere.
Call Cook & Price, PLC today at 480-407-4440 or email us through this website.