IndyOutlook: Tax Foundation ranks Nevada fifth in the nation for favorable business environment
By John Restrepo
The Nevada Independent
February 20th, 2018
It’s February of 2018 and we’re now less than a year away from the start of the next Nevada legislative session. Seems like a good time to talk taxes. State taxes, that is — we already looked at a version of the federal tax plan in our last Indy contribution.
The Tax Foundation has released its 2018 Business Tax Climate Index, and in it they found Nevada has the fifth most favorable tax environment for businesses. The index looks at five taxes – state income tax, sales tax, corporate tax, property tax and unemployment insurance tax – and weights them based on business impacts, then computes a score between 0 and 10 for each tax type and for the state overall (10 is the best possible score, achieved by not having the tax type in question).
Nevada’s 2018 score was 6.46, essentially unchanged since 2016. The passage of the Commerce Tax in 2015 knocked the state from the number 3 spot and dropped its index score by about one point. While the corporate tax structure is in the middle of the pack, its sales and unemployment taxes are near the bottom of the barrel. Nevada’s high ranking is due in large part to its absence of an income tax, which is given the most weight in the index, as well as relatively low property tax rates.
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