Georgia 34th friendliest for business taxes

Lawmakers and others hoping to make Georgia more attractive to employers won’t be heartened by a new report that assesses the state’s business tax climate.

Georgia ranked 34th among states in its “business-friendliness,” according to the Tax Foundation, a non-partisan tax research group based in Washington. That puts it behind Southeast neighbors including Florida (No. 5), Tennessee (No. 14), Mississippi (No. 17) and Alabama (No. 20), as well as Far West states including the top three, Wyoming, South Dakota and Nevada, and even old-line manufacturing centers including Michigan (No. 18) and Pennsylvania (No. 19).

Tax Foundation economist Mark Robyn noted that, “Even in our global economy, a state’s stiffest competition often comes from other states. State lawmakers need to be aware of how their states’ business climates match up to their neighbors and to other states in their region.”

The State Business Tax Climate Index, in its eighth edition, incorporates dozens of tax elements into a single score, then ranks states by that score. It focuses “on how the elements of a state tax system enhance or harm the competitiveness of a state’s business environment.”

Georgia fared poorly in tax components including individual income tax, where it ranked No. 40,  and its property tax, where it ranked No. 39. It did better in corporate tax (No. 9) and in sales tax (No. 12).

While some states rankings changed from last year, Georgia stayed in place.

5 comments Add your comment

Bob Walters

January 27th, 2012
11:05 pm

40th in income tax and 39th in property tax says it all. The only companies willing to relocate to Georgia are those that pay so low their employees cannot afford to own a home. No wonder Atlanta’s real estate market is next to the bottom in the country.


January 28th, 2012
6:44 pm

At least GA isn’t 50! #34!!! YES!!!! They doing it right in the legislature!!! YES!!!!

Road Scholar

January 29th, 2012
9:15 am

No 9 in corporate and sales tax is No 12. But Income tax is 40th and property tax is 39th. But our repubs want more business tax breaks? What? And they want to increase the sales tax on items not covered?

It appears that they are not for the citizens but in the businessman’s pocket. Wake up Georgia!!!


January 30th, 2012
11:47 am

We’d have to rank pretty low in business friendliness in terms of licensing as well. 4 to 6 weeks to get a state liquor license; 4 to 6 weeks to get approved as a lottery retailer. . . most of the time built in there is wait time. Who loses? Not only do we not get to sell to our customers – but you and I are losing out by those taxes not being collected and paid. And, the sad thing is, the state doesn’t seem to care that it’s a nightmare to do all the paperwork.


January 30th, 2012
1:27 pm

I’m not sure what they base these rankings on, but I own a business and have a branch in TN and a branch here. I absolutely hate dealing with TN. There is so much red tape in TN. There are so many different licenses and taxes there that its hard to keep track. They may not have personal income tax, but they make up for it in other ways, trust me. They also charge way more for their state unemployment tax than GA.