Businesses looking for a state with low taxes and high possibilities need to look no further than Missouri.
Missouri is showing the nation how to create a more competitive tax code—one that now offers the tenth-lowest effective rates for new businesses, according to a new analysis conducted by the Tax Foundation and KPMG LLP titled Missouri’s Tax Competitiveness.
“Lower taxes mean new business investments and more money in Missourian’s pockets,” said Missouri Governor Mike Parson. “By using common sense and responsible spending practices, our administration has already cut taxes twice and is always exploring ways to ease tax burdens. We want to remain competitive so that we can continue to bring new businesses and job opportunities to Missourians, and this recognition shows that we are on the right track.”
Location Matters compares corporate tax costs in all 50 states across eight model firms: a corporate headquarters, a research and development facility, a technology center, a data center, a shared services center, a distribution center, a capital-intensive manufacturer, and a labor-intensive manufacturer. Each firm is modeled twice, first as a new operation eligible for tax incentives and then as a mature operation not eligible for such incentives.
According to the report, Missouri offers particularly attractive tax rates to data centers, shared services centers, and labor-intensive manufacturers, as well as newly established technology centers. While most other firms experience more middle-of-the-pack burdens, Missouri is notable for avoiding disproportionately high taxes on any of the industries we studied. In fact, the state ranks 10th overall for new operations.
“While Missouri has room for improvement, the state is making waves, positioning itself as an increasingly attractive location for business investment,” said Jared Walczak, Vice President for State Projects at the Tax Foundation. “And as ongoing reforms further enhance the competitiveness of the state’s tax code, more businesses will take notice.”