Tax Foundation Ranks Missouri 10th Best State for New Firms; 4th for New Manufacturing
- May 05, 2021
The Tax Foundation, in collaboration with KPMG LLP, today released a new report called “Location Matters.” This comprehensive study ranks state corporate tax costs across multiple industries nationwide.
“We are thrilled that Missouri is 10th in the nation for firms looking to establish a new presence within a state,” Subash Alias, CEO of Missouri Partnership, said. “And our ranking as 4th in the nation for new labor-intensive manufacturing facilities confirms that Made in Missouri is a solid decision for growing companies looking for their next location.”
Missouri ranks 18th best for mature firms. In 2015, the last time this study took place, Missouri ranked 26th for new firms and 27th for mature firms.
In addition to high rankings in general and in manufacturing, Missouri also ranks 7th for mature data centers, 13th for new distribution centers, 14th for new technology centers, and 15th for new shared services centers.
“Many existing state competitiveness rankings only measure business tax collections as a share of total tax revenue,” said the Tax Foundation in their press release announcing the study’s publication. “Others look at what tax incentives are in place to try and lure in business. Our approach in this guide is novel because it looks at real costs: What is a business going to pay in yearly taxes in each state, what burdens will that business face when it’s new, and what tax costs are going to be in play as it matures?”
The 2021 report can be accessed at https://taxfoundation.org/publications/location-matters/. The previous report was released in 2015 and Missouri’s attractiveness for expanding companies improved across the board since then, partially due to its new 4 percent corporate tax rate which ranks Missouri second among states that levy such a tax.
About Missouri Partnership
Missouri Partnership is a public-private economic development organization focused on attracting new jobs and investment to the state and promoting Missouri’s business strengths. Since 2007, Missouri Partnership has worked with partners statewide to attract companies that have created 27,000+ new jobs, $1.3 billion+ in new annual payroll, and $3 billion+ in new capital investment. Some recent successful projects that led to major investment in Missouri include Accenture Federal Services LLC, Amazon, Casey’s General Stores, Chewy, Inc., Square, USDA, and Veterans United.