Missouri ranks among the best states for business taxes in the country, an annual report states.
The Show-Me State ranked No. 11 on the Tax Foundation's 2023 State Business Tax Index, a yearly run-down of states' tax systems and structures. Missouri ranked in the top four states for corporate income taxes and seventh best in terms of its overall property tax rate.
"Missouri steadily remains one of the best overall states for business taxes in the country -- and a top contender in the Midwest -- earning a spot in the top 15 states for the fourth consecutive year," a news release from Missouri Partnership read.
Missouri ranked above all of its surrounding states in the overall ranking, with Tennessee coming in at No. 14, Kentucky at No. 18, Oklahoma ranking No. 23, Kansas No. 25, Nebraska taking the No. 29 spot, Illinois ranking No. 36, Iowa ranking 38th and Arkansas reaching the 40th spot.
Arizona took the top spot in the ranking, while New Jersey ranked at the bottom of the list.
The Show-Me State has risen in the ranks in several categories over the years, rising from No. 14 in 2016 to 11th in 2020, where it has remained in the years since. The report pointed to the state's corporate income tax of 4 percent, the second-lowest in the U.S. after tied South Dakota and Wyoming. Its taxable wage base for unemployment insurance at $11,000 and 0.96 percent property tax rate also worked in the state's favor, according to Missouri Partnership.
Low corporate tax rates and moderate costs for labor and business benefited the state's ranking and economic environment, the report said, alongside incentive programs, sponsored training opportunities, and energy pricing that is "economical and predictable."
The state didn't fair as well in other categories: Its individual tax ranked 21st in the country, while it ranked at the top of the lower half at No. 26 for sales taxes.
The report pointed to recent commitments from prominent businesses that are expected to bring an influx of funds and employees.
Meta, the parent company of Facebook, committed to a new $800 million data center around Kansas City, while American Foods Group is adding an $800 million processing plant in Warren County.
The Lake of the Ozarks region is expected to see its own economic investments during the next few years, with a $60 million planned casino from the Osage Nation announced last year and a $300 million resort and entertainment district expected to open in Osage Beach in 2024.
"The rankings are in -- Missouri is the perfect place for businesses seeking low taxes and ample opportunities," the news release states.
Missouri Partnership is an economic development partnership between the public and private sectors. It works with partners across the state to attract new job opportunities and businesses. It has attracted more than 31,000 new jobs, $1.6 billion in new payroll and $6 billion in capital investments since it began in 2008.
The Tax Foundation is a non-partisan research firm based in the nation's capital. It has operated since 1937.