Report ranks Alabama poorly for its business climate

(The Center Square) — Despite moving up two spots from last year, an annual report continues to give Alabama poor marks for its business climate.

The report by the nonpartisan policy group the Tax Foundation ranked the Yellowhammer State 39th after ranking the state 41st in the previous edition.

Alabama was ranked 19th best for its corporate tax rate, 33rd for its individual income tax, 17th for its property tax, 15th for its unemployment insurance and dead last for its sales tax rate.

The state was bested by all of its neighbors, led by Florida (4th best business climate), Tennessee (15th), Mississippi (20th) and Georgia (32nd).

Alabama received low marks for its combined sales tax rate (the state rate is 4%), which averages 9.24% statewide. Some cities, such as Mobile and Birmingham, have rates of 10%.

The report also said Alabama is one of the states that “hamper economic growth by including too many business inputs, excluding too many consumer goods and services, and imposing excessive rates of excise taxation.”

Alabama also has the third-highest per-gallon tax on beer at $1.05, trailing only Tennessee ($1.29) and Alaska ($1.07).

The Yellowhammer State does collect the least amount of property tax per capita at $660, with the nation’s lowest effect rate at 1.38%.

It also has one of the nation’s lowest top marginal income tax rates at 5%, the same as its neighbor Mississippi.

Alabama also received strong marks as one of the states that places a cap on its capital stock tax.

Due to a budget surplus, lawmakers voted to give taxpayers a one-time tax rebate that will add up to $150 for single heads of households and $300 for those married who filed a joint return.

“From the very beginning, it has been my belief that it is the responsibility of government to be good stewards of taxpayer dollars while actively looking for ways to support citizens through tough times,” Alabama Gov. Kay Ivey said in a news release. “Our country is in the midst of tough times, and Alabama families from all walks of life are unfortunately seeing that their paychecks aren’t going as far as they once did. Thanks to our unwavering commitment to fiscal responsibility, one-time tax rebates will be with our hard-working Alabamians in time for the holidays.”

DON’T MISS OUT

Be the first to know about the latest news, giveaways, events, and updates from The Black Chronicle!

We don’t spam! Read our privacy policy for more info.

spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Some call new commission to explore Illinois’ property tax system a waste of time

(The Center Square) – Despite being criticized for being...

Op-Ed: New banking hurdles mean most Americans finish last

In any relay race, when the first leg stumbles...

American Airlines resumes flights after ‘technical issue’ halts flights nationwide

American Airlines briefly grounded all flights across the United...

Op-Ed: Montana Supreme Court oversteps and makes a mess

Typically, courts provide clarity. They do not exist to...

VIDEO: Illinois legislators return Jan. 4 for ‘lame duck’ session

(The Center Square) – After the new year, Illinois...

Which state is the most taxpayer-friendly?

The Cowboy State has once again won the tax...

Georgia adds more than 116,000 residents

(The Center Square) – Georgia added 116,646 residents from...

More like this
Related

Some call new commission to explore Illinois’ property tax system a waste of time

(The Center Square) – Despite being criticized for being...

Op-Ed: New banking hurdles mean most Americans finish last

In any relay race, when the first leg stumbles...

American Airlines resumes flights after ‘technical issue’ halts flights nationwide

American Airlines briefly grounded all flights across the United...

Several paycheck-impacting laws set to go into effect in Washington next year

(The Center Square) – With a new year just...