When choosing a distribution company it is important to consider the tax climate of the state where your distribution company is located. The Tax Foundation’s 2013 edition of the State Business Tax Climate Index may help you with the decision making process. This index gauges how each states’ tax systems compare. Nevada is one of the highest ranking of the 50 states. Read on to see how your state tax climate compares.
The Index keeps in mind several factors when ranking taxes. The absence of a major tax is a dominant factor as are property taxes and unemployment insurance taxes. The states in the bottom 10 have complex, non-neutral taxes with comparatively high rates. A state like Nevada that raises sufficient revenue without major taxes has an advantage over those states that levy many taxes.
According to this year’s Index the best ranked states are:
- South Dakota
- New Hampshire
The 10 lowest ranked, or worst, states in this year’s Index are:
- North Carolina
- Rhode Island
- New Jersey
- New York
Nevada has no corporate or individual income tax, putting it in 3rd place. This ranking also makes Nevada one of the best choice for a West Coast distribution company. If you are looking for a West Coast 3PL company you should consider the tax benefits Nevada and Hopkins Distribution have to offer.
Contact Hopkins Distribution to discuss your specific West Coast distribution needs today!