Montana Ranks 7th For Business Tax Climate - ABC FOX Montana Local News, Weather, Sports KTMF | KWYB

Montana Ranks 7th For Business Tax Climate

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BOZEMAN -

With a tax burden of only 8.6 percent in 2010, Montana ranks in the top ten when it comes to our business climate.

This is a high ranking that helps draw people and businesses to the treasure state.

The Tax Foundation ranks Montana as the 7th best state in the country to do business.  Business owners in Bozeman say it's because of no sales tax for shirts and other items.

"When you live in a community outside of our state that has a 10 percent sales tax, on a $600 item that adds up" said Jennifer Merkel, Chalet Sports owner.

The tax foundation is an independent tax research group.

They publish the State Business Tax Climate Index every year.

According to the index, eight of the top ten states either don't have a corporate tax, an individual income tax or a sales tax.

The foundation uses five different areas to rank each state's business tax climate, each weighing differently.

Individual income and sales tax were weighed the most.

Montanan's pay 6.9 percent in income taxes.

Chalet Sports manager Tom Czech said he also thinks Montana ranked so high because the state's natural beauty helps bring in different types of businesses.

"We're able to take advantage of a lot of tourism we have and invite more businesses into our community that normally wouldn't be here," said Czech.

This year, Montana legislators reduced taxes on every Montana business and eliminated the business equipment tax for two-thirds of existing companies. 

"I think Montana is a captured environment that these tourists know they can come and get good equipment, enjoy it in our state and we ship it back home," said Merkel.

Last year Montana ranked 8th in the same survey.

The Tax Foundation ranks Wyoming first, while New York ranks 50th.

To see a map on how the rest of the country ranked, click here.

 

 

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