Wyoming has again been identified as the state with the country’s best tax climate for businesses by a tax policy group.
The Tax Foundation identified the state’s lack of personal and corporate income taxes and its relatively low sales taxes as a reason why the state stayed in the No. 1 ranking it has held for the past nine years.
And while the ranking is good news for the state’s businesses, other factors also figure into the success of those businesses, according to the president of the Wyoming Business Alliance.
“The business community is very resilient and to have a favorable tax climate definitely helps,” Cindy DeLancey told Cowboy State Daily. “But it’s not the only answer. There are many key ingredients that have to come together for businesses to be successful in Wyoming.
The Tax Foundation, in its annual report, gave Wyoming its highest ranking for a tenth consecutive year because of its lack of corporate and personal income taxes.
“The absence of a major tax is a common factor among many of the top 10 states,” the report said. “Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes…”
South Dakota placed second for the best tax climate.
DeLancey welcomed the ranking for Wyoming and credited state leaders for the policies that led to the rating.
“We’re incredibly blessed to have such thoughtful and considerate policy makers who really work to try to keep Wyoming competitive and our economy strong,” she said. “To see that ranking again is incredibly valuable in light of our state coming off of two years of the pandemic.”
However, state leaders must continue to pay attention to other factors that give the state a good climate for business, she said.
“It’s important that we keep our eye on the ball as far as regulatory developments and our workforce development,” she said.
Wyoming must also continue its work to diversify the economy and reduce the strain on the state’s energy industry, she said.
“We’re lucky the energy industry has paid our taxes for generations,” she said. “But with our global economy, we need to look at other industries to take the pressure off of an industry that is stressed to the max.”