Florida ranks 22nd best on sales tax study

Florida finished 22nd in a study by the Tax Foundation examining which states have the most business-friendly sales tax structures.

The state’s ranking remained unchanged from its 2018 score, according to the foundation’s analysis, which is part of a wider study titled “2019 State Business Tax Climate Index.”

A state’s tax on goods and services can hurt the business climate if the levy applies to business inputs such as machinery and raw materials and if the rate causes consumers to alter their shopping patterns, according to the foundation.

The best sales tax structure occurs when it applies broadly to end products and services that are purchased by consumers and when rates are low and minimize market distortions, the study says.

The highest-scoring states in the analysis were New Hampshire, Delaware, Montana, Oregon, and Alaska – all of which do not tax sales.

How Do States Measure Up on Sales Taxes?

State 2018 Rank 2019 Rank Rank Change from 2018 to 2019
New Hampshire 2 1 1
Delaware 1 2 -1
Montana 3 3 0
Oregon 4 4 0
Alaska 5 5 0
Wyoming 6 6 0
Maine 8 7 1
Wisconsin 7 8 -1
Nebraska 9 9 0
Virginia 11 10 1
Michigan 12 11 1
Indiana 10 12 -2
Massachusetts 13 13 0
Kentucky 14 14 0
Vermont 16 15 1
Utah 17 16 1
West Virginia 15 17 -2
Maryland 18 18 0
Iowa 19 19 0
North Carolina 20 20 0
Pennsylvania 21 21 0
Florida 22 22 0
Rhode Island 23 23 0
Hawaii 26 24 2
Missouri 24 25 -1
Idaho 27 26 1
Minnesota 25 27 -2
Ohio 30 28 2
Georgia 29 29 0
Connecticut 28 30 -2
Kansas 31 31 0
North Dakota 32 32 0
South Dakota 34 33 1
South Carolina 33 34 -1
Mississippi 38 35 3
Illinois 35 36 -1
Texas 37 37 0
Colorado 39 38 1
Oklahoma 36 39 -3
Nevada 42 40 2
New Mexico 40 41 -1
New York 43 42 1
California 41 43 -2
Arkansas 44 44 0
New Jersey 46 45 1
Tennessee 45 46 -1
Arizona 47 47 0
Alabama 48 48 0
Washington 49 49 0
Louisiana 50 50 0

Source: Tax Foundation

This article was first published on Watchdog.org.

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