Commonwealth of Virginia
Office of Governor Bob McDonnell
FOR IMMEDIATE RELEASE
April 21, 2011
Contact: Jeff Caldwell
Phone: (804) 225-4260
Virginia Ranked Sixth in the Nation for Lowest Tax Burden on New Investments
– Ernst & Young Study for Council on State Taxation Lauds Virginia’s Low Corporate, Property and Sales Taxes –
RICHMOND – The Council on State Taxation (COST) has rated Virginia sixth in the nation in a new study ranking states by tax burden on new investment. The study, “Competitiveness of State and Local Business Taxes on New Investment,” was compiled by Ernst & Young in conjunction with COST.
“Virginia continues to be recognized for its pro-business environment. The Commonwealth is the best place in the nation for private-sector economic investment,” said Governor Bob McDonnell. “This latest top-ten ranking prepared for COST by Ernst & Young, recognized leaders in business analysis, joins a long list of accolades that Virginia has earned for its low taxes, skilled workforce, limited regulation and favorable quality of life. Virginia is wide open for business and these experts are recognizing what many private businesses and job-creators have known for a long time—that there is no better place to invest than Virginia”
The study compares all 50 states on the competitiveness of current state and state and local statutory tax provisions and the financial characteristics of new investments. The estimated tax burdens on selected investments are combined to provide an overall measure of the business tax competitiveness of each state. The study focuses on five types of capital investments that states compete to attract: headquarters facilities; research and development facilities; office and call center facilities; durable and nondurable manufacturing facilities.
To read the full study, visit http://www.cost.org/WorkArea/DownloadAsset.aspx?id=78442
COST is a nonprofit trade association formed in 1969 representing over 600 multistate corporations engaged in interstate and international business. COST’s objective is to preserve and promote equitable and nondiscriminatory state and local taxation of multijurisdictional business entities.
This study was prepared by the Quantitative Economics and Statistics Practice (QUEST) of Ernst & Young LLP in conjunction with the Council On State Taxation (COST). QUEST is a group of economists, statisticians, and tax policy researchers within Ernst & Young LLP’s National Tax practice, located in Washington, D.C.