Kansas slips in Tax Foundation business tax climate index

Based on five components of taxation important to business, Kansas ranks twenty-second among the states, two positions lower than last year.

The Tax Foundation collects and presents data regarding taxation in the states. From this data, analysts compute the State Business Tax Climate Index. In the Facts & Figures 2015 compilation released today, Kansas ranks 22 among the states. A rank of 1 means the most favorable business tax climate.

In 2014 Kansas ranked at position 20.

The index is composed of five components: Corporate tax rates, individual income tax rates, sales tax rate, unemployment insurance tax rate, and property tax rate.

In many of the areas where data is gathered Kansas ranks near the middle of the states, but there are exceptions.

One area where Kansas ranks low among the states is in “Federal aid as a percentage of general revenue.” For Kansas the value is 24.9 percent, which is 44th among the states. For Missouri the value is 38.2 percent, which ranks fifth.

Another area where Kansas is outside of the middle is in “State general sales tax collections per capita.” The value for Kansas is $1,003, which ranks 12th. This high ranking is probably due to the sales tax on groceries in Kansas. Many states do not tax groceries. In a similar measure “State and local general sales tax collections per capita” Kansas ranks 11th.

In “State and local cell phone tax rates” Kansas ranks 11th highest, with a tax rate of 12.87 percent.

In “State and local excise tax collections per capita” Kansas ranks 42nd at $384.

In “Property taxes paid as a percentage of owner-occupied housing value” Kansas ranks 15th, with a rate of 1.39 percent. In this ranking, first position means the highest tax rate, so only 14 states have a rate higher than Kansas.

In “State debt per capita” Kansas ranks lower than most, at position 37 with debt at $2,362 per person. But in “State and local debt per capita” Kansas is higher than most states, at position 16 with debt of $9,274 per person.

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