Michigan was ranked 12th among the top states for doing business, according to the Tax Foundation’s 2020 State Business Tax Climate Index that was released this week. The new ranking is up five spots from last year, and Michigan is one of only two Midwest states to be in the top half of the rankings.
The Tax Climate Index is designed to show how well states structure their tax systems and is based on five components including individual income tax, sales tax, corporate income tax, property tax, and unemployment insurance tax. Michigan showed the most improvement in the unemployment insurance tax component, moving up 32 spots to No. 17. The state also rose up 10 spots from No. 19 for sales tax.
“The business environment we have created here in Michigan, including a favorable tax climate, provides a recipe for success as companies are looking to expand their operations here in the state,” says Josh Hundt, executive vice president and chief business development officer for the Michigan Economic Development Corp.
“From a competitive cost of doing business – reaffirmed by this most recent Business Tax Climate Index ranking – to a high quality of life that still costs 10 percent less than the national average, Michigan is making a compelling case for growth.”
In related news, Site Selection released its 2019 Business Climate Rankings, in which Michigan rose to No. 16, up from No. 18 last year. For this report, 50 percent of the ranking is based on a survey of corporate site selectors, or the executive survey, and in this area Michigan improved seven spots. Survey participants overall were asked to rank the states based on their recent experience of locating facilities to a given location.
Also, Michigan was ranked No. 4 nationally on the list of top states for manufacturing employment in Business Facilities’ 15th annual Rankings Report. It was recognized for its excellence in economic development by the International Economic Development Council with five IEDC Excellence in Economic Development Awards.