FACTS FIGURES - Tax Foundation

1 2017 HOW DOES YOUR STATE COMPARE?&FAC TS FIGURESIn 1941, we introduced our first edition of FACTS & FIGURES . There is need for concise and accurate data, we wrote. FACTS give a broader perspective; FACTS dissipate predilections and prejudices.. [and] this collection of data is an important step to meet the challenge presented by the broad problems of public finance. FACTS & FIGURES 2017: How Does Your State Compare? builds on these seven decades of tradition. Mailed to every state legislator and governor, this handbook is designed to be a pocket- and purse-sized guide to state rankings on tax rates, collections, burdens, and tables were compiled by Tax Foundation staff and updated by Policy Analyst Morgan Scarboro. We hope these FACTS contribute to a healthy public Foundation1325 G Street NW, Suite 950 Washington, DC 2017 Tax Foundation .

2 All rights in the United States of AmericaISBN: 978-1-942768-16-6 Scott A. Hodge PresidentTax FoundationJoseph D. Henchman Vice President, State Projects Tax FoundationThe Tax Foundation is the nation s leading independent tax policy research organization. Our research and analysis is guided by the principles of sound tax policy:SIMPLICITY: Administrative costs are a loss to society, and complicated taxation undermines voluntary compliance by creating incentives to shelter and disguise income. TRANSPARENCY: Tax legislation should be based on sound legislative procedures and careful analysis. A good tax system requires that taxpayers be informed and understand how tax assessment, collection, and compliance works. There should be open hearings, and revenue estimates should be fully explained and : Taxes should not encourage or discourage certain economic decisions.

3 The purpose of taxes is to raise needed revenue, not to favor or punish specific industries, activities, and products. STABILITY: When tax laws are in constant flux, long-range financial planning is difficult. Lawmakers should avoid enacting temporary tax laws, including tax holidays and for data, research, analysis, and commentary on important tax : @taxfoundation AVAILABLE: The FACTS & FIGURES AppFacts & FIGURES 2017 How Does Your State Compare? Table of ContentsNumberTitleDateTaxes and Tax Measures1 Tax Freedom Day by State20162 State-Local Tax Burdens20123 State Business Tax Climate Index20174 State Tax Collections per Capita20155 State Revenue per Capita20146 State & Local Tax Collections per Capita20147 State & Local Revenue per Capita20148 Sources of State & Local Tax Collections20149 Federal Aid as a Percentage of State General Revenue201410 Federal Income Tax Payments by Income Percentile201411 Selected Federal Tax Rates2017 Individual Income Taxes12 State Individual Income Tax Rates201713 State Individual Income Tax Collections per Capita201514 State & Local Individual Income Tax Collections per Capita2014 Corporate Income Taxes 15 State Corporate Income Tax Rates201716 State Corporate Income Tax Collections per

4 Capita201517 State & Local Corporate Income Tax Collections per Capita201418 State Gross Receipts Taxes2017 Sales Taxes19 State & Local Sales Tax Rates201720 State General Sales Tax Collections per Capita201521 State & Local General Sales Tax Collections per Capita201422 State Sales Tax Breadth2015 Table of Contents, ContinuedExcise Taxes23 State Gasoline Tax Rates201724 Share of State & Local Road Spending Covered by State & Local Tolls, User Fees, & User Taxes201425 State Cigarette Excise Tax Rates201726 State & Local Vapor Excise Tax Rates201727 State Recreational Marijuana Excise Tax Rates201728 State Spirits Excise Tax Rates201729 State Wine Excise Tax Rates201730 State Beer Excise Tax Rates201731 State & Local Cell Phone Tax Rates201632 Sales Tax Treatment of Groceries, Candy, & Soda201733 State & Local Excise Tax Collections per Capita2014 Property Taxes34 Property Taxes Paid as a Percentage of Owner-Occupied Housing Value201535 State & Local Property Tax Collections per Capita201436 State Capital Stock Tax Rates2017 Estate and Inheritance Taxes37 State Estate Tax Rates & Exemptions201738 State Inheritance Tax Rates & Exemptions2017 State Debt39 State Debt per Capita201440 State & Local Debt per Capita201441 Funded Ratio of Public Pension Plans2014 Data42 Income per Capita by State201543 People per Household by State 2014-2015 TAXES & TAX MEASUREST able 1.

5 Tax Freedom Day by State Calendar Year 2016 Note: Tax Freedom Day represents how long into the year Americans work before they have earned enough money to pay all federal, state, and local taxes for the year. New Tax Freedom Day data is released every spring at s rank does not affect states ranks, but the figure in parentheses indicates where it would rank if included. Source: Tax Freedom Day 2016, which is based on data from the Bureau of Economic Freedom 84 AlaskaApril 1720 HawaiiApril 1926 IdahoApril 1824 IowaApril 73 MaineApril 2639 OhioApril 1720 UtahApril 26(39)StateTax Freedom DayRankTAXES & TAX MEASUREST able 2. State-Local Tax Burdens per Capita & as a Percentage of Income Fiscal Year 2012 StateState-Local Tax Burden as a Share of State IncomeRankTotal Tax Burden (per Capita) $4, $3, $3, $3, $3, $5, $4, $7, $4, $3, $3, $4, $3, $5, $3, $4, $4, $3, $2, $3, $5, $5, $3, $5, $2, $3, $3, $4, $3, $3, $6,926 TAXES & TAX MEASUREST able 2, Continued.

6 State-Local Tax Burdens per Capita & as a Percentage of Income Fiscal Year 2012 Note: Data for years 1977 to present are available at Payments made to out-of-state governments are tallied in taxpayer s state of residence where possible. s rank does not affect states ranks, but the figure in parentheses indicates where it would rank if included. See Table 43 for people per household by : Tax Foundation , State-Local Tax Burden Rankings FY $3, $6, $3, $4, $3, $3, $4, $4, $4, $2, $3, $2, $3, $3, $4, $4, $4, $3, $4, $4, (10)$7,541 StateState-Local Tax Burden as a Share of State IncomeRankTotal Tax Burden (per Capita)TAXES & TAX MEASUREST able 3. 2017 State Business Tax Climate Index As of July 1, 2016 StateOverall Index RankRanking on Five Component TaxesCorp. Ta x Ind. Income Ta x Sales Ta xUnemp.

7 Ins. TaxProp. Ta x & TAX MEASUREST able 3, Continued. 2017 State Business Tax Climate Index As of July 1, (47)(31)(43)(33)(27)(47)StateOverall Index RankRanking on Five Component TaxesCorp. Ta x Ind. Income Ta x Sales Ta xUnemp. Ins. TaxProp. Ta x Note: The State Business Tax Climate Index measures how each state s tax laws affect economic performance. A rank of 1 means the state s tax system is more favorable for business; a rank of 50 means the state s tax system is less favorable for business. Component rankings do not average to the total. States without a given tax rank equally as number 1. s rank does not affect states ranks, but the figure in parentheses indicates where it would rank if included. The report shows tax systems as of July 1, 2016 (the beginning of Fiscal Year 2017).

8 Source: Tax Foundation , 2017 State Business Tax Climate & TAX MEASUREST able 4. State Tax Collections per Capita Fiscal Year 2015 Note: , not listed, is included only in combined state and local data. See Table 43 for people per household by : Census Bureau; Tax Foundation per $2,694 Ala.$2,00841 Alaska$1,17050 Ariz.$2,06240 Ark.$3,08613 Calif.$3,8629 Colo.$2,34837 Conn.$4,4385 Del.$3,71510 Fla.$1,83649Ga.$1,93146 Hawaii$4,5303 Idaho$2,40236 Ill.$3,05515 Ind.$2,62828 Iowa$2,94219 Kans.$2,70825Ky.$2,62130La.$2,08139 Maine$3,05714Md.$3,30512 Mass.$3,9767 Mich.$2,71724 Minn.$4,4524 Miss.$2,64227Mo.$1,96544 Mont.$2,75323 Nebr.$2,68326 Nev.$2, $1, $3, $2, $3, $2, $7,5831 Ohio$2,43734 Okla.$2,40535 Ore.$2,62529Pa.$2, $3, $1, $1,95045 Tenn.$1,92447 Tex.$2,00542 Utah$2,23738Vt.$4,8612Va.$2,45033 Wash.

9 $2, $3,01817 Wis.$2,94918 Wyo.$4,0206 StateCollections per CapitaRankTAXES & TAX MEASUREST able 5. State Revenue per Capita Fiscal Year 2014 Note: Revenue refers to the Census Bureau s General Revenue classification. This measure includes taxes, fees, licenses, and intergovernmental revenue but excludes revenue from government enterprises such as utilities and liquor stores, as well as insurance trust revenue. is included only in combined state and local data. See Table 43 for people per household by state. Source: Census Bureau; Tax Foundation per $5,361 Ala.$4,73539 Alaska$14,1601 Ariz.$4,36246 Ark.$6,08717 Calif.$5,94820 Colo.$4,61941 Conn.$7,19010 Del.$8,1265 Fla.$3,86050Ga.$3,86349 Hawaii$7,9596 Idaho$4,54842 Ill.$5,17333 Ind.$5,04135 Iowa$6,07518 Kans.$5,30331Ky.$5,72623La.$5,45328 Maine$6,15915Md.

10 $6,07219 Mass.$7,2619 Mich.$5,53025 Minn.$6,89811 Miss.$5,87221Mo.$4,39945 Mont.$5,84122 Nebr.$5,19332 Nev.$4, $4, $6, $7, $7, $4, $11,9592 Ohio$5,35530 Okla.$5,52726 Ore.$6,13316Pa.$5, $6, $4, $4,87737 Tenn.$4,04647 Tex.$4,51043 Utah$5,08634Vt.$9,2094Va.$4,97936 Wash.$5, $6,62413 Wis.$5,63324 Wyo.$9,8923 StateRevenue per CapitaRankTAXES & TAX MEASUREST able 6. State & Local Tax Collections per Capita Fiscal Year 2014 Note: Revenue refers to the Census Bureau s General Revenue classification. This measure includes revenue such as taxes, fees, licenses, and intergovernmental revenue but excludes revenue from government enterprises such as utilities and liquor stores, as well as insurance trust revenue. s rank does not affect states ranks, but the figure in parentheses indicates where it would rank if included.