A report from Anderson Economic Group ranks Delaware lowest in the nation, when it comes to business taxes.
The lack of a sales tax and low property taxes figured into the calculations. However, Anderson also said the much criticized gross receipts tax levied in Delaware was also included. The gross receipts tax amounts to a sales tax paid by a business.
In an environment filled with chain retailers with standardized prices, it is often difficult for smaller merchants to pass that tax along to the consumer.
The report put the state’s business tax rate at about 5 percent. Alaska had the highest tax rate, due to its levies on natural resources, including oil .
The study is likely to become a key marketing tool for the state. Other recent reports have put the state further down in the rankings when it comes to business climate and economy.
In one report from Chief Executive magazine, Delaware slipped to 27 from 14 in its business ranking. According to the report, taxes and the regulatory environment were factors in the the ranking.
Click here for a copy of the report.
