The Utah economy is moving in the right direction.
While there are a lot of reasons for this growth, one advantage is the state’s tax structure.
We recently placed the Utah tax climate at #8 in our state-by-state rankings of the best places to start a business.
Here’s how Utah stands out from the crowd:
Many states ranked highly on the tax climate index do it by forgoing taxes entirely in certain areas (e.g., no state income tax, sales tax, property tax, etc.)
Utah chooses a different route.
They have levies in all of the major categories (corporate taxes and unemployment insurance taxes), in addition to the three previously listed.
But none of the rates are particularly high.
Utah is in the top 16 in every single category and has supported that with a concerted effort to simplify the regulatory process.
Furthermore, Utah’s top-5 ranking for corporate taxes and property taxes demonstrate an ability to leverage one of the state’s best assets: large tracts of available land for attracting larger businesses.
The result is that Utah has started to boom in the high-tech sector, along with the defense industry and outdoor/recreation businesses.
Utah’s geographic attractiveness isn’t limited to simply available land.
The state’s position in the interior west make it a perfect hub between California and the Midwest, and from Canada to Mexico.
It’s all added up to making Utah a high-tech center and investors have recognized the opportunity, with access to capital now being easier in this state than in California or Arizona.
The northern part of Utah, with it’s Point of the Mountain, is even being called “The Silicon Slopes” in appreciation of the high-tech growth.
Economic success has a lot of different components and for business owners they usually start with taxes.
The Utah tax climate is strong and many analysts think it will only get better.
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