An annual ranking of state tax burdens on businesses released by the conservative-leaning Tax Foundation knocked Connecticut down one notch, to No. 42 out of 50 states.
The State Business Tax Climate Index gave Wyoming the top spot for the fifth year in a row, meaning it has the lowest business tax burden. The index rewards states that do not levy one or more of the following taxes — sales, corporate, and individual income. Wyoming does not have the latter two taxes, the report said.
The foundation ranked Connecticut 42nd two years ago, and 40th in calendar year 2011.
Connecticut’s worst sub-category score was for property taxes, which the foundation said are the second highest in the country.
DRS Commissioner Kevin Sullivan has criticized the foundation’s methodology in the past, calling it erroneous.
Sullivan defended Connecticut on Tuesday, saying that the foundation does not account for the high relative income level of the state, nor what services taxpayers receive for their dollars.
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