A report issued Wednesday says Connecticut is the 10th worst state in the nation when it comes to taxes on small businesses.
The Small Business and Entrepreneurship Council (SBEC) said in its 2016 Small Business Tax Index report Connecticut has a business tax index score of 65.467, ranking it 41st out of 50 states. South Dakota is ranked number one at 12.114.
SBEC said the index ranks the states from best to worst in terms of the costs of their tax systems on entrepreneurship and small business. This year’s edition of the Index pulls together 25 different tax measures, and combines those into one tax score that allows the 50 states to be compared and ranked.
One area where the state does well is sales, gross receipts and excise taxes as a share of personal income. Connecticut is ranked 17th at 2.81 percent of personal income. Oregon is first at 0.817 percent. The state is also ranked 15th for its unemployment tax level of 1.85 percent. California is first at 0.81 percent.
Other indicators hurting the state’s overall score include the nation’s second-highest diesel tax and sixth-highest fuel tax.
