Tennessee's tax climate ranks better than most states at No. 15, according to a new report from the Tax Foundation.
"The evidence shows that states with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth," according to the report from the nonpartisan research organization.
The report looks at tax burdens in each state, and Tennessee ranks the same as it did last year in the overall ranking.
But taking into account only sales tax, Tennessee ranks at No. 43, according to the report.
Consumers pay sales tax on retail sales, leases and rentals of most goods as well as taxable services, according to the Tennessee Department of Revenue.
Tennessee cities and counties have the option of imposing an additional local option sales tax.
The sales tax rate on food is 5 percent. All other tangible personal property, unless specifically exempted, is 7 percent.
Click here to read the entire report.
Several states have moved in the rankings since last year, with Texas dropping out of the top ten for the first time to No. 11.
Virginia and Kentucky both falling three places to No. 26 and No. 27, respectively.
“The states that lost ground this year usually did so because they changed policy in a way that makes the tax code more complex, burdensome, or economically harmful,” Tax Foundation economist Scott Drenkard said in a prepared statement. “By contrast, the states that improved did so because they are moving closer to a tax code that collects revenue without unnecessarily distorting business decisions. Their tax codes became more neutral.”
Sign up for our email list to get your morning news delivered directly to your inbox. All we need is your email address.