New Studies Evaluate Utah Taxes, Business Climate

The Utah Taxpayer

The Tax Foundation’s latest report shows a decrease in property tax burdens on homeowners in Utah. According to data compiled from 2004-2008, Utah has reduced its taxes as a percentage of home value from 0.68% in 2005 to 0.56% in 2008. These statistical changes resulted in a drop in rankings from 2005 when Utah had the 34th highest taxes as a percentage of home value, to 2008 where Utah ranked 40th.

In addition, Forbes Magazine ranked Utah as the third best state for business in 2009. While all states are experiencing bankruptcies, foreclosures and high unemployment, Utah has maintained its place as a top state for business. The Forbes study considered thirty-three points of data condensed into six categories. Considering these six categories, labor supply, regulatory environment, current economic climate, growth prospects and quality of life, Utah ranked third behind Virginia and Georgia.

The Business Costs category included labor, energy and tax costs and was weighted most heavily in determining the state’s overall rank. Educational attainment, net migration and projected population growth were grouped under Labor. The Regulatory Environment rnking included regulatory and tort climate incentives, transportation and bond ratings. Economic Climate included job, income, and current gross state product growth, unemployment and presence of big companies. The Growth Prospects category evaluated projected gross state product growth, projected job and income growth, business openings and closings and venture capital investments. The Quality of Life category evaluated schools, health, crime, cost of living and poverty rates.

Despite having fallen from it’s number two position in 2006, Governor Gary Herbert remains confident in the strength and ingenuity of Utahns. "As a state, we continue to recognize the
innovation and entrepreneurship that exists in our business community," said Gov. Gary Herbert. "State government will continue to work closely with all parts of our economy to maintain Utah's unmatched quality of life, competitive economy and job growth opportunities so that Utah remains a state of opportunity."