“NEW YORK, June 24, 2014 /PRNewswire/ — Cincinnati, Cleveland, Atlanta, Baltimore and Pittsburgh offer the most favorable tax structures for businesses among U.S. cities/locations with populations exceeding 2 million, according to a study released today by KPMG International (KPMG).
Of the 51 large international cities highlighted in the study, Cincinnati, Cleveland, Atlanta, Baltimore and Pittsburgh all placed in the top 20 – ranking seventh, 11th, 12th, 13th and 14th, respectively. Among the 10 countries in the study, the U.S. ranked fifth in terms of favorability of its overall tax structure for business.
KPMG’s 2014 Competitive Alternatives: Focus on Tax study is a global comparison of the total tax burden that companies in 107 cities throughout 10 countries may face, including corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous local business taxes and statutory labor costs.
‘While a number of large U.S. cities rank favorably internationally, Cincinnati and Cleveland, in particular, fared well because of Ohio’s business tax structure,’ said Hartley Powell, principal in the Global Location and Expansion Services practice of KPMG LLP, the U.S. member firm of KPMG International. ‘The Buckeye State has no state corporate income tax, low statutory labor costs, and exemptions of personal property and inventory from property tax, providing both of these Ohio cities with relatively low corporate tax burdens.’
According to the study, Cincinnati had a total tax index of 73.5, representing tax costs 26.5 percent below the U.S. baseline of 100.0, followed by Cleveland (80.2), Atlanta (81.1), Baltimore (81.2) and Pittsburgh (81.9), rounding out the top-five favorable large U.S. cities.
Other U.S. cities that ranked in the top 20 among international cities for most cost-competitive tax structure included:
- Philadelphia (15th/ 84.1)
- Charlotte, N.C. (16th/ 84.5)
- Minneapolis (17th/ 88.1)
- Orlando, Fla. (18th / 88.2)
- Tampa, Fla. (19th/ 89.1)
- North Virginia/Metro D.C. (20th/ 89.9)
Of particular interest, the study also showed that Louisiana continues to be the leading state with the most cost-competitive tax structure among locations in the study’s mid- and small-sized city categories, as Baton Rouge, New Orleans and Shreveport ranked first, second and third, respectively, in the overall results of U.S. cities.”
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