Governor Kaine Touts Independent Studies That Show
Virginia Is Low Tax, Business-Friendly State
~ Tax Foundation places Virginia 41st among 50 states ~

April 20, 2006

On the day after the federal income tax filing deadline, Governor Timothy M. Kaine highlighted a new report from the non-partisan, non-profit Tax Foundation that ranks Virginia as the 41st lowest among the 50 states in state and local tax burden. The Tax Foundation analyzed state and local business licensing and sales taxes, real property and tangible personal property rates, Census data, and other factors to determine its annual ratings. It is the third independent, non-partisan study in recent weeks to designate Virginia as a low tax state with business-friendly policies.

"This report from the Tax Foundation reinforces the fact that Virginia is one of the nation's best-managed states, with a diverse and growing economy and a low tax burden," said Governor Kaine. "We are in this favorable position because we have followed conservative fiscal policies, we plan responsibly, and we keep our commitments. We will maintain this successful approach as we work to continue moving Virginia forward."

Among neighboring states, only Tennessee was ranked lower in the Tax Foundation report, at 47th. In contrast, Maryland ranked 19th, Kentucky was 20th, West Virginia ranked 21st, and North Carolina was 23rd among the 50 states in state and local tax burden.

The Tax Foundation is a non-partisan organization whose mission is "to educate taxpayers about sound tax policy and the size of the tax burden borne by Americans at all levels of government."

The Tax Foundation study follows the recent release of two other studies that cited Virginia's business-friendly policies and low taxes.

• The Council on State Taxation (COST), a nonprofit trade association, released an Ernst & Young study of total business tax collections in relation to their percentage of the gross state product. The study ranked Virginia's percentage, along with both North Carolina and Delaware, as the lowest in the nation, at 3.7 percent.

• Pollina Real Estate, Inc., a top U.S. corporate site relocation expert, released an independent study in late March ranking Virginia as the second most business-friendly state in the nation. The Pollina study took a comprehensive approach to evaluating and ranking states based on a total of 29 factors, including taxes.