November 4, 2021
Council on State Taxation (COST) releases EY report on state and local taxes paid by businesses in fiscal year 2020
In a newly released report, "Total state and local business taxes, State-by-state estimates for FY 2020," prepared in conjunction with the Council on State Taxation (COST) and State Tax Research Institute (STRI), EY's Quantitative Economics and Statistics Group estimates the state and local taxes paid by businesses in fiscal year 2020 (FY20).
The state and local business tax estimates reflect tax collections from July 2019 through June 2020. The report includes business taxes in its analysis, such as business property taxes, sales and excise taxes businesses paid on input purchases and capital expenditures, gross receipts taxes, corporate income and franchise taxes, business and corporate license taxes, and unemployment insurance taxes.
Assuming in-state education spending does not benefit in-state businesses, businesses paid on average $3.29 in taxes per dollar of government spending benefiting businesses, meaning businesses paid, on average, more in state and local taxes than they received in benefits.