The Tax Foundation released their annual look at the best business tax rates by state, and Arizona is ranked near the middle.
The list plants Arizona No. 21 with four tax ranks in the top 20: corporate tax rank, individual income tax rank, unemployment insurance tax rank and property tax rank, with the last being No. 6 overall.
The index’s goal is to determine how well states structure their systems, while also pointing them in the right direction for growth.
The report noted the improvements for Arizona to jump from No. 22 to No. 21.
Arizona is in the process of lowering its corporate income tax rate. Scheduled annual rate reductions began in 2015 and will continue through 2018, with the rate declining from 6.0 to 5.5 percent in 2016.
The first reduction helped the state improve three places on the corporate income tax component, and this year’s reduction moved the state a further three places on the corporate component, from 22nd to 19th, with the state’s overall rank improving from 22nd to 21st.
The cuts have been aided by limitations on credits and other tax preferences, which have helped pay down rate reductions.