Cincinnati's among the most tax-friendly cities in the world
Erin Caproni - Cincinnati Business Courier
Cincinnati, with tax costs 26.5 percent below the U.S. baseline, ranked No. 7 of all international cities and No. 1 of all U.S. cities with populations of more than 2 million.
The “2014 Competitive Alternatives Focus on Tax” analyzed corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous local business taxes and statutory labor costs for 107 cities in 10 countries.
“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 at KPMG LLP. “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.”
Cincinnati has the most cost-effective tax structures of all U.S. cities for digital services and ranks third in the nation for the research and development sector. It was also ranked second for the corporate services and manufacturing sectors.
“This latest ranking is another example of how Greater Cincinnati can compete and win, not just in the U.S., but across the world, which is essential given today’s global marketplace,” REDI Cincinnati president and CEO Johnna Reeder said.
Other U.S. cities that ranked among the top 20 international cities with the most competitive tax structures include Philadelphia (No. 15); Charlotte, N.C. (No. 16); Minneapolis (No. 17); Orlando (No. 18); Tampa (No. 19), and the North Virginia/Washington, D.C. metro (No. 20). The U.S. as a whole ranked fifth against other countries across the globe.