Analysis: New Mexico ranks best on property tax study


New Mexico finished first in a new study by the Tax Foundation ranking of which states have the most business-friendly property tax structures.

The state’s ranking remained unchanged from its 2018 score, according to the foundation’s analysis, which is part of a wider study titled “2019 State Business Tax Climate Index.”

All states and the District of Columbia have property tax systems. These taxes are a concern for businesses because often tax rates on commercial property exceed that of residential property, according to the Tax Foundation.

In the foundation’s analysis, the best property tax systems maintain competitive rates and avoid placing levies on intangible property, such as trademarks, and asset transfers. Such taxes can make up more than a third of all taxes paid by businesses to state and local agencies, the study says.

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How Do States Measure Up on Property Taxes?

State2018 Rank 2019 Rank Change in Rank from 2018 to 2019
New Mexico1  1 0
Indiana4  2 2
Utah5  3 2
Idaho3  4 -1
Arizona6  5 1
North Dakota2  6 -4
Missouri7  7 0
Nevada8  8 0
Delaware20  9 11
Montana9  10 -1
Florida10  11 -1
Colorado14  12 2
Ohio11  13 -2
California13  14 -1
Alabama12  15 -3
Hawaii16  16 0
Oregon18  17 1
West Virginia17  18 -1
Oklahoma15  19 -4
Kansas19  20 -1
Wisconsin26  21 5
Michigan21  22 -1
Alaska38  23 15
Georgia23  24 -1
Washington27  25 2
Arkansas22  26 -4
South Carolina24  27 -3
South Dakota25  28 -3
Tennessee29  29 0
Virginia31  30 1
Minnesota28  31 -3
Louisiana30  32 -2
North Carolina32  33 -1
Pennsylvania33  34 -1
Kentucky36  35 1
Mississippi35  36 -1
Texas37  37 0
Wyoming34  38 -4
Iowa39  39 0
Nebraska40  40 0
Maine41  41 0
Maryland42  42 0
Rhode Island43  43 0
New Hampshire44  44 0
Illinois45  45 0
Massachusetts46  46 0
New York47  47 0
New Jersey50  48 2
Vermont48  49 -1
Connecticut49  50 -1
Source: Tax Foundation

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