3 minute read 18 Nov 2021
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Total State and Local Business Taxes for FY20

By Andrew Phillips

EY Global Government & Infrastructure Economics, Finance, and Tax Leader; EY Americas Quantitative Economics & Statistics (QUEST) Leader

Economist. Seasoned traveler. Novice CrossFitter.

3 minute read 18 Nov 2021
Related topics Tax

State-by-state examination of the total amount of state and local taxes paid in FY20 by businesses as outlined in the 19th annual report.

Businesses paid more than $839 billion in state and local taxes in FY20, an increase of 0.5% from FY19. State business taxes decreased by 1.9%, and local business taxes grew by 3.1%. In FY20, business tax revenue accounted for approximately 44.3% of all state and local tax revenue.

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.

Key findings

  • Business property tax revenue increased by 3.8% in FY20, a gain of $12.2 billion, and accounted for 39.2% of the total state and local taxes paid by businesses and 76.5% of all local taxes paid by businesses.
  • General sales taxes on business inputs and capital investment totaled $180.1 billion, or 21.5% of state and local business taxes, accounting for 32.5% of all state taxes paid by businesses.
  • Corporate income taxes decreased by 6.3% from FY19 to FY20, with state and local corporate income taxes totaling $71.7 billion, accounting for 8.5% of all state and local businesses taxes paid.
  • Individual income taxes on pass-through business income accounted for 6% of total state and local business taxes.
  • Severance taxes decreased from $15 billion in FY19 to $11.6 billion in FY20.
  • FY20 state and local business taxes equaled 4.5% of the total US private-sector gross state product, which measures the total value of a state's annual private-sector production of goods and services.

Summary

This annual report examines the total amount of state and local taxes, state-by-state, paid in FY20 by businesses.

About this article

By Andrew Phillips

EY Global Government & Infrastructure Economics, Finance, and Tax Leader; EY Americas Quantitative Economics & Statistics (QUEST) Leader

Economist. Seasoned traveler. Novice CrossFitter.

Related topics Tax