The Sunshine State means business.
Florida’s business climate ranked first among the nation’s most populous states and fifth overall in a recent study by the Tax Foundation, the State Business Tax Climate Index.
The nonpartisan tax research group evaluated the states’ tax climates based on their taxes, including corporate, individual income, sales, unemployment insurance and property.
“I’m not surprised that they would say that,” said Bill Rossi, a UF entrepreneurship professor. “Florida does not have a personal income tax, and therefore, it is a more economical climate for employees of firms to live and work.”
Florida’s individual income tax rates ranked first in the nation, and its unemployment insurance ranked third. Rossi said Florida also ranked high because the tax raise that state businesses are subject to is more favorable than those in other areas of the country.
“A lot of things that comprise one’s budget tend to be a little lower priced in Florida,” he said, “and when you couple that with the fact that we don’t have an income tax, it’s a pretty good place to live and work.”
Gainesville has exemplified Florida’s thriving business climate, Rossi said. Entrepreneurship is alive and well in the city, thanks to recent UF graduates founding local companies like Grooveshark and Fracture.
Fracture, a local glass-printing image company, has seen a 70-percent increase in state sales over the last year, according to chief marketing officer Herb Jones. The business was founded by two UF alumni in 2009.
“Florida definitely has excelled in creating a very business-friendly environment, and the overall economic conditions of the country have benefitted Fracture,” Jones said. “We’re a company that’s highly dependent on disposable income.”
[A version of this story ran on page 8 on 11/24/2014]
