EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
How EY can help
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State and local taxes can significantly impact a company’s cash flow, effective tax rate and risk profile. Our network of dedicated state and local tax professionals combines technical knowledge with industry understanding and access to technologically advanced tools and methodologies.
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Key findings
- Business property tax collections grew by 7.7% in FY22 to $373.1 billion. Property taxes account for 34.7% of all state and local taxes paid by businesses, the most of any tax category.
- Sales tax collections from business purchases of intermediate inputs and capital expenditures are the second largest source of business tax revenue for state and local governments, accounting for 20.9% of all taxes paid by businesses in FY22.
- Corporate income tax collections, the third largest source of business tax revenue for state and local governments, grew 26.7% in FY22 to $141.4 billion.
- Individual income taxes paid on pass-through income, including pass-through entity taxes, were the fourth-largest business tax at 7.6% of total state and local business tax collections.
- Total state and local taxes paid by businesses in FY22 equaled 5.0% of US private-sector gross state product (GSP), which measures the value of private-sector production of goods and services in a state.