Which states are "business friendly?"

Q: What kind of states keep businesses growing and going? (What kind of state attracts, encourages and keeps businesses - and jobs?)

A: States that provide market or manufacturing/service bases that aren't burdened by over-regulation, excessive litigation or stifling taxes.

So it should come as no surprise that "blue" states - those typically associated with/controlled by liberal policies and politicians - are the least "business friendly."

The venerable TaxProf Blog cites a report released today that paints an interesting picture of the nation's economy, and where business goes to either thrive or die:

The Tax Foundation today released the 2011 State Business Tax Climate Index (8th ed.) which ranks the fifty states according to five indices: corporate tax, individual income tax, sales tax, unemployment insurance tax, and property tax. Here are the ten states with the best and worst business tax climates:

1	South Dakota	41	North Carolina
2	Alaska	42	Rhode Island
3	Wyoming	43	Minnesota
4	Nevada	44	Maryland
5	Florida	45	Iowa
6	Montana	46	Ohio
7	New Hampshire	47	Connecticut
8	Delaware	48	New Jersey
9	Utah	49	California
10	Indiana	50	New York

Interestingly, all ten of the states with the worst business tax climates voted for Barack Obama in the 2008 presidential election, and five of the ten states with the best business tax climates voted for John McCain (and eight of the ten voted for George Bush in 2004).

When it comes to property taxes, how much you pay is not just linked to where you live...

...but also how you vote.

TaxProf Blog recently linked to a study published by The Tax Foundation, "New Census Data on Property Taxes on Homeowners," as well as a property tax lookup tool. Here are links to specific charts:

• Property taxes paid on owner-occupied housing for each of the 792 high-population counties (65,000 or greater) for 2009 (ranked by taxes as a percentage of home value)
• Property taxes paid on owner-occupied housing for each of the 792 high-population counties (65,000 or greater) for 2009 (ranked by dollar amount of median real estate taxes).
• Three-year average of real estate taxes paid on owner-occupied housing for each of the 2,000+ counties (populations greater than 20,000) for 2006-2008
• Property taxes paid on owner-occupied housing for each of the 50 states for 2009 (ranked by taxes as a percentage of home value)
• Property taxes paid on owner-occupied housing for each of the 50 states for 2009 (ranked by dollar amount of median real estate taxes).

Here are the Top 10 and Bottom 10 States in Median Real Estate Taxes Paid in 2009 -- all 10 states with the highest property taxes voted for Barack Obama in the 2008 election, and 9 of the 10 states with the lowest property taxes voted for John McCain:

Rank	State	Property Tax
1	New Jersey	$6,579
2	Connecticut	$4,738
3	New Hampshire	$4,636
4	New York	$3,755
5	Rhode Island	$3,618
6	Massachusetts	$3,511
7	Illinois	$3,507
8	Vermont	$3,444
9	Wisconsin	$3,007
10	California	$2,893
United States Average		$1,917
41	Tennessee	$933
42	New Mexico	$880
43	Kentucky	$843
44	Oklahoma	$796
45	South Carolina	$689
46	Arkansas	$532
47	Mississippi	$508
48	West Virginia	$464
49	Alabama	$398
50	Louisiana	$243

Again, a big tip o' the cap to TaxProf Blog - a great resource for all sorts of information, particularly when it relates to taxes, law and politics...