Baltimore’s business-tax climate balmy

Charm City’s companies enjoy relatively low burden, says competitiveness report

KPMG’s ‘‘2008 Competitive Alternatives: Focus on Tax” compared the total tax burden on companies in 102 cities in 10 nations. Nationally, the United States ranked fifth.

The study, intended as a tool for companies to compare various locations’ tax burdens, examined corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous business taxes and statutory labor costs.

‘‘Cities across the United States recognize that attracting and retaining businesses of all sizes is important for a vibrant local economy,” Hartley Powell of KPMG’s Strategic Relocation and Expansion Services practice, said in a statement.

‘‘As the survey results indicate, certain cities are leaders in developing a tax environment that encourages business development, and tax costs are a key consideration in the site selection process,” Powell said.

The study pegged the average U.S. tax burden at 100. San Juan had, by far, the lowest total tax index, 46.6. Baltimore was next, at 92.1. Atlanta was third at 95.1. The study looked at Greater Baltimore, with a population of 2.7 million as of 2006.

Baltimore also ranked among the most business-friendly tax climates in several categories. For example, it was second – at 88.4 percent – as a location for research and development operations. It also ranked second for manufacturing operations, as taxes on property, equipment and capital are relatively low. It ranked third for service industry companies, with relatively low statutory labor costs.

The entire report - which examines a broad range of business costs such as utilities, transportation and labor - is available at: www.competitivealternatives.com.