Tennessee is one of the country's top business-friendly states for taxes, according to a new report.
The 2013 State Business Tax Climate Index ranked the Volunteer State 15th this year.
"The lesson is simple: A state that raises sufficient revenue without one of the major taxes will, all things being equal, have an advantage over those states that levy every tax in the state tax collector’s arsenal," according to the report.
Absence of a major tax, such as corporate tax, individual income tax or sales tax, is a major factor that affected rankings.
Tennessee only has an individual income tax on dividend and interest income. Click here for more information.
"Tennessee's 2010 state-level individual income tax collections were $27 per person, which ranked 43rd-highest nationally," according to the report.
Tennessee beats out its border states in tax-friendliness, which could mean an edge on competition for business.
Companies such as Volkswagen got tax incentives to bring business to the state.
