202020202020 - kansaspolicy.org2020 kansas green book exploring the relationship between the size of...

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KPI Fact Bookexploring the relationship

between the size of government and economic growth

www.KansasPolicy.orgwww.KansasOpenGov.org

U.S. Supreme Court Justice Louis Brandeis saw states as “laboratories of democracy” conducting “experiments” in public policy. Today, more than eight decades after Brandeis coined the phrase, state experimentation with tax policy makes it abundantly clear that tax policy has a direct impact on economic growth. As shown on page 27, each of the eleven states that enacted an income tax since 1960 now has a smaller share of state GDP relative to the other 39 states and each one also has a smaller share of state and local tax revenue. That is a remarkable statistic; those eleven states enacted a new source of tax revenue and lost revenue share to other states! To the contrary, states with low tax burdens and states without an income tax consistently outshine their higher-burden peers on the key, tangible economic measures like private sector job, GDP, and wage growth. What’s more, citizens are taking notice and “voting with their feet” by flocking to low-burden states from higher-burden counterparts. Skeptics try to dismiss this definitive migratory trend by cherry-picking success stories like Texas and Florida and characterizing them as ‘’happy accidents” of favorable geography, climate, and/or resource abundance.

The true secret to having a low tax burden is not geography, climate, or availability of natural resources but a simple matter of mathematics: states that spend less are able to tax less. A state could, for example, have all of the oil in the nation but still have a high tax burden if it spent more. Every state offers the same basket of services (e.g., education, social services, and highways), but some states provide those services at a better price and pass the savings on to citizens in the form of lower taxes. As shown on page 19, states that tax income spent 55% more per-resident in 2018 than those without an income tax. Moreover, having low state taxes doesn’t prompt high local taxes. The table on page 17 shows that income-taxing states have higher per-capita local tax collections than states without an income tax.

State and local governments should be encouraged by these findings show-ing that they are not hostage to situations beyond their control (climate, resources, etc.) but are instead in charge of their own destinies. Sustained economic prosperity and job growth is available to those that adopt a “Better

2020 Kansas Green Book Exploring the relationship between the

size of government and economic growth

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Service, Better Price” culture, where government constantly strives to provide the same or better quality of service at a better price and keeps tax burdens low.

Kansas is becoming much more competitive on income taxes, but is very uncompetitive on local property tax. The Property Tax section shows that Kansas has some of the highest effective tax rates in the nation. Between 1997 and 2019, 66 of Kansas’ 105 counties saw county property tax collec-tions more than double despite a decline in population. City and township property taxes only added to the burden. The size of local government is likely the greatest factor in Kansas’ local property tax problem. On a resi-dents per unit of general-purpose government (cities, counties, and town-ships) basis, Kansas ranks #48 among the fifty states and has more than five times the national average number of local government entities, with 1,460 residents per unit of general-purpose government versus a national average of 8.367 residents per unit of GPG. In many Kansas counties, government jobs account for more than a third and sometimes more than half of total jobs. The economic benefits of reducing state taxes will be diminished until substantive action is taken to reduce the local government footprint in Kansas.

Finally, the Economic Peer Group section returns to this year’s Green Book. Our January 2017 study “A Thousand Flowers Blooming: Understanding Job Growth and the Kansas Tax Reforms” gave rise to its addition. The study points—among other things—to the importance of comparing job growth in Kansas to that of states most similar to Kansas in terms of economic and industry makeup. Too often, comparisons stop at just Kansas’ neighboring states without bothering to consider whether those states have anything else in common with Kansas apart from geography. As such, this Green Book continues to offer comparisons across the nation as well as Kansas’ geo-graphic region but also compares Kansas to the seven-state peer group explored in “A Thousand Flowers Blooming” on a host of economic metrics. The peer group states were matched with each other based on the degrees to which their private sector workforces were employed in the same major industry sectors according to the U.S. Bureau of Economic Analysis.

Methodology Statement: All data and ranking sets presented are the most up-to-date available from each respective source at the time of printing. For most per capita calculations, population estimates were chosen from the year in which the data to be divided by the population estimate was published.

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State Rank 1998 2019 % Change

Alabama2 44 1,561.2 1,680.8 7.7% Alaska1,3,6 18 201.6 249.6 23.8% Arizona2 5 1,733.3 2,514.9 45.1% Arkansas2 31 936.8 1,065.2 13.7% California2,4 12 11,522.7 14,817.1 28.6%

Colorado2,5 8 1,735.0 2,330.3 34.3% Connecticut2,4,6 47 1,413.3 1,450.3 2.6% Delaware2 30 345.9 398.8 15.3% Florida1 7 5,656.1 7,829.4 38.4% Georgia2,5 16 3,165.0 3,923.5 24.0%

Hawaii2 14 419.1 529.4 26.3% Idaho2 3 418.9 632.1 50.9% Illinois2,4,6 45 5,077.6 5,292.6 4.2% Indiana2 42 2,525.6 2,736.9 8.4% Iowa2 38 1,206.6 1,325.2 9.8%

Kansas2 43 1,074.3 1,163.0 8.3% Kentucky2 34 1,460.2 1,627.4 11.5% Louisiana2,3 39 1,519.9 1,657.6 9.1% Maine2,4 32 474.8 534.2 12.5% Maryland2,4 23 1,896.3 2,262.2 19.3%

Massachusetts2 27 2,765.2 3,232.5 16.9% Michigan2,6 50 3,856.7 3,819.3 -1.0% Minnesota2,4 25 2,173.1 2,551.2 17.4% Mississippi2,3,6 49 911.9 916.5 0.5% Missouri2 41 2,273.2 2,465.1 8.4%

Montana2 10 294.6 393.0 33.4% Nebraska2 26 728.9 853.5 17.1% Nevada1,3 2 814.0 1,252.6 53.9% New Hampshire1,3 28 509.1 593.8 16.6% New Jersey2,4,6 35 3,228.8 3,589.0 11.2%

States with low tax burdens and those without an income tax have superior gains in jobs, Gross Domestic Product (GDP), wage and salary disbursement, and

domestic migration (US residents moving to a given state from another).

BLS JOBS BLS Total Private Sector Jobs (in thousands, not seasonally adjusted)

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New Mexico2,6 19 541.6 668.2 23.4% New York2,4 21 6,803.2 8,297.0 22.0% North Carolina2,5 22 3,154.6 3,841.7 21.8% North Dakota2,5 6 249.1 356.1 43.0% Ohio2 48 4,718.7 4,800.8 1.7%

Oklahoma2 29 1,167.3 1,350.3 15.7% Oregon2,4,5 13 1,296.1 1,641.7 26.7% Pennsylvania2 33 4,783.0 5,357.2 12.0% Rhode Island2,4,6 36 395.1 438.3 10.9% South Carolina2,3,5 17 1,467.8 1,817.3 23.8%

South Dakota1,3 15 290.8 360.7 24.0% Tennessee1,3,5 24 2,258.8 2,684.8 18.9% Texas1,3,5 4 7,443.7 10,829.5 45.5% Utah2,5 1 846.6 1,307.3 54.4% Vermont2 40 238.8 259.4 8.6%

Virginia2 20 2,720.7 3,327.7 22.3% Washington1,5 9 2,155.5 2,881.7 33.7% West Virginia2,6 46 552.8 567.7 2.7% Wisconsin2 37 2,323.6 2,575.5 10.8% Wyoming1,3,6 11 169.9 220.7 29.9%

Rankings Note: 1 = Highest Growth, 50= Lowest Growth

State Grouping 1998 2019 % Change 50-State Total 105,477.4 127,270.6 20.7% No Income Tax States1 19,499.5 26,902.8 38.0% Income-Taxing States2 85,977.9 100,367.8 16.7% 10 Lowest-Burden States3 15,587.5 20,583.1 32.0% 10 Highest-Burden States4 36,129.8 42,914.9 18.8% 10 Best Economic Performance5 23,772.2 31,613.9 33.0% 10 Worst Economic Performance6 16,349.3 17,212.2 5.3%

Jobs Ranking in the Region

43 41

268

29

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Sources: U.S. Bureau of Labor Statistics 10 Lowest/10 Highest-Burden States: Tax Foundation, State-Local Tax Burden Rankings (FY12) 10 Best/10 Worst Economic Performance: American Legislative Exchange Council, ALEC-Laffer Economic Performance Rankings (2007-2017)


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Alabama2 37 1,977.0 2,287.1 15.7% Alaska1,3,6 26 286.5 356.3 24.4% Arizona2 5 2,252.0 3,406.8 51.3% Arkansas2 39 1,244.3 1,436.5 15.4% California2,4 12 16,023.9 21,413.9 33.6%

Colorado2,5 7 2,363.3 3,364.1 42.3% Connecticut2,4,6 36 1,791.0 2,074.8 15.8% Delaware2 23 412.4 521.8 26.5% Florida1 4 7,260.3 11,264.5 55.2% Georgia2,5 8 3,928.5 5,494.5 39.9%

Hawaii2 17 572.0 749.5 31.0% Idaho2 6 621.5 903.3 45.3% Illinois2,4,6 44 6,268.8 7,082.4 13.0% Indiana2 46 3,125.6 3,520.2 12.6% Iowa2 47 1,628.8 1,816.4 11.5%

Kansas2 42 1,452.4 1,644.6 13.2% Kentucky2 35 1,894.8 2,199.4 16.1% Louisiana2,3 27 1,929.2 2,377.3 23.2% Maine2 40 645.0 740.9 14.9% Maryland2,4 16 2,426.7 3,191.3 31.5%

Massachusetts2 21 3,456.2 4,408.3 27.6% Michigan2,6 49 4,718.1 5,113.9 8.4% Minnesota2,4 31 2,793.9 3,366.6 20.5% Mississippi2,3,6 43 1,180.6 1,335.1 13.1% Missouri2 45 2,938.9 3,310.4 12.6%

Montana2 15 447.6 589.8 31.8% Nebraska2 34 977.2 1,159.9 18.7% Nevada1,3 1 1,007.8 1,669.2 65.6% New Hampshire1,3 30 662.2 800.6 20.9% New Jersey2,4,6 24 3,913.9 4,947.1 26.4%

New Mexico2,6 28 739.0 909.9 23.1% New York2,4 14 8,460.6 11,196.0 32.3% North Carolina2,5 20 3,991.8 5,192.9 30.1%

BEA JOBS BEA Total Private Sector Jobs (in thousands)

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North Dakota2,5 9 358.6 493.3 37.6% Ohio2 48 5,796.0 6,288.0 8.5%

Oklahoma2 29 1,618.3 1,962.4 21.3% Oregon2,4,5 19 1,758.9 2,288.5 30.1% Pennsylvania2 33 5,895.8 7,025.9 19.2% Rhode Island2,4,6 32 479.7 575.7 20.0% South Carolina2,3,5 13 1,827.6 2,431.1 33.0%

South Dakota1,3 22 414.7 525.1 26.6% Tennessee1,3,5 25 2,935.6 3,667.7 24.9% Texas1,3,5 3 9,883.3 15,523.2 57.1% Utah2,5 2 1,115.8 1,802.1 61.5% Vermont2 38 331.7 383.0 15.5%

Virginia2 18 3,391.1 4,439.6 30.9% Washington1,5 10 2,841.3 3,903.8 37.4% West Virginia2,6 50 718.9 751.3 4.5% Wisconsin2 41 2,883.2 3,299.0 14.4% Wyoming1,3,6 11 247.6 330.9 33.7%

State Grouping 1998 2018 % Change 50-State Total 135,889.7 175,535.7 29.2% No Income Tax States1 25,539.3 38,041.3 49.0% Income-Taxing States2 110,350.4 137,494.4 24.6% 10 Lowest-Burden States3 20,375.0 29,018.5 42.4% 10 Highest-Burden States4 46,800.6 59,435.1 27.0% 10 Best Economic Performance5 31,004.7 44,161.2 42.4% 10 Worst Economic Performance6 20,344.1 23,477.4 15.4%

Jobs Ranking in the Region

42 45

347

29

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Note: Unlike BLS employment data, BEA data includes farm employment and most proprietor employment. As such, it is more comprehensive but takes longer to compile, making 2018 data the most recent available.


Sources: Bureau of Economic Analysis (BEA) 10 Lowest/10 Highest-Burden States: Tax Foundation, State-Local Tax Burden Rankings (FY12) 10 Best/10 Worst Economic Performance: American Legislative Exchange Council, ALEC-Laffer Economic Performance Rankings (2007-2017)

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Alabama2 43 41,979,512 77,928,367 86% Alaska1,3,6 23 6,799,563 14,592,191 115% Arizona2 7 52,969,019 132,443,973 150% Arkansas2 30 23,377,146 47,552,891 103% California2,4 8 426,872,185 1,065,468,380 150%

Colorado2,5 12 58,266,963 141,710,202 143% Connecticut2,4,6 47 59,359,642 101,617,087 71% Delaware2 40 11,880,722 22,563,577 90% Florida1 10 165,278,626 404,182,856 145% Georgia2,5 21 101,277,512 219,050,881 116%

Hawaii2 17 12,195,967 27,008,892 121% Idaho2 6 10,898,002 27,310,247 151% Illinois2,4,6 45 181,353,485 333,741,151 84% Indiana2 46 75,560,171 135,789,924 80% Iowa2 31 31,424,691 63,309,102 101%

Kansas2 39 30,276,656 58,003,552 92% Kentucky2 37 39,361,189 76,475,917 94% Louisiana2,3 34 42,721,602 84,263,534 97% Maine2 32 12,441,779 24,781,629 99% Maryland2,4 19 63,022,578 137,422,752 118%

Massachusetts2 16 106,805,400 238,222,947 123% Michigan2,6 50 134,854,276 207,731,794 54% Minnesota2,4 26 70,958,453 149,996,656 111% Mississippi2,3,6 48 22,329,063 38,144,691 71% Missouri2 42 67,802,009 126,759,819 87%

Montana2 5 6,644,546 16,901,396 154% Nebraska2 24 19,301,221 41,095,093 113% Nevada1,3 9 25,355,714 62,273,409 146% New Hampshire1,3 27 16,088,550 33,865,165 110% New Jersey2,4,6 44 127,347,407 234,839,781 84%

New Mexico2,6 22 13,931,468 29,940,745 115% New York2,4 25 284,751,987 605,419,720 113% North Carolina2,5 18 92,026,219 200,822,360 118%

WAGES Private Sector Wage & Salary Disbursement (in thousands of current dollars)

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North Dakota2,5 1 5,768,590 18,962,141 229% Ohio2 49 146,106,362 249,068,054 70%

Oklahoma2 20 29,734,267 64,613,267 117% Oregon2,4,5 15 39,447,718 89,287,766 126% Pennsylvania2 35 150,872,577 297,351,930 97% Rhode Island2,4,6 33 11,725,065 23,210,545 98% South Carolina2,3,5 28 39,470,999 82,685,263 109%

South Dakota1,3 11 6,571,764 15,984,937 143% Tennessee1,3,5 29 65,244,737 135,317,742 107% Texas1,3,5 3 243,782,262 630,638,402 159% Utah2,5 2 23,595,735 65,558,507 178% Vermont2 36 6,386,396 12,408,686 94%

Virginia2 14 86,320,735 196,004,165 127% Washington1,5 4 75,649,799 195,296,384 158% West Virginia2,6 41 14,150,835 26,477,939 87% Wisconsin2 38 66,880,905 129,183,146 93% Wyoming1,3,6 13 4,392,835 10,538,121 140%

State Grouping 1998 2018 % Change

50-State Total 3,451,614,904 7,423,817,676 115%

No Income Tax States1 609,163,850 1,502,689,207 147% Income-Taxing States2 2,842,451,054 5,921,128,469 108%

10 Lowest-Burden States3 472,757,089 1,108,303,455 134% 10 Highest-Burden States4 1,331,719,425 2,870,186,919 116%

10 Best Economic Performance5 744,530,534 1,779,329,648 139% 10 Worst Economic Performance6 576,243,639 1,020,834,045 77%

Wages Ranking in the Region

39 42

2412

20

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Note: Wages include farm wages and salaries.

Sources: U.S. Bureau of Labor Statistics 10 Lowest/10 Highest-Burden States: Tax Foundation, State-Local Tax Burden Rankings (FY12) 10 Best/10 Worst Economic Performance: American Legislative Exchange Council, ALEC-Laffer Economic Performance Rankings (2007-2017)

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Alabama2 36 91,523 185,176 102% Alaska1,3,6 18 18,925 43,908 132% Arizona2 15 124,350 304,622 145% Arkansas2 34 54,787 112,060 105% California2,4 6 1,005,117 2,656,839 164%

Colorado2,5 13 130,750 327,529 151% Connecticut2,4,6 46 131,597 247,894 88% Delaware2 42 33,520 66,327 98% Florida1 14 375,804 925,501 146% Georgia2,5 26 233,384 523,376 124%

Hawaii2 9 29,648 75,387 154% Idaho2 10 26,317 66,869 154% Illinois2,4,6 41 393,060 782,671 99% Indiana2 40 166,936 333,000 99% Iowa2 24 74,500 167,910 125%

Kansas2 30 67,780 146,618 116% Kentucky2 45 95,243 179,948 89% Louisiana2,3 29 105,090 228,636 118% Maine2 37 27,734 55,944 102% Maryland2,4 16 135,304 329,244 143%

Massachusetts2 19 221,621 514,123 132% Michigan2,6 50 279,669 471,654 69% Minnesota2,4 27 148,715 332,291 123% Mississippi2,3,6 49 51,322 95,298 86% Missouri2 48 150,359 281,716 87%

Montana2 12 17,037 42,977 152% Nebraska2 17 44,527 108,314 143% Nevada1,3 8 58,333 151,214 159% New Hampshire1,3 32 36,050 75,697 110% New Jersey2,4,6 43 286,091 557,709 95%

New Mexico2,6 39 38,548 77,195 100% New York2,4 23 658,862 1,491,751 126% North Carolina2,5 21 214,737 490,022 128%

GDP (Gross Domestic Product) Private Sector GDP (in millions of current dollars)


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North Dakota2,5 1 14,196 49,813 251% Ohio2 47 321,758 603,476 88%

Oklahoma2 11 67,850 171,936 153% Oregon2,4,5 20 91,205 209,540 130% Pennsylvania2 31 333,248 707,859 112% Rhode Island2,4,6 38 26,195 52,600 101% South Carolina2,3,5 25 88,245 198,177 125%

South Dakota1,3 5 17,305 46,091 166% Tennessee1,3,5 28 147,450 323,568 119% Texas1,3,5 3 572,809 1,615,722 182% Utah2,5 2 52,902 156,405 196% Vermont2 35 13,963 28,452 104%

Virginia2 22 191,229 435,155 128% Washington1,5 4 180,470 494,746 174% West Virginia2,6 44 33,896 65,388 93% Wisconsin2 33 144,853 300,065 107% Wyoming1,3,6 7 12,471 32,826 163%

State Grouping 1998 2018 % Change

50-State Total 7,837,286 17,941,235 129%

No Income Tax States1 1,419,619 3,709,272 161% Income-Taxing States2 6,417,667 14,231,963 122%

10 Lowest-Burden States3 1,108,001 2,811,135 154% 10 Highest-Burden States4 3,020,999 6,960,604 130%

10 Best Economic Performance5 1,726,147 4,388,899 154% 10 Worst Economic Performance6 1,271,775 2,427,141 91%

GDP Rankings in the Region

30 48

1713

11

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Sources: U.S. Bureau of Economic Analysis (Last updated 4/7/2020) 10 Lowest/10 Highest-Burden States: Tax Foundation, State-Local Tax Burden Rankings (FY12) 10 Best/10 Worst Economic Performance: American Legislative Exchange Council, ALEC-Laffer Economic Performance Rankings (2007-2017)

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Alabama2 20 100,294 4,903,185 2% Alaska1,3,6 47 -67,593 731,545 -9% Arizona2 2 1,167,386 7,278,717 16% Arkansas2 18 87,870 3,017,804 3% California2,4 39 -2,423,515 39,512,223 -6%

Colorado2,5 7 565,939 5,758,736 10% Connecticut2,4,6 45 -294,317 3,565,287 -8% Delaware2 9 86,096 973,764 9% Florida1 5 2,477,271 21,477,737 12% Georgia2,5 11 822,220 10,617,423 8%

Hawaii2 42 -102,524 1,415,872 -7% Idaho2 4 225,266 1,787,065 13% Illinois2,4,6 49 -1,499,689 12,671,821 -12% Indiana2 27 -72,781 6,732,219 -1% Iowa2 34 -79,041 3,155,070 -3%

Kansas2 40 -178,780 2,913,314 -6% Kentucky2 23 69,336 4,467,673 2% Louisiana2,3 46 -420,582 4,648,794 -9% Maine2 17 45,297 1,344,212 3% Maryland2,4 37 -256,219 6,045,680 -4%

Massachusetts2 41 -433,629 6,892,503 -6% Michigan2,6 44 -807,237 9,986,857 -8% Minnesota2,4 28 -70,056 5,639,632 -1% Mississippi2,3,6 36 -112,724 2,976,149 -4% Missouri2 26 -18,677 6,137,428 0%

Montana2 10 89,314 1,068,778 8% Nebraska2 35 -61,362 1,934,408 -3% Nevada1,3 1 609,570 3,080,156 20% New Hampshire1,3 16 46,371 1,359,711 3% New Jersey2,4,6 48 -951,359 8,882,190 -11%

New Mexico2,6 32 -40,972 2,096,829 -2% New York2,4 50 -3,064,832 19,453,561 -16% North Carolina2,5 6 1,144,743 10,488,084 11%

DOMESTIC MIGRATION 2000-2019

Total Domestic 2019 Est. DM % State Rank Migration Population of Pop.

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North Dakota2,5 21 14,876 762,062 2% Ohio2 38 -585,784 11,689,100 -5%

Oklahoma2 22 67,444 3,956,971 2% Oregon2,4,5 8 411,080 4,217,737 10% Pennsylvania2 33 -296,604 12,801,989 -2% Rhode Island2,4,6 43 -84,361 1,059,361 -8% South Carolina2,3,5 3 678,381 5,148,714 13%

South Dakota1,3 19 20,297 884,659 2% Tennessee1,3,5 12 519,964 6,829,174 8% Texas1,3,5 14 1,993,796 28,995,881 7% Utah2,5 15 134,752 3,205,958 4% Vermont2 31 -11,920 623,989 -2%

Virginia2 25 99,521 8,535,519 1% Washington1,5 13 571,502 7,614,893 8% West Virginia2,6 30 -26,055 1,792,147 -1% Wisconsin2 29 -82,562 5,822,434 -1% Wyoming1,3,6 24 8,858 578,759 2%

State Grouping Total DM 2019 Est. Pop. % DM

No Income Tax States1 6,180,036 71,552,515 9% Income-Taxing States2 -6,165,767 255,981,259 -2%

10 Lowest-Burden States3 3,276,338 55,233,542 6% 10 Highest-Burden States4 -8,315,830 106,869,926 -8%

10 Best Economic Performance5 6,857,253 83,638,662 8% 10 Worst Economic Performance6 -3,875,449 44,340,945 -9%

Domestic Migration Ranking in the Region

40 26

357

22

14

Total Domestic 2019 Est. DM % State Rank Migration Population of Pop.

Rankings Note: 1 = Highest Migration, 50= Lowest Migration

Sources: 10 Lowest/10 Highest-Burden States: Tax Foundation, State-Local Tax Burden Rankings (FY12) 10 Best/10 Worst Economic Performance: American Legislative Exchange Council, ALEC-Laffer Economic Performance Rankings (2007-2017) Estimates of the Components of Resident Population Change: April 1, 2010 to July 1, 2019, U.S. Census Bureau, Population Division

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A look at how Kansas compares to states with a similar economic makeup and mix of industries

ECONOMIC PEER GROUP BEA Private Sector Jobs (in thousands) 1998 Private Sector 2018 Private Sector '98-'18 State Employment Employment Change Rank Alabama 1,977.0 2,287.1 15.7% 3 Arkansas 1,244.3 1,436.5 15.4% 4 Iowa 1,628.8 1,816.4 11.5% 7 Kansas 1,452.4 1,644.6 13.2% 5 Kentucky 1,894.8 2,199.4 16.1% 2 Michigan 4,718.1 5,113.9 8.4% 9 Missouri 2,938.9 3,310.4 12.6% 6 Nebraska 977.2 1,159.9 18.7% 1 Ohio 5,796.0 6,288.0 8.5% 8

BLS Private Sector Jobs (in thousands, not seasonally adjusted) 1998 Private Sector 2019 Private Sector '98-'19 State Employment Employment Change Rank Alabama 1,561.2 1,680.8 7.7% 7 Arkansas 936.8 1,065.2 13.7% 2 Iowa 1,206.6 1,325.2 9.8% 4 Kansas 1,074.3 1,163.0 8.3% 6 Kentucky 1,460.2 1,627.4 11.5% 3 Michigan 3,856.7 3,819.3 -1.0% 9 Missouri 2,273.2 2,465.1 8.4% 5 Nebraska 728.9 853.5 17.1% 1 Ohio 4,718.7 4,800.8 1.7% 8

Private Sector Wages (in thousands of current dollars)

State 1998 2018 '98-'18 Change Rank Alabama 41,979,512 77,928,367 85.6% 7 Arkansas 23,377,146 47,552,891 103.4% 2 Iowa 31,424,691 63,309,102 101.5% 3 Kansas 30,276,656 58,003,552 91.6% 5 Kentucky 39,361,189 76,475,917 94.3% 4 Michigan 134,854,276 207,731,794 54.0% 9 Missouri 67,802,009 126,759,819 87.0% 6 Nebraska 19,301,221 41,095,093 112.9% 1 Ohio 146,106,362 249,068,054 70.5% 8

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Private Sector GDP (in millions of current dollars) State 1998 2018 '98-'18 Change Rank Alabama 91,523 185,176 102% 5 Arkansas 54,787 112,060 105% 4 Iowa 74,500 167,910 125% 2 Kansas 67,780 146,618 116% 3 Kentucky 95,243 179,948 89% 6 Michigan 279,669 471,654 69% 9 Missouri 150,359 281,716 87% 8 Nebraska 44,527 108,314 143% 1 Ohio 321,758 603,476 88% 7

Domestic Migration ‘00-’19 Total 2019 Estimate DM % of State Domestic Migraton Population Population Rank Alabama 100,294 4,903,185 2% 2 Arkansas 87,870 3,017,804 3% 1 Iowa -79,041 3,155,070 -3% 5 Kansas -178,780 2,913,314 -6% 8 Kentucky 69,336 4,467,673 2% 3 Michigan -807,237 9,986,857 -8% 9 Missouri -18,677 6,137,428 0% 4 Nebraska -61,362 1,934,408 -3% 6 Ohio -585,784 11,689,100 -5% 7

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State Local State+Local State per capita Rank per capita Rank per capita Rank

Alabama2 2,137 9 1,233 8 3,370 1 Alaska1,3,6 1,607 1 2,488 41 4,095 19 Arizona2 2,173 12 1,508 15 3,682 6 Arkansas2 3,168 37 836 1 4,003 16,4 California2,4 3,938 43 2,212 37 6,150 42

Colorado2,5 2,380 14 2,529 42 4,910 32 Connecticut2,4,6 4,650 48 3,052 46 7,703 49 Delaware2 3,731 42 7,751 50 4,861 29 Florida1 1,970 5 1,735 22 3,704 7 Georgia2,5 2,150 10 1,584 19 3,734 9

Hawaii2 4,924 49 1,701 21 6,625 46 Idaho2 2,620 20 1,088 4 3,708 8 Illinois2,4,6 2,967 32 2,790 45 5,757 40 Indiana2 2,726 25 1,182 6 3,907 12 Iowa2 3,101 35 1,888 27 4,989 33

Kansas2 2,806 27 1,823 25 4,629 25 Kentucky2 2,673 23 1,220 7 3,894 11 Louisiana2,3 2,319 13 1,947 28 4,265 22 Maine2 3,168 37 2,131 33 5,299 37 Maryland2,4 3,569 40 2,704 44 6,273 44

Massachusetts2 4,010 44 2,559 43 6,569 45 Michigan2,6 2,876 30 1,316 9 4,192 21 Minnesota2,4 4,590 47 1,577 18 6,167 43 Mississippi2,3,6 2,589 18 1,077 3 3,665 5 Missouri2 2,044 6 1,774 24 3,818 10

Montana2 2,527 16 1,381 14 3,908 13 Nebraska2 2,658 22 2,455 39 5,113 35 Nevada1,3 2,877 31 1,604 20 4,481 24 New Hampshire1,3 1,930 3 3,061 47 4,991 34 New Jersey2,4,6 3,676 41 3,298 48 6,974 48

New Mexico2,6 2,701 24 1,362 12 4,062 17 New York2,4 4,014 45 4,941 49 8,955 50

States with low state tax burdens can also have lower local tax burdens.

TAX COLLECTIONS (per capita)

17

North Carolina2,5 2,615 19 1,345 11 3,960 15 North Dakota2,5 4,587 46 2,075 30 6,663 47 Ohio2 2,528 17 2,104 31 4,633 26

Oklahoma2 2,168 11 1,365 13 3,533 4 Oregon2,4,5 2,858 29 1,859 26 4,717 27 Pennsylvania2 2,998 33 2,196 36 5,195 36 Rhode Island2,4,6 3,083 34 2,465 40 5,548 39 South Carolina2,3,5 1,956 4 1,564 17 3,520 3

South Dakota1,3 2,102 8 2,175 35 4,278 23 Tennessee1,3,5 2,069 7 1,337 10 3,406 2 Texas1,3,5 1,894 2 2,270 38 4,164 20 Utah2,5 2,525 15 1,540 16 4,065 18 Vermont2 5,063 50 1,038 2 6,100 41

Virginia2 2,621 21 2,172 34 4,793 28 Washington1,5 3,240 39 2,115 32 5,356 38 West Virginia2,6 2,805 26 1,153 5 3,957 14 Wisconsin2 3,129 36 1,759 23 4,888 31 Wyoming1,3,6 2,847 28 2,015 29 4,863 30

Rankings Note: 1= lowest amount, 50= highest amount

State Grouping State Local State+Local 50-State Total 2,911 2,171 5,062 No Income Tax States1 2,126 1,989 4,115 Income-Taxing States2 3,126 2,221 5,322 Difference from No Income Tax States 47% 12% 29% 10 Lowest-Burden States3 2,061 1,977 4,038 10 Highest-Burden States4 3,757 2,864 6,621 Difference from Low Burden States 82% 45% 64% 10 Best Economic Performance5 2,288 1,900 4,188 10 Worst Economic Performance6 3,159 2,314 5,473 Difference from Best Economic Performance 38% 22% 31%

State + Local Tax Collections Rankings in the Region

25 10

3532

4

20

Sources: U.S. Census Bureau, 2017 Annual Surveys of State and Local Government Finances & 2017 Population Estimates 10 Lowest/10 Highest-Burden States: Tax Foundation, State-Local Tax Burden Rankings (FY12) 10 Best/10 Worst Economic Performance: American Legislative Exchange Council, ALEC-Laffer Economic Performance Rankings (2007-2017)

State Local State+Local State per capita Rank per capita Rank per capita Rank

Spending State per resident Rank 50-State Average $4,131 –

Alabama2 3,420 14 Alaska1,3,6 9,069 50 Arizona2 2,945 5 Arkansas2 5,864 41 California2,4 4,409 26

Colorado2,5 5,247 35 Connecticut2,4,6 6,745 45 Delaware2 8,383 49 Florida1 2,327 1 Georgia2,5 3,402 13

Hawaii2 8,054 48 Idaho2 3,009 7 Illinois2,4,6 4,341 24 Indiana2 2,995 6 Iowa2 5,422 36

Kansas2 4,040 20 Kentucky2 4,836 31 Louisiana2,3 4,051 21 Maine2 4,189 22 Maryland2,4 4,997 32

Massachusetts2 5,795 40 Michigan2,6 3,575 16 Minnesota2,4 5,000 33 Mississippi2,3,6 3,750 18 Missouri2 2,855 4

Montana2 3,849 19 Nebraska2 4,686 28 Nevada1,3 3,084 8 New Hampshire1,3 2,773 3 New Jersey2,4,6 4,828 30

New Mexico2,6 5,468 37 New York2,4 5,231 34 North Carolina2,5 3,302 11 North Dakota2,5 5,778 39 Ohio2 4,423 27

Oklahoma2 3,746 17 Oregon2,4,5 7,154 47 Pennsylvania2 4,305 23 Rhode Island2,4,6 5,709 38 South Carolina2,3,5 3,243 10

South Dakota1,3 3,434 15 Tennessee1,3,5 3,186 9 Texas1,3,5 2,585 2 Utah2,5 3,332 12 Vermont2 5,884 42

Virginia2 4,808 29 Washington1,5 4,347 25 West Virginia2,6 6,841 46 Wisconsin2 6,300 44 Wyoming1,3,6 6,056 43

Spending State per resident Rank

SPENDING PER RESIDENT (2018 Actual)

18

Low-burden states keep their tax burdens low by spending less and finding ways to provide better service at a better price.

Spending per Resident in the Region

20 4

2835

17

2

State Grouping

50-State Average 4,131

No Income Tax States1 2,883 Income-Taxing States2 4,477 Difference from No Income Tax States 55%

10 Lowest-Burden States3 3,078 10 Highest-Burden States4 4,951 Difference from Low Burden States 61%

10 Best Economic Performance5 3,501 10 Worst Economic Performance6 4,707 Difference from Best Economic Performance 34%

Spending per resident

19

Rankings Note: 1 = Lowest Spending, 50= Highest Spending Sources: National Association of State Budget Officers, Note: Spending figure excludes spending from federal money and the issuance of bonds 10 Lowest/10 Highest-Burden States: Tax Foundation, State-Local Tax Burden Rankings (FY12) 10 Best/10 Worst Economic Performance: American Legislative Exchange Council, ALEC-Laffer Economic Performance Rankings (2007-2017)

20

State Local State+Local State Gov. Emp. Rank Gov. Emp. Rank Gov. Emp. Rank 50-State Avg. 134.6 -- 376.2 -- 510.8 --

Alabama 188.2 39 392.7 40 580.9 40 Alaska 332.8 49 372.9 27 705.7 49 Arizona 101.7 4 287.7 5 389.5 2 Arkansas 207.4 42 355.6 18 563.0 38 California 108.3 6 366.3 21 474.5 7

Colorado 155.8 24 370.7 24 526.5 25 Connecticut 165.2 31 351.6 16 516.7 21 Delaware 263.2 48 247.9 2 511.1 20 Florida 85.2 1 338.2 11 423.5 3 Georgia 125.3 10 372.0 26 497.4 16

Hawaii 408.7 50 118.9 1 527.6 27 Idaho 142.3 17 346.4 14 488.7 9 Illinois 95.6 2 388.6 37 484.2 8 Indiana 144.3 18 350.9 15 495.2 13 Iowa 161.8 30 430.1 45 591.8 41

Kansas 184.3 37 510.7 49 695.1 48 Kentucky 190.9 40 356.2 19 547.2 35 Louisiana 159.1 27 394.7 41 553.8 37 Maine 148.5 21 371.7 25 520.1 23 Maryland 139.9 15 363.5 20 503.5 17

Massachusetts 151.2 23 344.4 12 495.7 14 Michigan 148.1 20 289.3 6 437.4 4 Minnesota 150.3 22 389.5 39 539.8 33 Mississippi 183.3 36 444.4 46 627.6 45 Missouri 138.7 14 381.9 33 520.5 24

Montana 187.5 38 351.7 17 539.2 32 Nebraska 166.0 32 466.8 47 632.8 46 Nevada 98.5 3 285.4 4 383.9 1 New Hampshire 141.1 16 375.5 28 516.7 21 New Jersey 156.5 25 376.6 30 533.1 31

GOVERNMENT EMPLOYMENT (FTE per 10,000 Residents)

Higher government employment levels and more local government entities increase the overall cost of services in a given city or county.

21

New Mexico 216.6 44 378.1 32 594.8 42 New York 126.7 12 490.4 48 617.1 43 North Carolina 134.9 13 415.1 43 550.0 36 North Dakota 237.6 47 383.1 34 620.7 44 Ohio 115.9 7 388.8 38 504.8 18

Oklahoma 160.0 28 369.6 23 529.6 28 Oregon 173.7 35 320.7 9 494.5 12 Pennsylvania 125.3 10 312.2 8 437.5 5 Rhode Island 173.6 34 279.1 3 452.7 6 South Carolina 156.6 26 375.6 29 532.1 29

South Dakota 161.3 29 385.4 36 546.8 34 Tennessee 118.5 8 377.1 31 495.7 14 Texas 107.6 5 419.9 44 527.5 26 Utah 196.9 41 295.8 7 492.7 11 Vermont 229.0 46 406.0 42 634.9 47

Virginia 148.0 19 384.5 35 532.5 30 Washington 169.9 33 335.4 10 505.3 19 West Virginia 220.3 45 346.0 13 566.4 39 Wisconsin 122.7 9 366.6 22 489.3 10 Wyoming 214.1 43 654.4 50 868.5 50

Ranking Notes: FTE = Full-Time Equivalent 1 = Lowest FTE Employees 50= Highest FTE Employees

State + Local Government Employment Rankings in the Region

48 24

4625

28

26Sources: U.S. Census Bureau, Survey of Public Employment and Payroll (2018) U.S. Census Bureau, 2018 Population Estimates

State Local State+Local State Gov. Emp. Rank Gov. Emp. Rank Gov. Emp. Rank

22

50-State Total 38,779 8,419 --

Alabama 528 9,257 25 Alaska 164 4,497 40 Arizona 106 67,657 4 Arkansas 576 5,232 34 California 539 73,390 3

Colorado 333 17,104 13 Connecticut 179 19,959 10 Delaware 60 16,120 14 Florida 478 44,559 5 Georgia 689 15,268 18

Hawaii 4 355,123 1 Idaho 244 7,189 28 Illinois 2,828 4,505 39 Indiana 1,662 4,026 41 Iowa 1,042 3,029 42

Kansas 1,993 1,461 48 Kentucky 535 8,352 26 Louisiana 364 12,802 22 Maine 504 2,656 44 Maryland 180 33,571 6

Massachusetts 356 19,388 12 Michigan 1,856 5,386 33 Minnesota 2,720 2,063 46 Mississippi 380 7,859 27 Missouri 1,341 4,569 38

Montana 183 5,805 31 Nebraska 988 1,953 47 Nevada 35 86,697 2 New Hampshire 244 5,559 32 New Jersey 586 15,202 19

New Mexico 138 15,184 20 New York 1,587 12,314 23 North Carolina 652 15,926 16 North Dakota 1,718 442 50 Ohio 2,327 5,023 35

Oklahoma 667 5,912 30 Oregon 276 15,184 21 Pennsylvania 2,625 4,879 36 Rhode Island 39 27,111 7 South Carolina 316 16,089 15

South Dakota 1,279 690 49 Tennessee 437 15,492 17 Texas 1,472 19,499 11 Utah 279 11,330 24 Vermont 293 2,138 45

Virginia 323 26,371 8 Washington 320 23,549 9 West Virginia 287 6,292 29 Wisconsin 1,924 3,022 43 Wyoming 122 4,736 37

GENERAL PURPOSE GOVERNMENTS

# of Res. per State GPG unit of gov. Rank

Residents per unit of General Purpose Government in the Region

48 38

4713

30

12

Rankings Note: 1 = Highest Number of Residents Served Per Unit 50= Lowest Number of Residents Served Per Unit

Sources: U.S. Census Bureau, 2017 Census of Governments: Organization Component Estimates U.S. Census Bureau, 2018 Population Estimates

# of Res. per State GPG unit of gov. Rank

Cities, Counties, Townships

In many Kansas counties, government jobs account for more than a third and sometimes more than half of total jobs.

PRIVATE SECTOR EMPLOYMENT (KANSAS 2018)

23

TOTAL GOVERNMENT EMPLOYMENT (KANSAS 2018)

24

STATE & FEDERAL GOVERNMENT EMP. (KANSAS 2018)

25

LOCAL GOVERNMENT EMPLOYMENT (KANSAS 2018)

26

27

States that adopted income taxes became less competitive.

STATES ADOPTING AN INCOME TAX (Since 1960)

Source: © 2014 An Inquiry into The Nature and Causes of the Wealth of States, Dr. Arthur B. Laffer, Stephen Moore, Rex A. Sinquefield, Travis H. Brown, Table 1.1. The authors said that, due to data limi-tations, shares of personal income were substituted for Indiana and West Virginia's shares of GSP.

Decline in Shares of 39 Remaining States First Year Gross State State & Local State of Tax Population Product Tax Revenue

Connecticut 1991 -18% -20% -4% New Jersey 1976 -26% -21% -3% Ohio 1972 -37% -47% -27% Rhode Island 1971 -36% -33% -22% Pennsylvania 1971 -38% -41% -28%

Maine 1969 -25% -23% 0% Illinois 1969 -34% -41% -24% Nebraska 1968 -30% -19% -17% Michigan 1967 -35% -57% -46% Indiana 1963 -29% -38% -32%

West Virginia 1961 -50% -47% -37%

Property tax, mill rate, and population changes in Kansas’ counties and largest cities

CITIES (Changes in Property Tax, Mill Rate & Population)1997-2019

28

Class-A Cities Property Tax Mill Rate Population* Andover 637% 40% 130% Arkansas City 80% 7% -9% Atchison 102% 1% 0% Coffeyville 93% 26% -21% Derby 305% 21% 31% Dodge City 102% 12% 23% El Dorado 151% 25% -2% Emporia 108% 22% -2% Fort Scott 113% 29% -6% Garden City 161% 9% 11% Gardner 567% -14% 249% Great Bend 95% 11% -2% Hays 71% -21% 11% Hutchinson 112% 15% 5% Junction City 133% -7% 40% Kansas City 34% -34% 7% Lansing 455% 73% 39% Lawrence 284% 47% 25% Leavenworth 17% -37% -9% Leawood 236% 5% 36% Lenexa 189% 18% 39% Liberal 176% 79% 16% Manhattan 261% 19% 32% McPherson 158% 18% -3% Merriam 184% 40% -8% Newton 126% 20% 7% Olathe 294% -2% 65% Ottawa 161% 9% 5% Overland Park 299% 46% 40% Parsons 100% 33% -15% Pittsburg 150% 35% 10% Prairie Village 188% 18% -6% Salina 122% 16% 6% Shawnee 315% 17% 48% Topeka 108% 22% 2% Wichita 125% 5% 19% Winfield 70% 12% 2%

Note: Inflation grew by 52% from 1997-2019 (Bureau of Labor Statistics, Midwest Urban Cities) Sources: Kansas Department of Revenue, U.S. Census *Population is 2019 data

County Property Tax Mill Rate Population

Allen 327% 82% -14% Anderson 235% 59% -2% Atchison 191% 28% -3% Barber 250% 59% -15% Barton 191% 59% -9%

Bourbon 180% 57% -4% Brown 174% -18% -13% Butler 224% 17% 10% Chase 104% 2% -10% Chautauqua 121% 39% -25%

Cherokee 196% 60% -11% Cheyenne 293% 80% -17% Clark 100% 39% -17% Clay 177% 12% -12% Cloud 196% 28% -12%

Coffey 107% 102% -6% Comanche 160% 88% -10% Cowley 207% 79% -5% Crawford 143% 33% 7% Decatur 123% -2% -18%

Dickinson 293% 74% -5% Doniphan 265% 13% -2% Douglas 376% 88% 27% Edwards 105% 27% -15% Elk 135% 64% -24%

Ellis 178% 19% 8% Ellsworth 96% -2% -1% Finney 133% 69% 2% Ford 141% 27% 18% Franklin 197% 36% 4%

Geary 287% 55% 35% Gove 271% 53% -15% Graham 94% -4% -22% Grant -21% 71% -4% Gray 163% 18% 11%

COUNTIES (County-only Data per Kansas Dept. of Revenue)1997-2019

29

Greeley 159% 80% -31% Greenwood 95% 46% -24% Hamilton 44% 74% 14% Harper 89% -6% -14% Harvey 172% 38% 1%

Haskell 185% 279% 0% Hodgeman 105% 18% -19% Jackson 244% 44% 11% Jefferson 144% 16% 5% Jewell 216% 22% -27%

Johnson 264% 24% 41% Kearny 59% 292% -6% Kingman 192% 94% -14% Kiowa 147% 48% -27% Labette 176% 76% -13%

Lane 184% 51% -28% Leavenworth 249% 30% 14% Lincoln 237% 29% -9% Linn 214% 71% 7% Logan 222% 36% -7%

Lyon 187% 35% -2% Marion 258% 83% -82% Marshall 235% 14% -42% McPherson 167% 15% 647% Meade 131% 48% -4%

Miami 195% 12% 27% Mitchell 422% 120% -11% Montgomery 188% 52% -13% Morris 216% 57% -11% Morton 52% 247% -20%

Nemaha 228% 4% -1% Neosho 207% 56% -5% Ness 135% 36% -19% Norton 106% -9% -6% Osage 438% 170% -7%

Osborne 21% -50% -25% Ottawa 250% 57% 0% Pawnee 140% 37% -9%


30

Phillips 154% 44% -12% Pottawatomie 153% 16% 31%

Pratt 184% 19% -2% Rawlins 110% -22% -22% Reno 221% 89% 0% Republic 146% 6% -24% Rice 83% -16% -8%

Riley 290% 27% 16% Rooks 88% -8% -11% Rush 123% 36% -10% Russell 135% 34% -9% Saline 332% 127% 6%

Scott 252% 94% -2% Sedgwick 112% -3% 17% Seward 123% 77% 12% Shawnee 135% 30% 5% Sheridan 148% -5% -8%

Sherman 176% 32% -10% Smith 213% 38% -21% Stafford 116% 22% -18% Stanton 71% 255% -12% Stevens 21% 275% 5%

Sumner 136% 4% -14% Thomas 265% 64% -4% Trego 153% 4% -15% Wabaunsee 262% 61% 3% Wallace 261% 88% -14%

Washington 192% 13% -17% Wichita 154% 22% -22% Wilson 130% 18% -15% Woodson 171% 70% -21% Wyandotte 202% 43% 8% All Counties 174% N/A 11%


31

Note: Inflation grew by 52% from 1997-2019 (Bureau of Labor Statistics, Midwest Urban Cities) Sources: Kansas Department of Revenue, U.S. Census Bureau

Rank State City Net Tax ETR

1 Illinois Aurora* 5,386 3.590% 2 Connecticut Bridgeport 5,160 3.440% 3 Michigan Detroit 4,916 3.277% 4 New Jersey Newark 4,445 2.963% 5 Wisconsin Milwaukee 3,897 2.598%

6 Oregon Portland 3,683 2.455% 7 Iowa Des Moines 3,480 2.320% 8 Maryland Baltimore 3,241 2.161% 9 New Hampshire Manchester 3,168 2.112% 10 Vermont Burlington 3,158 2.106%

11 Nebraska Omaha 2,999 2.000% 12 Ohio Columbus 2,948 1.966% 13 Rhode Island Providence 2,696 1.797% 14 New York Buffalo* 2,646 1.764% 15 Texas Houston 2,626 1.750%

16 Maine Portland 2,601 1.734% 17 Missouri Kansas City 2,364 1.576% 18 Mississippi Jackson 2,303 1.535% 19 South Dakota Sioux Falls 2,298 1.532% 20 Delaware Wilmington 2,156 1.437%

21 Illinois Chicago 2,141 1.427% 22 Alaska Anchorage 2,058 1.372% 23 Arizona Phoenix 1,908 1.272% 24 New Mexico Albuquerque 1,880 1.254% 25 Minnesota Minneapolis 1,798 1.199%

26 Florida Jacksonville 1,790 1.194% 27 Kansas Wichita 1,776 1.184% 28 Oklahoma Oklahoma City 1,758 1.172% 29 Kentucky Louisville 1,724 1.149% 30 Nevada Las Vegas 1,711 1.141%

32

Wichita and Iola represent Kansas among the country’s highest respective urban and rural tax rates.

U.S. PROPERTY TAX (Urban Homestead Payable 2018)

$150,000 Property without Assessment Limits

31 California Los Angeles 1,710 1.140% 32 Arkansas Little Rock 1,644 1.096% 33 Pennsylvania Philadelphia 1,636 1.091% 34 North Dakota Fargo 1,605 1.070% 35 Indiana Indianapolis 1,574 1.050%

36 New York New York City 1,498 0.999% 37 North Carolina Charlotte 1,470 0.980% 38 Montana Billings 1,415 0.943% 39 Virginia Virginia Beach 1,357 0.905% 40 Washington Seattle 1,328 0.885%

41 Tennessee Nashville** 1,183 0.789% 42 West Virginia Charleston 1,128 0.752% 43 Louisiana New Orleans 1,124 0.750% 44 Idaho Boise 1,113 0.742% 45 Utah Salt Lake City 1,097 0.731%

46 Georgia Atlanta 1,048 0.698% 47 Alabama Birmingham 1,025 0.683% 48 Wyoming Cheyenne 966 0.644% 49 Colorado Denver 846 0.564% 50 South Carolina Charleston 766 0.511%

52 Hawaii Honolulu 242 0.162% 53 Massachusetts Boston 143 0.095%

AVERAGE 2,099 1.399%

33


Notes:

*Illinois and New York have two cities included in this table because the tax systems in Chicago and New York City are significantly different from the rest of the state.

**Nashville, TN is now the largest city in the state and replaces Memphis, TN.

"Copyright © June 2019 Lincoln Institute of Land Policy and Minnesota Center for Fiscal Excellence.From the 50-State Property Tax Comparison Study. www.lincolninst.edu.

The study uses effective tax rates (ETRs) given their ability to capture “the effects of all statutory tax provisions as well as the effects of local assessment practices…[giving them] the virtue of allowing more meaningful comparisons across states and property types” (Lincoln Land Institute and Min-nesota Center for Fiscal Excellence 44).

1 Rhode Island Providence 46,245 3.854% 2 Michigan Detroit 45,943 3.829% 3 Illinois Chicago 42,623 3.552% 4 Connecticut Bridgeport 41,490 3.457% 5 Illinois Aurora* 40,021 3.335%

6 Iowa Des Moines 37,465 3.122% 7 Missouri Kansas City 34,465 2.872% 8 Mississippi Jackson 33,292 2.774% 9 Wisconsin Milwaukee 32,735 2.728% 10 Maryland Baltimore 32,604 2.717%

11 Kansas Wichita 32,497 2.708% 12 Minnesota Minneapolis 31,273 2.606% 13 Indiana Indianapolis 30,908 2.576% 14 New Jersey Newark 29,633 2.469% 15 Oregon Portland 29,465 2.455%

16 Vermont Burlington 29,030 2.419% 17 Texas Houston 28,660 2.388% 18 Arizona Phoenix 27,443 2.287% 19 New York Buffalo* 26,628 2.219% 20 Colorado Denver 26,373 2.198%

21 Ohio Columbus 25,943 2.162% 22 Louisiana New Orleans 24,751 2.063% 23 Maine Portland 24,503 2.042% 24 Nebraska Omaha 24,246 2.021% 25 Pennsylvania Philadelphia 23,521 1.960%

26 South Carolina Charleston 21,763 1.814% 27 Massachusetts Boston 21,420 1.785% 28 New Hampshire Manchester 21,123 1.760% 29 West Virginia Charleston 20,049 1.671% 30 Florida Jacksonville 19,724 1.644%

31 Georgia Atlanta 18,237 1.520% 32 Alaska Anchorage 18,194 1.516% 33 New Mexico Albuquerque 17,807 1.484%

U.S. PROPERTY TAX (Urban Commercial Payable 2018)$1 Million-Valued Property ($200,000 Fixtures)


34

34 Alabama Birmingham 17,270 1.439% 35 Delaware Wilmington 17,108 1.426%

36 Arkansas Little Rock 16,803 1.400% 37 South Dakota Sioux Falls 16,101 1.342% 38 Idaho Boise 15,878 1.323% 39 Oklahoma Oklahoma City 15,598 1.300% 40 Utah Salt Lake City 15,440 1.287%

41 Kentucky Louisville 15,439 1.287% 43 Tennessee Nashville** 14,513 1.209% 44 California Los Angeles 14,353 1.196% 45 Montana Billings 13,718 1.143% 46 Nevada Las Vegas 13,670 1.139%

47 New York New York City 13,668 1.139% 48 North Carolina Charlotte 12,426 1.036% 49 Hawaii Honolulu 12,239 1.020% 50 North Dakota Fargo 11,625 0.969% 51 Virginia Virginia Beach 11,474 0.956%

52 Washington Seattle 10,757 0.896% 53 Wyoming Cheyenne 7,502 0.625%

AVERAGE 23,417 1.951%


35

Notes:





U.S. PROPERTY TAX (Urban Industrial Payable 2018)$1 Million-Valued Property (50% Personal Property) ($500,000 M&E, $400,000 Inventory, $100,000 Fixtures)


1 Mississippi Jackson 56,013 2.801% 2 Michigan Detroit 54,453 2.723% 3 Texas Houston 47,853 2.393% 4 South Carolina Charleston 46,693 2.335% 5 Missouri Kansas City 45,526 2.276%

6 Louisiana New Orleans 42,226 2.111% 7 Indiana Indianapolis 42,037 2.102% 8 Illinois Chicago 41,117 2.056% 9 Rhode Island Providence 40,665 2.033% 10 Arizona Phoenix 40,048 2.002%

11 Illinois Aurora* 40,021 2.001% 12 Oregon Portland 39,286 1.964% 13 Iowa Des Moines 39,075 1.954% 14 Connecticut Bridgeport 37,684 1.884% 15 Colorado Denver 35,320 1.766%

16 West Virginia Charleston 33,415 1.671% 17 Vermont Burlington 33,289 1.664% 18 Nebraska Omaha 33,193 1.660% 19 Alaska Anchorage 31,314 1.566% 20 Minnesota Minneapolis 30,762 1.538%

21 Wisconsin Milwaukee 30,001 1.500% 22 New Jersey Newark 29,633 1.482% 23 Kansas Wichita 29,567 1.478% 24 Georgia Atlanta 28,179 1.409% 26 Oklahoma Oklahoma City 28,076 1.404%

27 Arkansas Little Rock 28,019 1.401% 28 Maryland Baltimore 27,013 1.351% 29 Florida Jacksonville 26,645 1.332% 30 New York Buffalo* 26,628 1.331% 31 Ohio Columbus 25,499 1.275%

32 New Mexico Albuquerque 24,052 1.203% 33 Pennsylvania Philadelphia 23,521 1.176%

36


34 Alabama Birmingham 23,070 1.153% 35 Maine Portland 22,255 1.113% 36 Tennessee Nashville** 22,085 1.104%

37 Idaho Boise 22,001 1.100% 38 Massachusetts Boston 21,420 1.071% 39 New Hampshire Manchester 21,123 1.056% 40 Utah Salt Lake City 20,778 1.039% 41 California Los Angeles 19,137 0.957%

42 Nevada Las Vegas 18,260 0.913% 43 Montana Billings 17,848 0.892% 44 North Carolina Charlotte 17,674 0.884% 45 Delaware Wilmington 17,108 0.855% 46 South Dakota Sioux Falls 16,101 0.805%

47 Washington Seattle 14,563 0.728% 48 Kentucky Louisville 14,482 0.724% 49 Wyoming Cheyenne 13,160 0.658% 50 Hawaii Honolulu 11,937 0.597% 51 North Dakota Fargo 11,625 0.581%

52 New York New York City 11,565 0.578% 53 Virginia Virginia Beach 9,874 0.494%

AVERAGE 28,511 1.426%

37

Notes:





U.S. PROPERTY TAX (Rural Homestead Payable 2018)$150,000-Valued Property


1 New York Warsaw 4,637 3.091% 2 New Hampshire Lancaster 4,379 2.919% 3 Pennsylvania Ridgway 4,297 2.864% 4 New Jersey Maurice River Twp 4,158 2.772% 5 Vermont Hartford 3,488 2.325%

6 Illinois Galena 3,305 2.203% 7 Massachusetts Adams 3,265 2.177% 8 Wisconsin Rice Lake 3,227 2.151% 9 Michigan Manistique 3,138 2.092% 10 Nebraska Sidney 3,130 2.086%

11 Rhode Island Hopkinton 3,050 2.033% 12 Maine Rockland 3,000 2.000% 13 Connecticut Litchfield 2,993 1.995% 14 Kansas Iola 2,958 1.972% 15 Iowa Hampton 2,928 1.952%

16 South Dakota Vermillion 2,762 1.841% 17 Maryland Denton 2,662 1.774% 18 Ohio Bryan 2,371 1.581% 19 Florida Moore Haven 2,357 1.571% 20 Georgia Fitzgerald 2,349 1.566%

21 Washington Okanogan 2,014 1.343% 22 Texas Fort Stockton 2,002 1.335% 23 Minnesota Glencoe 1,955 1.303% 24 Nevada Fallon 1,900 1.266% 25 Mississippi Philadelphia 1,804 1.203%

26 Oregon Tillamook 1,743 1.162% 27 North Carolina Edenton 1,702 1.135% 28 North Dakota Devils Lake 1,698 1.132% 29 Missouri Boonville 1,660 1.107% 30 Alaska Ketchican 1,646 1.097%

31 Montana Glasgow 1,636 1.090% 32 Kentucky Morehead 1,578 1.052% 33 California Yreka 1,510 1.007%

38


34 Indiana North Vernon 1,436 0.957% 35 New Mexico Santa Rosa 1,350 0.900%

36 South Carolina Mullins 1,286 0.857% 37 Oklahoma Mangum 1,233 0.822% 38 Arizona Safford 1,215 0.810% 39 Wyoming Worland 1,065 0.710% 40 Utah Richfield 1,048 0.699%

41 Idaho St. Anthony 1,011 0.674% 42 Tennessee Savannah 1,009 0.673% 43 Virginia Wise 883 0.589% 44 Delaware Georgetown 876 0.584% 45 Colorado Walsenburg 805 0.537%

46 West Virginia Elkins 784 0.523% 47 Arkansas Pocahontas 714 0.476% 48 Louisiana Natchitoches 662 0.441% 49 Alabama Monroeville 571 0.381% 50 Hawaii Kauai 75 0.050%

AVERAGE 2,066 1.378%

39

Note: Rural cities chosen for this study largely have populations between 2,500-10,000, are designated as "county seats," and are classified as rural areas by the U.S. Department of Agriculture.



U.S. PROPERTY TAX (Rural Commercial Payable 2018)$1 Million-Valued Property ($200,000 Fixtures)


1 Kansas Iola 52,830 4.403% 2 Michigan Manistique 35,306 2.942% 3 New York Warsaw 35,066 2.922% 4 South Carolina Mullins 34,089 2.841% 5 Indiana North Vernon 33,930 2.828%

6 Minnesota Glencoe 31,713 2.643% 7 Pennsylvania Ridgway 29,880 2.490% 8 New Hampshire Lancaster 29,195 2.433% 9 New Jersey Maurice River Twp 27,718 2.310% 10 Maine Rockland 27,696 2.308%

11 Wisconsin Rice Lake 27,364 2.280% 12 Colorado Walsenburg 27,159 2.263% 13 Maryland Denton 26,259 2.188% 14 Nebraska Sidney 26,244 2.187% 15 Florida Moore Haven 26,136 2.178%

16 Arizona Safford 25,544 2.129% 17 Mississippi Philadelphia 25,250 2.104% 18 Iowa Hampton 25,091 2.091% 19 Illinois Galena 25,035 2.086% 20 Massachusetts Adams 25,010 2.084%

21 Vermont Hartford 25,000 2.083% 22 Missouri Boonville 24,767 2.064% 23 Rhode Island Hopkinton 24,345 2.029% 24 Texas Fort Stockton 23,565 1.964% 25 South Dakota Vermillion 22,645 1.887%

26 Georgia Fitzgerald 20,635 1.720% 27 Ohio Bryan 18,486 1.541% 28 Connecticut Litchfield 16,781 1.398% 29 Washington Okanogan 16,292 1.358% 30 Utah Richfield 16,177 1.348%

31 Montana Glasgow 16,139 1.345% 32 Idaho St. Anthony 16,032 1.336% 33 Nevada Fallon 15,299 1.275%

40


34 Louisiana Natchitoches 15,087 1.257% 35 Kentucky Morehead 14,251 1.188%

36 Oregon Tillamook 13,945 1.162% 37 North Carolina Edenton 13,638 1.137% 38 West Virginia Elkins 13,339 1.112% 39 North Dakota Devils Lake 13,334 1.111% 40 Alaska Ketchican 13,001 1.083%

41 New Mexico Santa Rosa 12,777 1.065% 42 California Yreka 12,670 1.056% 43 Tennessee Savannah 12,380 1.032% 44 Oklahoma Mangum 10,880 0.907% 45 Alabama Monroeville 9,832 0.819%

46 Virginia Wise 9,548 0.796% 47 Arkansas Pocahontas 9,093 0.758% 48 Wyoming Worland 8,842 0.737% 49 Hawaii Kauai 6,885 0.574% 50 Delaware Georgetown 4,727 0.394%

AVERAGE 20,938 1.745%

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U.S. PROPERTY TAX (Rural Industrial Payable 2018)$1 Million-Valued Property (50% Personal Property) ($500,000 M&E, $400,000 Inventory, $100,000 Fixtures)


1 South Carolina Mullins 74,072 3.704% 2 Texas Fort Stockton 50,782 2.539% 3 Kansas Iola 48,364 2.418% 4 Indiana North Vernon 45,930 2.297% 5 Mississippi Philadelphia 42,084 2.104%

6 Colorado Walsenburg 36,211 1.811% 7 Nebraska Sidney 35,662 1.783% 8 Florida Moore Haven 35,117 1.756% 9 New York Warsaw 35,066 1.753% 10 Michigan Manistique 34,906 1.745%

11 Arizona Safford 34,360 1.718% 12 Missouri Boonville 33,119 1.656% 13 Minnesota Glencoe 31,713 1.586% 14 Georgia Fitzgerald 30,702 1.535% 15 Pennsylvania Ridgway 29,880 1.494%

16 New Hampshire Lancaster 29,195 1.460% 17 New Jersey Maurice River Twp 27,718 1.386% 18 Louisiana Natchitoches 25,723 1.286% 19 Maine Rockland 25,388 1.269% 20 Vermont Hartford 25,133 1.258%

21 Iowa Hampton 25,091 1.255% 22 Wisconsin Rice Lake 25,078 1.254% 23 Illinois Galena 25,035 1.252% 24 Massachusetts Adams 25,010 1.250% 25 Ohio Bryan 24,064 1.203%

26 South Dakota Vermillion 22,645 1.132% 27 Idaho St. Anthony 22,439 1.122% 28 Rhode Island Hopkinton 22,338 1.117% 29 Maryland Denton 22,309 1.115% 30 Washington Okanogan 22,022 1.101%

31 West Virginia Elkins 21,991 1.100% 32 Montana Glasgow 21,054 1.053%

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33 Nevada Fallon 20,423 1.021% 34 Oklahoma Mangum 19,583 0.979% 35 Tennessee Savannah 18,839 0.942%

36 Oregon Tillamook 18,593 0.930% 37 North Carolina Edenton 18,218 0.911% 38 Utah Richfield 17,904 0.895% 39 Alaska Ketchican 17,641 0.882% 40 New Mexico Santa Rosa 17,088 0.854%

41 California Yreka 16,893 0.845% 42 Virginia Wise 15,038 0.752% 43 Arkansas Pocahontas 14,864 0.743% 44 Connecticut Litchfield 14,842 0.742% 45 Wyoming Worland 14,534 0.727%

46 Kentucky Morehead 13,474 0.674% 47 North Dakota Devils Lake 13,334 0.667% 48 Alabama Monroeville 13,112 0.656% 49 Hawaii Kauai 7,533 0.377% 50 Delaware Georgetown 4,727 0.236%

AVERAGE 25,737 1.287%

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