Good and Bad States

[Edsel]

I don't know whether the features of this board allow it, but I would like for many of us to rank the 5 best states to work with, as well as the 5 worst.

Factors to be considered are favorable/unfavorable tax rates, access to state taxation personnel, complexity of work, efficiency of operation, and length of time required to correct problems.  I don't have intimate experience in all areas with every state mentioned below, but from what I know, here are my 5 best, in descending order:

1. Nevada
2. Alaska
3. Wyoming
4. N Dakota
5. Montana

and my 5 worst, in ascending order:

1. New Jersey
2. California
3. Illinois
4. Rhode Island
5. Pennsylvania

Many of you have extensive experience in other states - would love to hear from you.

 

[WITAXLADY]

hhmm - IOWA is a real pain as have to mfj, mfs but 2 to get different scenarios of tax and take lowest!!

 

WI is both!!

They are great as many states give credit for NOTHING! and WI gives lots of credits both resident and part year! But that is why they are bad - you have to catch all those credits and ATX never gets them all - have to know them, and manually input them both WI NPR and WI 1

Why is CA bad?

[Lee B]

These kind of lists are so arbitrary and biased, depending on  selection parameters and weighting factors,

that they tend to say more about the list maker than anything else.

[Abby Normal]

I can only speak to states that I hate doing their tax returns and that list is:

1. Ohio
2. Pennsylvania
3. New Jersey
4. Massachusetts
5. ???

All states are difficult when you only do a few, though. They have additions, subtractions and credits that too easy to miss.

[Edsel]

10 hours ago, cbslee said:

These kind of lists are so arbitrary and biased, depending on  selection parameters and weighting factors,

that they tend to say more about the list maker than anything else.

Ah yes, since I am the list maker, I wonder what all is being said about me this time.  Maybe some are, but my guess is most readers have better things to do.  I do agree that the lists are faulty depending on selection parameters and weighting factors. 

However, if a sufficiently large sampling were taken, there would be a tendency to cluster a reasonably consistent group of states at the top, and at the bottom as well.  It had nothing to do with my selection, but I don't think it is an accident that my perception of the "best" states are sparsely populated, and the worst have very large population centers.

You do get a broad-based idea of who you're dealing with if your experience is not limited to personal returns.  Payroll can bring on an entirely different perspective if you have a multi-state payroll.  One particularly memorable event for me was a discussion with a Rhode Island tax assistant.

I have always heard horror stories about "Taxachusetts."  I found it strange that in the cluster of small northeastern states, that Rhode Island did not have reciprocity with MA.  When I asked the RI lady, she said "Not just no, but  _ _ _ _ no!!"  "No way is THAT going to happen!!"  I guess neighboring states up there don't really like each other.  When I started comparing the states, I found that RI is much, much more onerous than MA.  In fact, MA is reasonably well-run except for high rates and some degree of complexity.

State taxation issues can be fascinating.  I wondered why Minnesota ceased reciprocity with Wisconsin.  This actually hurt Wisconsin more because the larger population centers on the border (Minneapolis, St Paul, Duluth) were all on the MN side.  I found out that MN was sending Wisconsin reciprocity money every month, and WI delayed their payments by a full year.  No wonder.

 

[FDNY]

Good States

1.  Happiness

2.  Positive

3.  Blissful

4.  Confident

5.  Alcohol Induced

Bad States

1.  Dilemma

2.  Poor State

3.  Desperate Straits

4.  Predicament

5.  Alcohol Induced

And of course the State of Affairs can be anything.

 

[JohnH]

Well stated.

[Catherine]

Does this make FDNY our resident statesman?

[FDNY]

I've got enough of my own problems to deal with, but thank you for the thought and the stately suggestion.