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Published September 28, 2009, 08:46 AM

ND improves in business tax rankings.

North Dakota shows improvement in a study on how each state taxes businesses.

BISMARCK, N.D. (AP) - North Dakota shows improvement in a study

on how each state taxes businesses. But it still lags behind its

neighbors.

The Washington, D.C.-based Tax Foundation produces an annual

report on the business tax climates of states. It's most recent

study ranks North Dakota 25th among the 50 states, after four years

of ratings in the low 30s. The foundation's rankings are considered

important by legislators and economic development officials.

South Dakota, which has no individual or corporate income tax,

was ranked first.

Montana was rated sixth among the 50 states. Minnesota's

business tax climate was ranked 43rd.

North Dakota Tax Commissioner Cory Fong says the Legislature

helped improve the state's ranking by cutting individual income and

corporate tax rates and reducing the number of corporate tax

brackets from five to three.

Fong says North Dakota's tax system may never attain a top

rating because tax collections are spread across income, sales and

property.

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