It’s not only Uncle Sam that needs money. State governments also collect tax revenues—even the seven that don’t have a state income tax. But some of them do a better job at giving taxpayers a bang for their buck—or to put it into Wall Street terminology, give better return on investment (ROI).
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And the best at that is Wyoming, according to WalletHub.com, a finances-focused online community for consumers, which released its “Taxpayer ROI” survey results this week. Next is Alaska, followed by the above-mentioned South Dakota, Washington and then North Dakota.
ROI State Taxes
|Highest ROI rank||State|
“We don’t advocate tax policy one way or the other,” said Odysseas Papadimitriou, CEO of WalletHub.com and credit card rating firm CardHub.com.
“But we are a consumer-based organization, so we wanted to let people know what they were getting for their tax dollars,” he said. “Taxes are one of the biggest expenses people have.”
Those with the lowest ROI start with Arkansas, followed by Mississippi, Louisiana, the District of Columbia, (not a state of course but included in the survey) and then North Carolina. (See the full rankings here)
ROI State Taxes
|4||District of Columbia|
To determine which states provided the best benefits for taxes collected, WalletHub examined the latest information on services that are funded by state and local tax dollars. The firm looked at the quality of public roads and transportation services, commuter times, educational services and how many public parks the state has.
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WalletHub also looked at health issues like hospital rankings and mortality rates. It considered water and air pollution as well as delving into crime statistics, and rated the growth rate of the state’s economy and the jobless rate.
State government tax collections totaled $846.2 billion in fiscal 2013, according to the U.S Census Bureau. That’s up 6.1 percent from the $797.7 billion collected in fiscal 2012.
—By CNBC’s Mark Koba.