The 2010 edition of the Kosmont-Rose Institute Cost of Doing Business Survey was released this week, presenting findings from research by the Rose Institute of State and Local Government at Claremont McKenna College. The annual report, developed by the Rose Institute in collaboration with the Kosmont Companies, provides tax information about costs required to operate a business in 413 selected cities across the United States.
By using a proprietary approach to compare state and local government fees, the Survey provides objective comparative data to businesses that are considering a move or expansion through a review of fees, taxes, and economic incentives and programs that business would encounter in each city. Cities are ranked into one of five "Cost Rating" groups, ranging from Very Low Cost to Very High Cost. Then, the most expensive and least expensive cities are listed both nationally, within California and within Los Angeles County.
The ten most expensive U.S. cities for business in 2010 (in alphabetical order) are: Akron, Ohio; Chicago, Ill.; Columbus, Ga.; Jersey City, N.J.; New York, N.Y.; Newark, N.J.; Philadelphia, Pa.; Phoenix, Ariz.; Portland, Ore.; and San Francisco, Calif. These cities represent some of the highest property and business taxes in the country.
The top twenty least expensive cities are all west of the Mississippi River, with sixteen of them located in states that do not impose personal or corporate income tax. The ten least expensive U.S. cities for business in 2010 (in alphabetical order) are: Abilene, Texas; Austin, Texas; Cheyenne, Wyo.; Corpus Christi, Texas; Eugene, Ore.; Everett, Wash.; Fort Worth, Texas; Houston, Texas; Reno, Nev.; and Yakima, Wash.
Within California, the Bay Area and Los Angeles County remain high cost locations for business, with three of the ten most expensive California cities for business located in the Bay Area, and half in Los Angeles County. San Diego County remains the least expensive area in the state for business. California's high unemployment rate, deficit budget, and rising taxes are having an adverse effect on business development in the state, with thirteen of the 40 most expensive cities nationwide located in California. However, many local governments are considering tax breaks and reduced fees to create a more positive environment for local businesses.
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The ten most expensive California cities for business in 2010 (in alphabetical order) are: Berkeley, Beverly Hills, Culver City, Inglewood, Los Angeles, Oakland, Rancho Santa Margarita, San Bernardino, San Francisco, and Santa Monica.
The ten least expensive California cities for business in 2010 (in alphabetical order) are: Apple Valley, Costa Mesa, Dos Palos, Hesperia, Moorpark, Roseville, Sutter Creek, Unincorporated El Dorado County, Unincorporated Lake County, and Unincorporated Merced County.
Within Los Angeles County, over half of the cities received either a High or Very High Cost rating; three received a Very Low Cost rating. Half of the ten most expensive cities in California are in Los Angeles County, due in large part to high sales tax rates.
The ten most expensive Los Angeles County cities for business in 2010 (in alphabetical order) are: Bell, Beverly Hills, Compton, Culver City, El Segundo, Hawthorne, Inglewood, Los Angeles, Pomona, and Santa Monica.
The ten least expensive Los Angeles County cities for business in 2010 (in alphabetical order) are: Agoura Hills, Bell Gardens, Diamond Bar, Glendora, La Mirada, La Puente, Lancaster, Santa Fe Springs, Walnut, and Westlake Village.
The Rose Institute of State and Local Government at Claremont McKenna College is a public policy center providing research and management experiences for students while conducting and publishing research on a wide variety of issues related to California government and politics. The Kosmont-Rose Institute Cost of Doing Business Survey is produced in collaboration with the Kosmont Companies.
For more information about the Rose Institute, and to purchase the 2010 Kosmont-Rose Institute Cost of Doing Business Survey, visit rosereport.org/kosmont.