The Land Report

Rockies 2018

The Magazine of the American Landowner is an essential guide for investors, landowners, and those interested in buying or selling land. The award-winning quarterly is known for its annual survey of America's largest landowners, The Land Report 100.

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28 The LandReport | R O C K I E S 2 0 1 8 1 2 4 5 6 7 3 According to the Tax Foundation, Wyoming takes top honors for the lowest taxes nationwide. — Eric O'Keefe NO INDIVIDUAL INCOME TAX Only five states in the Union shun a personal income tax: Alaska, Florida, Nevada, South Dakota, and Wyoming. And at the other end of the spectrum, there's California, which has a top marginal income tax rate of 13.3 percent. NO CORPORATE INCOME TAX Only two states on the honor roll above don't levy a corporate income tax: South Dakota and Wyoming. Not surprisingly, these neighbors take top honors from the Tax Foundation in its 2018 State Business Tax Climate Index: South Dakota ranked second and the Cowboy State first. NO TAX ON RETIREMENT INCOME So you're not from Wyoming, yet you own property in the 44th state. Not to worry. The state legislature isn't eyeing your out-of-state retirement income. No wonder you want to become a resident. NO TAX ON MINERAL OWNERSHIP Wyoming shares a border with Nebraska, but few of its tax policies make it across the state line. The Cornhusker State has a top marginal individual income tax rate of 6.84 percent, and that's just the start. Nebraska's property taxes fall in the 2 percent range and apply to real property as well as personal property. This means that land, structures, wells, minerals, and even payments related to oil or gas leases are taxable. Wyoming has no mineral tax. NO ESTATE (DEATH) TAX Above a congressionally-mandated multimillion-dollar threshold, Uncle Sam rewards your demise with a 40 percent estate tax. According to Morgan Scarboro at the Tax Foundation, 14 states and the District of Columbia add insult to fatality by imposing their own estate tax. Washington tops the leaderboard at 20 percent. Wyoming's death tax? Goose egg. NO STATE GIFT TAX What if real property is transferred not at the time of death but when the donor is alive? Known as an inter vivos (among the living) gift, this is not taxed by Wyoming. YES DYNASTY TRUSTS OK. When it comes to dynasty trusts, Wyoming does not top the list. Several states actually allow the creation of legal instruments (such as a deed or a will) that exert control over a family's landholdings in perpetuity. Yes, forever. Short-sighted Wyoming only allows a family to shield real estate holdings from federal estate taxes for 1,000 years. To learn more about federal, state, and local taxation from the nation's leading independent tax policy non- profit, go to: TaxFoundation.org FrontGate LANDREPORT.COM The Cowboy State Rules! LINCOLN ROGERS / SHUTTERSTOCK.COM TA X AT I O N

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