Gov. Mike Easley today announced that North Carolina has the nation's lowest state and local business effective tax rate, according to a study by tax experts with Ernst & Young, one of the world's leading accounting firms. The study, prepared for the Council on State Taxation (COST), found North Carolina's rate is 3.9 percent. The state is tied with four others for the lowest in the nation.

"It is no accident that North Carolina is the nation's most attractive state to new and expanding businesses," Easley said. "While our state offers an attractive business climate, we also provide the opportunities for education, workforce training and a quality of life that attracts employers."

The 50-state study used detailed public information to estimate the business share of a variety of 26 taxes at the state and local government levels. The study is conducted to provide state policy makers with a "factual basis to evaluate the current state and local tax burden," said Douglas L. Lindholm, president and executive director of the Council on State Taxation.

Earlier this month, Site Selection magazine rated North Carolina tops in the Southeast and 3^rd in the nation in attracting new industrial plants. The magazine's tracking of new corporate plant locations ranked the Mooresville/Statesville area of the state as the nation's No. 1 rural region and Greensboro/High Point as the nation's top region with a population of 200,000 to 1 million.

These ratings come as the state has made significant showing in major economic development indicators. They include:

• 4.6 percent unemployment rate for January 2007, down from 4.9 percent;
• 99,200 new jobs added to the state economy in the last 12 months;
• 6.2 percent job growth over the last five years compared with a national rate of 5.1 percent;
• 29.2 percent drop in the number of unemployed North Carolinians compared with 14.2 percent nationally over the past five years.

For more information on the Ernst & Young study go online to:
www.ey.com/global/content.nsf/US/Media_-_Release_-_02-27-07BDC