1. An Examination of Virginia’s Ranking in the Best/Top States for Business Prepared for Virginia Chamber Foundation Presented by Robert Sumichrast, Dean Richard Daugherty, Director January 26, 2017

2. Q & A SLIDES 37

3. TOTAL EFFECTIVE TAX RATES, % COMPARISON OF SELECTED STATES
Capital Intensive Manufacturer
Steel Company
Source: Location Matters, KPMG & Tax Foundation 38

4. TOTAL EFFECTIVE TAX RATES, % COMPARISON OF SELECTED STATES
New Capital Intensive Manufacturer
Steel Company
Income
Tax
Property
Sales UI
Total Effective Tax Rate
Virginia
0.0%
22.6%
1.0%
2.0%
23.8%
North Carolina
2.7%
6.0%
1.3%
0.2%
10.2%
Georgia
-1.3%
5.9%
Texas
0.1%
17.5%
1.9%
19.8%
Utah
1.8%
4.8%
0.4%
8.3%
Colorado
1.1%
18.5%
21.0%
Minnesota
2.3%
1.4%
0.8%
4.6%
Source: Location Matters, KPMG & Tax Foundation 39

5. TOTAL EFFECTIVE TAX RATES, % COMPARISON OF SELECTED STATES
Labor Intensive Manufacturer
Heavy Transportation Equipment Manufacturer
Source: Location Matters, KPMG & Tax Foundation 40

6. TOTAL EFFECTIVE TAX RATES, % COMPARISON OF SELECTED STATES
New Labor Intensive Manufacturer
Heavy Transportation Equipment Manufacturer
Income
Tax
Property
Sales UI
Total Effective Tax Rate
Virginia
0.1%
8.5%
2.3%
0.5%
11.4%
North Carolina
2.9%
3.1%
6.5%
Georgia
-3.6%
2.8%
Texas
0.2%
9.6%
4.5%
14.8%
Utah
3.2%
2.1%
0.9%
9.0%
Colorado
2.7%
8.8%
15.2%
Minnesota
4.2%
3.4%
9.8%
Source: Location Matters, KPMG & Tax Foundation 41

7. TOTAL EFFECTIVE TAX RATES, % COMPARISON OF SELECTED STATES
Distribution Center
Third-Party Logistics Provider
Source: Location Matters, KPMG & Tax Foundation 42

8. TOTAL EFFECTIVE TAX RATES, % COMPARISON OF SELECTED STATES
New Distribution Center
Third-Party Logistics Provider
Income
Tax
Property
Sales UI
Total Effective Tax Rate
Virginia
4.6%
24.2%
5.5%
1.0%
35.2%
North Carolina
4.4%
12.2%
7.3%
24.9%
Georgia
-6.9%
11.6%
13.0%
Texas
3.1%
39.4%
9.2%
52.7%
Utah
1.4%
8.9%
6.2%
1.8%
18.4%
Colorado
1.2%
36.3%
7.6%
0.9%
46.0%
Minnesota
0.2%
33.4%
7.9%
4.1%
45.6%
Source: Location Matters, KPMG & Tax Foundation 43