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Report: Minnesota isn't the top state for business anymore, it's No. 4

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Minnesota is no longer the top state for business, CNBC says. Don't worry, it's still in the top five, though.

Last year, the news source recognized Minnesota as the number one state in the U.S. for doing business.

When that happened, CNBC noted that it was the first time a "high-tax, high-wage, union-friendly state" made it to the top.

And this year, high taxes are a big part of the reason CNBC dropped the state to fourth place.

The list ranks states based on how well they score in more than 60 different "measures of competitiveness." Then those measures are separated into 10 broader categories and ranked.

Minnesota ranked highly in the "Quality of life" and "Education" categories, coming in at second in the nation.

But Minnesota's "Cost of doing business" came in at 35th in the U.S.

CNBC says that's "an unfortunate consequence of taxes that are among the highest in the nation."

Earlier this this year, Forbes put together a list of all the states, ranking them in order of which have the best taxes to which have the worst. Minnesota trailed at the back end, being number 43.

Minnesota has a state and local tax burden of 10.8 percent. That's compared with New York – which came in dead last – at 12.7 percent, and Alaska – which was number one with 6.5 percent.

CNBC also noted that economy and job growth slowed a bit last year, but Minnesota's unemployment was still well below the national average. Minnesota's unemployment rate was 3.7 in March while the national rate was five percent.

"Business friendliness" and "Cost of living" also dropped Minnesota's score.

So what states are the best for business?

Utah is ranked at number one. However, the state still scored worse than Minnesota in some categories including infrastructure, quality of life, technology and innovation, education, and access to capital.

It's followed by Texas, Colorado, Minnesota and North Carolina.

All of Minnesota's bordering states made the top half of the list with Iowa at number nine, North Dakota at 12, South Dakota at 19 and Wisconsin at 23.

Check out the full list here.

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