Businesses paid $554 billion in state and local taxes in fiscal year 2006, representing 45% of total taxes collected by all state and local governments, according to the annual study prepared by Ernst & Young LLP in conjunction with the Council On State Taxation (COST). 

Key findings of the study include:

State and local business taxes totalled $554 billion in FY2006, up 10.2 percent for the prior year.

Property taxes were the largest state and local business tax, accounting for $205 billion in 2006, representing 37% of total state and local business taxes.

Sales taxes on business inputs were the second largest state and local business tax, accounting for $125 billion in 2006, or 23% of total state and local business taxes.

Corporate income tax totalled $52 billion in 2006, representing 9% of total state and local taxes.