RENO, Nev. (AP) - A report says Nevada ranks second nationally for its friendliness to small businesses primarily because of its favorable tax structure.

Nevada was second only to South Dakota in the Small Business Survival Index, which looked at all 50 states.

The index's rankings are based primarily on a state's public policies and how they affect small businesses.

Nevada ranked first in several areas, including tax rates for personal and corporate income and capital gains.

Nevada also ranked first for having the lowest number of government employees per 100 residents.

California was ranked 49th overall in the index.

The report was released by the Small Business & Entrepreneurship Council based in Oakton, Va.

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Information from: Reno Gazette-Journal, http://www.rgj.com

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