New York state's business tax climate continues to receive low marks from a national fiscal watchdog organization, according to a new ranking released on Tuesday.
The state's overall tax climate ranks 49th out of 50 states, between California (ranked 48th) and neighboring New Jersey (50th).
New York ranked last in personal taxes, 24th in corporate taxes , 49th in property taxes and 43rd in sales taxes.
Business organizations were not surprised by the ranking.
“For overburdened employers across New York, the Tax Foundation’s new 2023 State Business Tax Climate Index is anything but surprising. New York’s business tax climate — the second worse in the nation for the fifth year in a row — makes it very difficult for small businesses to grow and succeed," said Justin Wilcox, the executive director of the business-aligned Upstate United. "We need our leaders in Albany to step up and deliver broad-based tax relief in 2023. That relief is essential to restoring our economy, reviving our communities and reclaiming the title of the Empire State.”
New York's tax climate has been acknowledged by officials on both sides of the aisle and in the last decade the state sought to cap local property tax increases at 2% or at the rate of inflation, whichever is lower. A tax cut aimed at middle-income earners has also been phased in over the last several years.
In the last year, New York lawmakers and Gov. Kathy Hochul also agreed to a property tax rebate program for homeowners as well as a child tax credit, with checks hitting mailboxes this month. Republican candidate for governor Lee Zeldin has pledged an across-the-board tax cut if elected.
But income taxes on New York's wealthiest citizens have increased over the years, helping to grow the state's revenue and boost funding for schools in the process.