New York’s tax climate continues to rank as one of the least hospitable to conduct business, according to the latest Tax Foundation ranking released on Tuesday.
The group ranked New York 49th overall in business climate, 48th for individual taxes, 43rd in sales taxes, 13th in corporate taxes, 46th for property taxes, and 38th for unemployment insurance taxes.
The state’s business groups weren’t necessarily surprised.
“New York again ranking near the bottom nationally in terms of its business tax burden is the latest reminder that much work remains to make the Empire State more competitive and affordable for small businesses,” said Greg Biryla, NFIB’s New York State Director.
“Making the property tax cap permanent last year was an essential step to control the long-term growth of local property taxes, but continued action is clearly needed,” he continued. “New York should prioritize tax relief for small businesses on Main Street, which are most likely to reinvest in their growth, workforce, and communities.”
Unshackled Upstate, a Rochester-based business group, pointed to New York dropping a notch in the ranking.
“Until Albany improves our harsh business climate, employers will continue to struggle and residents will continue to flee to more welcoming states,” the group said.
In a statement, Gov. Andrew Cuomo’s office noted the gains made over the last decade in controlling taxes in New York. Cuomo successfully pushed for a cap on property tax increases that limits levy growth at 2 percent or the rate of inflation.
The cap was made permanent in the most recent legislative session.
He also successfully won the passage of income tax cuts aimed at middle-income earners, with rates lowered to levels not seen in decades.
Cuomo has also railed against the federal government’s cap on state and local taxes set at $10,000. The move, he contends, is aimed at higher tax states like New York.