For Release — Thursday, July 26, 2001
ON NEW YORK'S 'TAX GAP' WITH OTHER STATES: CENSUS BUREAU RELEASES DATA
ON STATE-LEVEL TAXES FOR FISCAL 2000; OVERALL STATE-AND-LOCAL TAX GAP
COUNCIL SAYS NEW DATA ARGUE FOR SPENDING RESTRAINT, MORE TAX CUTS
The U.S. Census Bureau released data today showing that the extra burden of state-level taxes in New York was 14.5 percent in fiscal 2000, an improvement from the previous year but slightly higher than the 1998 "tax gap."
As of 1999-2000, New Yorkers paid an average of $2,199 per capita in state taxes. (See table, below.) The average for all 50 states was $1,921. By another measure, state taxes as a proportion of personal income, state taxes in New York are slightly below the national average. That figure for New York was $67.68 per $1,000 of personal income, compared to $69.52 nationally.
The Census data released today also showed that state-level personal income and corporate income taxes in New York remain far higher than those in most states. State personal income taxes in the Empire State averaged $1,222 per person, nearly 77 percent above average. Corporate income taxes were 27 percent above average. General sales and gross receipts tax collections in New York were relatively low, and the state ranked 39th among all the states in that measure. Sales and gross receipts taxes on utilities, though, were more than double the national average.
Earlier in July, the Census Bureau released combined state-and-local government figures for fiscal 1998, showing that the "tax gap" between New York and other states the extra cost of state and local taxes in the Empire State compared to the average nationwide was continuing decline and was at its lowest level in years.
For fiscal year 1998, combined state and local taxes in New York totaled $4,318 per person. That was 50.8 percent above the average for all states, and second-highest in the nation behind Connecticut. (See second table, below.) The last time New York's tax gap was nearly so low was in 1981. By another measurement, taxes compared to personal income in each state, New York's combined state and local taxes were 26.8 percent above the national average in 1998. (See third table, below.)
The Census Bureau is the authoritative source of financial data on all 50 states. The Public Policy Institute, research affiliate of The Business Council, analyzed the Census data to compare taxes and spending in New York with those in other states.
"Governor Pataki and the Legislature have made great progress in cutting our tax gap and making New York more competitive," said Daniel B. Walsh, president of The Business Council and CEO of the Institute. "A lot of work still remains. It's important that this year's state budget continue to cut taxes and hold the line on spending, to make further tax cuts possible in the years ahead."
The per-capita tax gap in New York was down from 52.9 percent in 1997, and 60.5 percent in 1994, when state leaders began to cut taxes after several years of tax increases.
Local taxes remain the Empire State's major competitive problem, at more than twice the national average on a per-capita basis, the new Census data show. Local taxes in New York averaged $2,329 for every resident, by far the highest of any state. The taxes imposed by state government in New York were 13.4 percent above average on a per-capita basis.
The Institute's analysis of the state-and-local tax data also showed:
- Property taxes in New York totaled $1,345 per person, fourth-highest in the nation and 58 percent above average.
- Both personal income taxes and corporate income taxes in the Empire State were second-highest in the country, at 99 percent and 170 percent above average, respectively.
- State and local government spending totaled $8,446 per capita in New York, 49 percent above the national average.
- New York ranked eighth in education spending per capita, nearly 19 percent above average.
- Social services spending was far higher in the Empire State than elsewhere, at $2,105 per person. That was nearly a third higher than the second-highest state, Alaska. The category includes cash assistance and government spending on health care, hospitals and social services administration.
- New Yorkers owed an average of $8,567 in combined state and local government debt. That figure was second-highest among the states and 80 percent above the national average.
The new Census data are available through the Governments section of the Census Bureau website. Following is a list of tables compiled by the Public Policy Institute showing other key tax-comparison data.
and Local Taxes Per Capita 1998
State and Local Taxes Per $1,000 Personal Income 1998
State-only Taxes Per Capita 1998
Local Government Taxes Per Capita 1998
Property Taxes Per Capita 1998
Personal Income Taxes Per Capita 1998
Corporate Income Taxes Per Capita 1998
State and Local Government Spending Per Capita 1998
State and Local Education Spending Per Capita 1998
State and Local Social Services Spending Per Capita 1998
State and Local Government Debt Per Capita 1998
State Corporate Income Taxes Per Capita 2000
State-only Taxes Per Capita 2000
State Personal Income Taxes Per Capita 2000
State Sales/Gross Receipts Taxes On Utilities, Per Capita 200