Home

News

Contact:
Zack Hutchins
Director of Communications
518.465.7511

For Release — July 24, 2004

NEW CENSUS BUREAU DATA SHOW NEW YORK ONCE AGAIN LEADS THE NATION IN STATE AND LOCAL TAXES

ALBANY, N.Y.— No matter how you measure it, New York State is still No. 1 in combined state and local taxes, a Public Policy Institute analysis of new U.S. Census Bureau data shows.

As of fiscal 2002, New York's state and local taxes averaged $4,645 for every state resident. That figure was the highest in the country, and some 48 percent above the national average of $3,149 per person.

That adds up to a total additional tax burden of $28.6 billion on New Yorkers, compared to what they would pay if state and local taxes here were on a par with the national average, according to the Public Policy Institute, the research affiliate of The Business Council of New York State.

Using another common measure, state and local taxes in New York averaged $131 for every $1,000 of personal income residents earned. That figure is also the highest in the country, 26 percent above average.

The data do not include the state-level tax increases New York's Legislature imposed in 2003, nor the property-tax increases most counties and school districts imposed over the last two years.

Local taxes in the Empire State are especially far out of line with competing states. As of 2002, New Yorkers paid an average of $2,384 per person in property and other taxes to school districts, municipalities and county governments. That figure was 85 percent above the average for all states.

Besides high taxes, New York's state and local-government leaders have incurred a heavy debt burden on behalf of taxpayers. The Institute's analysis found that state and local debt in New York adds up to $10,306 for every state resident, the second-heaviest debt burden in the nation.

High taxes and heavy debt are driven by high spending levels. The state government, school districts, counties, cities, towns and other governmental units spent an average of $10,376 per capita in 2002. That figure was 46 percent above the national average. New York leads the nation in Medicaid spending and is among the national leaders in spending on education, welfare and other programs.

The Institute analyzed new data posted on the Census Bureau Web site July 15. The Census data, which include detailed financial figures for each state.

The new Census data on state and local government finances also showed that New York's combined state and local taxes on individual income are more than twice the national average, as are corporate income taxes, on a per-capita basis. General sales taxes, per capita, were 11 percent higher in New York than nationally.

State and Local Taxes Per Capita, 2002
Rank State Amt.   Rank State Amt.
1 NEW YORK $4,645   27 New Hampshire $2,825
2 Connecticut 4,373   28 Georgia 2,816
3 New Jersey 4,038   29 Indiana 2,759
4 Massachusetts 3,721   30 North Dakota 2,727
5 Minnesota 3,673   31 Louisiana 2,722
6 Maryland 3,646   32 North Carolina 2,718
7 Wyoming 3,644   33 Texas 2,713
8 Maine 3,507   34 Florida 2,686
9 California 3,440   35 Missouri 2,667
10 Wisconsin 3,421   36 Arizona 2,650
11 Hawaii 3,416   37 Kentucky 2,636
12 Rhode Island 3,392   38 New Mexico 2,634
13 Delaware 3,334   39 Utah 2,599
14 Illinois 3,303   40 West Virginia 2,571
15 Alaska 3,229   41 Oregon 2,558
16 Washington 3,216   42 Oklahoma 2,516
17 Vermont 3,190   43 Idaho 2,451
18 Ohio 3,170   44 South Dakota 2,423
19 Colorado 3,088   45 Arkansas 2,387
20 Nebraska 3,077   46 South Carolina 2,376
21 Pennsylvania 3,052   47 Montana 2,346
22 Michigan 3,051   48 Mississippi 2,275
23 Virginia 3,037   49 Tennessee 2,241
24 Nevada 2,968   50 Alabama 2,170
25 Kansas 2,941   U.S. average $3,149
26 Iowa 2,837   N.Y.S. % above avg. 47.5%
Source: Public Policy Institute calculations from U.S. Census Bureau data

 

State and Local Taxes Per $1,000 Personal Income, 2002
Rank State Amt.   Rank State Amt.
1 NEW YORK $131   27 Connecticut $104
2 Maine 130   28 Alaska 103
3 Wyoming 122   29 Illinois 101
4 Hawaii 121   30 Nevada 101
5 Wisconsin 117   31 Pennsylvania 101
6 Rhode Island 114   32 Washington 101
7 Minnesota 113   33 Indiana 100
8 West Virginia 112   34 Georgia 100
9 New Mexico 111   35 North Carolina 100
10 Louisiana 111   36 Idaho 100
11 Ohio 111   37 Oklahoma 100
12 Vermont 111   38 Montana 98
13 Utah 108   39 Missouri 96
14 Nebraska 108   40 Massachusetts 96
15 Delaware 107   41 South Carolina 96
16 Kentucky 106   42 Texas 95
17 California 106   43 Virginia 95
18 North Dakota 105   44 Florida 94
19 Arizona 104   45 Colorado 92
20 Maryland 104   46 Oregon 91
21 New Jersey 104   47 South Dakota 90
22 Arkansas 104   48 Alabama 88
23 Mississippi 104   49 New Hampshire 85
24 Iowa 104   50 Tennessee 84
25 Michigan 104   U.S. average $104
26 Kansas 104 N.Y.S. % above avg. 26%
Source: Public Policy Institute calculations from U.S. Census Bureau data
Dollar figures are rounded

-30-