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

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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

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