ALBANY 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. 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.
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.
US Census Bureau data State and Local Taxes Per Capita 1998 Rank State Amt. Rank State Amt. 1 Connecticut $4,425 27 Iowa $2,606 2 NEW YORK $4,318 28 North Carolina 2,557 3 New Jersey 3,698 29 Georgia 2,552 4 Massachusetts 3,531 30 North Dakota 2,549 5 Minnesota 3,490 31 Florida 2,545 6 Hawaii 3,293 32 Indiana 2,500 7 Alaska 3,279 33 Oregon 2,479 8 Maine 3,225 34 Utah 2,459 9 Delaware 3,218 35 Missouri 2,449 10 Wisconsin 3,186 36 New Hampshire 2,416 11 Maryland 3,126 37 Kentucky 2,377 12 Rhode Island 3,117 38 Arizona 2,371 13 Washington 3,038 39 Texas 2,344 14 California 3,022 40 Idaho 2,334 15 Illinois 2,959 41 Louisiana 2,303 16 Vermont 2,911 42 Montana 2,291 17 Wyoming 2,901 43 Oklahoma 2,240 18 Michigan 2,874 44 South Carolina 2,187 19 Kansas 2,805 45 West Virginia 2,183 20 Pennsylvania 2,802 46 South Dakota 2,158 21 Colorado 2,763 47 Arkansas 2,143 22 Nebraska 2,751 48 Tennessee 2,079 23 Ohio 2,750 49 Mississippi 2,057 24 Nevada 2,727 50 Alabama 1,916 25 Virginia 2,675 US average $2,863 26 New Mexico 2,637 N.Y.S. % Above avg. 50.8% Source: Public Policy Institute calculations from
US Census Bureau data
State and Local Taxes Per $1,000 Personal Income 1998 Rank State Amt. Rank State Amt. 1 Maine $144 27 Mississippi $110 2 NEW YORK $142 28 Ohio 110 3 New Mexico 131 29 Louisiana 109 4 Wisconsin 129 30 Maryland 108 5 Minnesota 128 31 Arizona 107 6 Hawaii 126 32 Arkansas 107 7 Connecticut 125 33 North Carolina 107 8 Vermont 125 34 Oklahoma 107 9 Alaska 122 35 Pennsylvania 107 10 North Dakota 122 36 Georgia 106 11 Wyoming 122 37 Indiana 106 12 Delaware 119 38 Illinois 105 13 Utah 118 39 South Carolina 103 14 Rhode Island 117 40 Missouri 102 15 Kansas 116 41 Colorado 101 16 California 115 42 Nevada 101 17 New Jersey 115 43 Oregon 101 18 Washington 115 44 Virginia 101 19 Idaho 114 45 Florida 100 20 Montana 114 46 Texas 99 21 Kentucky 113 47 South Dakota 98 22 Massachusetts 113 48 Alabama 91 23 Michigan 113 49 Tennessee 90 24 Nebraska 112 50 New Hampshire 88 25 West Virginia 112 US average $112 26 Iowa 110 N.Y.S. % Above avg. 26.8% Source: Public Policy Institute calculations from
US Census Bureau data
Following is a list of tables compiled by the Public Policy Institute showing other key tax-comparison data.
State
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 2000