New York ranks 49th for business tax climate, report says

New York State has the second worst tax climate for businesses in the country -- for the second year in a row -- a nonpartisan think tank said Tuesday.

The Tax Foundation, in an annual review of tax policy, ranked New York 49th among the 50 states because of high taxes on personal income, property and purchases.

New Jersey had the nation's worst tax climate, placing 50th. California was 48th, and Minnesota and Vermont rounded out the bottom five.

Wyoming, which doesn't tax personal and corporate income, continued to have the best climate, the Washington-based foundation said.

Foundation officials, who have worked with Gov. Andrew M. Cuomo on tax issues, praised him and the State Legislature for last year enacting legislation that would lower the corporate tax rate over time from 7.1 percent to 6.5 percent. This year, they extended and improved a provision that allows businesses to write off previous operating losses.

The changes, the foundation said, improved New York's ranking in corporate tax structure by nine places to 12th in the country. However, until the changes are fully implemented they aren't likely to help the Empire State's placement on the overall tax climate index.

The index, in its 12th year, is released each fall and projects the tax burden on companies in the coming year.

New York also placed 49th last year, an improvement over the indexes put out in October 2013 and October 2012, when it was dead last. But those indexes were revised later to move New York up to 49th.

The Business Council of New York State, which represents companies across the state, said Tuesday the index should spur Albany to make further changes to the tax code.

"Our overall ranking of 49 only adds to the impression that our state is anything but open for business," council president Heather C. Briccetti said. "Policymakers should take a long, hard look at this report as they consider imposing new, costly mandates on business, including a $15 minimum wage."

Cuomo spokesman Richard Azzopardi said the governor understands the implications of being known as a high-tax state and has taken steps to reverse that perception.

"As Governor Cuomo has repeatedly said, New York has no future as the high-tax capital of the world," Azzopardi said. "That's why he's instituted the lowest middle-class taxes since 1953, the lowest business tax rate since 1968, the lowest manufacturer tax rate since 1917, a property tax cap, a property tax freeze, and -- this year -- a property tax cut."