New York is the second-most-expensive state in which to do business because of the astronomical costs of energy, wages, taxes and office rents, a study by an economic think tank has found.
The really bad news for New York is that the state has held the second place ranking for more than four years, according to the survey conducted by the California-based Milken Institute.
“It’s unfortunate news and unfortunately it’s familiar news. There are many different studies and analyses that reach a strikingly similar conclusion,” said Matthew Maguire, of the Public Policy Institute of New York State.
“New York state is uncompetitive and we need help from Albany.”
New York – which trails only Hawaii – led the nation as the most expensive place to rent office space, with premium offices renting for more than $100 per square foot in the past year, an added expense to business, but an indication that the local economy remained strong.
It ranked second in wages, with workers’ here earning an average of $53,865. Connecticut was first with average wages of $54,007.
As for state taxes, New York was ranked 26th in the nation in the Milken survey. But that calculation did not include corporate tax, property tax, sales tax or unemployment insurance tax.
Another study, conducted recently by the Tax Foundation, ranked New York 48th worst in the nation when all taxes were included in the comparison.
New York ranked eighth in electricity costs. That translates into an extra $6.6 billion paid for electricity last year, compared to what the bill would be if utility rates were the national average of $7.49 per kilowatt hour. New York’s average was $11.86.
Maguire, whose organization published the institute’s report, said the state doesn’t have to routinely top the list for the costliest place to do business.
“We know what needs to be done,” said Maguire, who noted that just this year Albany lawmakers helped reduce the state’s cost of workers compensation by making “real, meaningful reform.”
The Public Policy Institute has estimated that the actual cost of doing business in the state is $35 billion more than if the state matched the national average.
The bulk of that, about $24 billion, comes from higher taxes here.
New Jersey and Connecticut were close behind New York for business costs. Connecticut was ranked the fifth most expensive, and New Jersey was seventh.
Alaska was ranked third and Massachusetts fourth. California was sixth. The least expensive state in which to do business was South Dakota.