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New Jersey's reputation for heavy taxes was burnished Tuesday when it was named the worst state in two annual surveys by the nonprofit, nonpartisan Tax Foundation.

The foundation's annual State Business Tax Climate Index found the state's tax structure was the least hospitable to economic growth, and its survey of census data on property taxes found New Jersey's were tops in the nation.

"I hope state leaders use this study and don't spend a lot of their time justifying the system. The study screams that our tax system is broken," said Joseph Kelly, president of the Greater Atlantic City Chamber.

Ken Calemmo, the chamber's chairman, said business, leaders and clients are leaving the state because of its tax climate.

"If we don't reverse this trend, we'll lose a lot of good businesses and a lot of good people," Calemmo said.

Property taxes were one factor in the Business Tax Climate survey, but the foundation said the state's problem is that it has all of the major taxes and none of them is considered compet-

itive.

New Jersey's corporate income tax is the nation's 10th worst, its personal income tax is fourth worst and its general sales tax is 13th worst. Only in unemployment-insurance costs does the state manage to fall in the middle rankings at 25th, and that is the index factor that matters least to corporations, according to the foundation.

"The best states on the list are most often able to do without a major tax," Kail Padgitt, who authored this year's study, said Tuesday. "The lower ranking states have all of the major taxes and the rates tend to be incredibly high."

The state rated the most hospitable to business was South Dakota, and neighboring Delaware ranked eighth in the nation despite having the second worst corporate income tax.

"Staying competitive, especially in this economy, is critical," Kelly said. "Adjustments have to be made, and maybe this study will serve as a stimulus to drive home the point we're not competitive and we're losing business."

Data released Tuesday by the Census Bureau showed New Jersey homeowners still pay the most in property taxes, according to the Tax Foundation. That brought the state's worst-in-nation status in both tax studies to four consecutive years.

The median real estate tax bill in 2008 in New Jersey was $6,320, up from $6,082 the year before. The national median was $1,897.

The state also remained No. 1 in property tax burden, with such taxes consuming 7 percent of homeowners' incomes. In second-place Vermont, property taxes claimed 5 percent of income.

Census figures showed median N.J. real estate taxes were $5,023 in 2004 and that was 6 percent of income.

The Northeast continued to lead the nation in real estate taxes, with Connecticut, New Hampshire, New York, Rhode Island and Massachusetts following New Jersey on the 2008 list.

Six New Jersey counties were among the Top 10 nationwide for property taxes: Hunterdon County (3), Bergen County (4), Essex County (6), Somerset County (7), Morris County (8) and Passaic County (9). The rest were counties in New York.

The Tax Foundation compiled the data from the updated 2008 American Community Survey.

E-mail Kevin Post:

KPost@pressofac.com

6 comments:

• RandomX856 (214) posts 5:39 pm

  New Jersey is a tiny state. And with 8.4 million people, how is it that our largest city only has 250,000 people? THIS IS THE PROBLEM. Every 2 miles, a new town starts... which means a new school district is there... in which citizens have to spend a fortune paying for. Thats the reason why our taxes are so high. We need to force many of these small communities to merge, whether they like it or not!

• BernieSchwartz (646) posts 2:46 pm

  I never knew! Hightaxes? In NJ? Duh

• BernieSchwartz (646) posts 2:46 pm

  I never knew! Hightaxes? In NJ? Duh

• susansmith (142) posts 1:21 pm

  How can anyone start a business in New Jersey? Jon Corzine has ruined the New Jersey economy in South Jersey and the casino industry. He CLOSED the casinos during the JULY 4TH weekend. He is terrible for New Jersey, especially South Jersey!!!!

• todfiat (0) posts 12:35 pm

  "Go west, young man."

• beHonest (47) posts 9:18 am

  Do not forget about all the corruption and union shake downs taxs are the least of Jersey's problems

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