The Tax Foundation named New York’s corporate tax system as the fourth best in the country Tuesday, up 21 spots following reforms in the 2014-15 state budget.
The conservative nonprofit group, based in Washington D.C., boosted New York’s corporate tax ranking after labeling the state as having the worst business tax climate in the country.
The rise in New York’s corporate tax system ranking brings the state’s overall ranking up slightly to 48th, ahead of New Jersey and California.
Gov. Andrew Cuomo touted the improvement as proof that “New York is open for business” and pointed to tax cuts in the budget as a way for the state to reclaim “its reputation as a great place to do business.”
The budget reduces the corporate tax rate from 7.1 percent to 6.5 percent. It also includes $1.5 billion in property tax relief and drops the tax rate on income for manufacturers from 5.9 percent to zero.
“This year’s budget builds on positive reforms included in our three prior budgets, which have greatly improved the business and tax climate in the state and changed the trajectory of New York’s economic standing,” Cuomo said in a statement. “This dramatic improvement…serves as further proof that after decades of decline, New York is reclaiming its reputation as a great place to do business.”