New Jersey ranks among the worst states in the nation for high property taxes, according to the Tax Foundation, which recently took a deeper dive into this component of its overall 2021 State Business Climate Index rankings.
For the third year in a row, New Jersey ranked No. 46 in the property tax category, an area that is particularly important to the business community, the Tax Foundation said.
“Businesses own a significant amount of real property, and tax rates on commercial property are often higher than the rates on comparable residential property,” the foundation said in an article published yesterday. “Across the nation, property taxes impose one of the most substantial state and local tax burdens most businesses face.”
States are in a better position to attract business investment when they maintain competitive real property tax rates and avoid harmful taxes on tangible personal property, intangible property, wealth, and asset transfers, the foundation said.
“This year, the states with the best scores on the property tax component are New Mexico, Indiana, Idaho, Delaware, Nevada, and Ohio,” the foundation said. “States with the worst scores on this component are Connecticut, Vermont, Illinois, New Hampshire, New Jersey, and New York, plus the District of Columbia.”
The property tax component accounted for 14.8 percent of each state’s overall score in the foundation’s 2021 Business Climate Index, which also considered corporate taxes, individual taxes, sales taxes, and unemployment insurance taxes. New Jersey was dead last at No. 50 in the overall rankings, which were released in October.
Go here to read the foundation’s deeper dive on the property tax component of the rankings.