Hawaii, New York and Massachusetts have highter business cost than California

LATEST NEWS
August 12, 2005

California ranks No. 4 in business cost

Hawaii ranks up there with New York and Massachusetts as the most expensive U.S. states in which to do business, according to the 2005 Milken Institute cost-of-doing-business index, but California is right behind them.

The Aloha State, which also was No. 1 on last year's index, has business costs that are 43 percent higher than the national average.

New York came in second place, with costs that are 30 percent higher, and Massachusetts ranked third, with costs that are 25 percent greater than the United States overall. California was No. 4, with costs that are 24 percent higher.

The index is released annually by the Milken Institute, using wage costs, taxes, electricity costs and real estate costs for industrial and office space as measures.

Hawaii had the highest costs for taxes, electricity and industrial space.

California ranked No. 2 in the nation for electricity cost, No. 3 in cost per square foot of office space, No. 5 in wage per employee, No. 6 in cost of industrial space and No. 13 in overall tax burden, the study reported.

States with the lowest costs of doing business in the nation were: Idaho, Montana, North Dakota and South Dakota.

© 2005 American City Business Journals Inc.