New York State has the highest local taxes in the nation, says a new study on the state's taxation.

For every 1,000 US dollars of income, New York State residents pay an average of 73 dollars in local taxes, compared to a nationwide average of 43 dollars. With state and local taxes combined, New Yorkers pay an average of 141 dollars for each 1,000 dollars income, while the national average is 112 dollars.

The tax burden is split nearly evenly between New York City and the rest of the state. But city residents pay higher income taxes than the rest of the state, while property taxes are higher upstate than in the city.

The study, released Monday by the Citizens Budget Commission ( CBC), attributes the state's high municipal taxes to soaring Medicaid costs, limited state support for education and higher- than-average salaries and benefits for government workers.

"Local governments across the state are struggling under the weight of these requirements," said CBC president Diana Fortuna.

"It is time for Albany to be more concerned about the burden that it is placing on local taxpayers."

Responding to the report at a press conference, New York City Mayor Michael Bloomberg blamed the city's high local taxes primarily on Medicaid costs and pension benefits.

He said the State Legislature should take control of those programs and determine which benefits could be cut.

Asked to comment on the findings of the study, a New York city resident said he was not surprised.

"It's a very expensive place to live. We have expensive services, we have expensive lifestyles. It's not surprising," said the resident.

Residents of New Jersey and Ohio have the nation's next-highest local taxes, paying 51 and 48 dollars, respectively, per 1,000 dollars of income, the study said.

The study was based on tax figures from the 1999-2000 fiscal year and so did not include this year's income and sales tax hikes.

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