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Ohio is among the nation’s worst states to do business based on its taxes, workforce and living conditions, according to a recent survey of more than 650 CEOs.

Ohio ranked 44th in Chief Executive magazine’s annual ranking of the states, which is up one spot from last year. The state received a grade of “C-“ in taxation and regulation, a “B” in workforce quality, and a “B-“ in living environment.

State tax officials blamed the weak assessment on Ohio’s reputation as a “high tax state,” which it is taking steps to shed.

“Perception has yet to catch up to reality in Ohio,” said John Kohlstrand, spokesman for Ohio Department of Taxation.

Since 2005, the Buckeye State has been working to lower taxes while creating a more attractive tax system for business. Local property taxes on equipment and a state tax on corporation profits have been eliminated and replaced with a new commercial activity tax based on the location of a business’ customers. That means when businesses establish new facilities or hire more workers, “they don’t pay additional CAT,” Kohlstrand said.

Marshall Cooper, CEO of Greenwich, Conn.-based Chief Executive Group, shared four comments from surveyed CEOs with operations in Ohio. Three mentioned a need for an improvement in the tax situation one said “get rid of the CAT.”

But Ohio’s overall grades among the CEOs with business operations in the state were slightly higher than the national rankings. Local CEOs gave Ohio a “C+” in taxes, a “B+” in workforce quality, and a “B+” in living environment, Cooper said.

The state’s most recent rankings in the Chief Executive survey represent a dramatic downgrade among the CEOs, who placed Ohio at No. 20 in 2005. The 24-spot decline was second only to Illinois falling 29 spots in the same period.

Despite its weak ranking in the Chief Executive survey, Ohio is home to 23 Fortune 500 companies, including four based in Columbus: Nationwide, American Electric Power, Limited Brands and Big Lots. At least one company on that list, and one that is not, recently announced plans that should result in more than 1,000 local new hires.

Huntington Bancshares last week said it will add 500 jobs in the next five years and keep its headquarters Downtown for 20 more years. Nationwide earlier this month said it plans to fill 600 job openings in Ohio.

Still, Ohio’s unemployment rate remains above the national rate. The jobless rate in Ohio was 11 percent in March. April figures are due out next week. The national unemployment rate was 9.9 percent in April and 9.7 percent in March, according to federal data.

Texas again finished first in the Chief Executive rankings, followed by North Carolina, Tennessee and Virginia. The worst state was California, with New York, Michigan, New Jersey, Massachusetts, Illinois and Connecticut the others that finished below Ohio, according to the survey of 651 CEOs conducted in late January.

EDITED VERSION

SLUG: OHIO BAD BUSINESS STATE?

SHORT HEADLINE: OHIO AMOUNG WORST BUSINESS STATES, ACCORDING TO SURVEY

LONG HEAD: OHIO RANKES AMOUNG WORST BUSINESS STATES, ACCORDING TO SURVEY

Ohio is among the nation’s worst states to do business based on its taxes, workforce and living conditions, according to a recent survey of more than 650 CEOs.

Ohio ranked 44th in Chief Executive magazine’s annual ranking of the states, which is up one spot from last year. The state received a grade of “C-" in taxation and regulation, a “B” in workforce quality, and a “B-" in living environment.

State tax officials blamed the weak assessment on Ohio’s reputation as a “high tax state,” which it is taking steps to shed.(ACCORDING TO WHOM?)

“Perception has yet to catch up to reality in Ohio,” said John Kohlstrand, spokesman for Ohio Department of Taxation.

Since 2005, the Buckeye State has been working to lower taxes while creating a more attractive tax system for business. Local property taxes on equipment and a state tax on corporation profits have been eliminated and replaced with a new commercial activity tax based on the location of a business’ customers. That means when businesses establish new facilities or hire more workers, “they don’t pay additional CAT,” Kohlstrand said.

(WHAT IS CAT?)