Do you care how high your property taxes are?
Are property tax rates really that important? Or are constant hikes, and constant incorrect billing a result of home buyers and owners not caring enough?
Each year almost half of all property tax bills sent out in NY are over-inflated and incorrect. Whether it is via tax rate hikes, or higher assessments, property tax bills just keep going up too. At least for those who aren’t appealing their property taxes, refuse to be taken advantage of, and are driving them down each year.
In the past property taxes were often sold as a tax break to homebuyers. That changes big time this year, with the new tax bill which severely limits tax deductions for those in high cost states like NY.
Bloomberg News reports that some homeowners and buyers who may see their property tax bills double this year when moving up to larger spaces, and who will only be able to claim a fraction of what they pay in taxes as a deduction are just putting it down to “the cost of living.” Yet, the data shows it may already be having a negative impact on NY home sales.
So, high property taxes may be okay for some. If you are making a million dollars a year, then taking a an extra $20k hit on property taxes may not be a big deal. Though for many others it may be about simply not paying enough attention. Many forget to calculate in property taxes when buying a home. They are just focused on the mortgage payment portion. They also often grossly underestimate how fast and high those taxes can go up over a couple of years. Even more so when tax deductions are simultaneously stripped away.
Property taxes can certainly impact costs, appeal of certain properties and areas for those educated about these expenses, housing affordability, and overall finances.
How much do you care? Make sure others you know and care about are smart about property taxes. Remember you can and should challenge yours and pay less.