New York property taxes aren’t getting any cheaper. Is Airbnb the solution for finding a financial lifeline amongst the mounting bills?
Costly Attempts to Temporarily Curb NY Taxes
Both businesses and residents are more than aware that high taxes aren’t healthy for NY. The Press & Sun-Bulletin notes at least five current attempts to ‘reduce’ property taxes in New York.
- The STAR Rebate
- Family Tax Relief Credit
- Property Tax Freeze
- Tax rebate checks
- Property tax cap
However, the publication also points out that what no one is talking about is the fact that these programs cost the state, and effectively tax payers billions of dollars each year. In many cases they just temporarily return some of the extra money collected, or may actually add to the net burden over time.
Should New Yorkers Airbnb it?
Airbnb recently hit the 1 million rental host milestone It’s biggest market is New York where over 25k units are up for grabs each night. A couple hundred bucks extra per night for renting out a spare room, or more for an entire suite can really go a long way towards helping to cover property taxes. Many are finding it is the only way they can afford to buy and hold onto a property in NY. Just renting out a suite on the weekends for $400 could bring in a gross extra income of $20,800 a year. That could pay your property tax bill and give you some spending money.
So what’s the downside?
The Consequences of Using Airbnb
An investigative report by PBS in August 2015 reveals NY is cracking down on widespread illegal rentals on Airbnb. And ensuring you are staying within the law is just one of the hazards for property owners.
Renting out your property, or a part of it via Airbnb can also potentially trigger multiple taxes. This can include more income taxes, and lodging taxes.
In the longer term many are concerned about Airbnb rentals resulting in heavy property damage to buildings, and degrading neighborhoods and property values.
Finding Effective, Legal Relief from Property Tax Bills
Before attempting to navigate the Airbnb minefield, property owners need to know that often their tax bills are so high, not just because of tax rates, but incorrect bills. Around half of all bills attempt to overcharge property owners each year.