New Double Digit Property Tax Increases Hit New York

Real Estate Board of New York calls for equality in property tax reform as bills spike.

Property tax bills just keep heading up. The complexity of taxes often appears to be used to victimize property owners, and to mask inequality in the system. So, just how high are your taxes going to be this year? What’s being done about it? How do you avoid being a victim?

Double Digit Tax Hikes in NY

The new budget for Troy, NY is set to spike local property taxes by 28.2%. That’s despite the proposal to cut back services and close 2 city pools. Still, that’s a lot better than living in Victor, where property tax rates are set to double in 2017. Low gas prices at the pump and stagnant sales taxes are being blamed for the need to bring in more revenues from homeowners. However, in January 2017 Governor Cuomo blasted municipalities, blaming them for not wanting to cut costs.

Tax Rates vs. Bills

Business owners and commercial property owners in NYC are also quickly waking up to the fact that there is a big difference between tax rates and tax bills. The mayor boasts of not having raised tax rates. However, during his time in office The Wall Street Journal reports commercial property tax bills have “jumped 29.3%.” This is blamed on rising tax assessments. Whatever the reason is can be a double punch for small business owners who also own homes or apartments. They are bringing in less net income from their work, and paying out more at home. Often those are double digit losses on each end.

Tackling Inequality in the Property Tax System

Politico reports that the Real Estate Board of New York (REBNY) is taking on property tax reform via its lobbying efforts. The organization says property taxes account for almost half of all taxes collected by NYC last year. That dollar amount has risen almost 25% in the last 3 years to over $20B. That only includes commercial properties, and not all the revenues from 1-3 family homes, condos, and co-ops. REBNY expects this dollar amount to surge another almost 30% within 3 years.

Real estate lobby groups are powerful, but even they have so far failed to bring real relief and fairness to property tax bills arriving in the mailboxes of New Yorkers throughout the state. This is likely to be a big year for tax changes. Yet, without a complete overhaul of the system and its operators homeowners are left with no choice but to take action to protect themselves. One of these essential moves all should be making each year is to challenge and appeal their property tax bills. Contact Property Tax Adjusters, Ltd. today to make sure you aren’t being overcharged, and to get help in reducing your tax burden.

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