The news headlines are still being dominated by tax news. With all the pressure and disappointment, is moving out of state the best move on the menu? Or are there ways to minimize the pressure and stay on Long Island a little longer?
Higher Property Prices: A Blessing & A Curse
The Long Island real estate market is already sizzling this year. Median home prices in both Nassau and Suffolk County rose around 6% in January over last year. Available home inventory is down even further, falling by double digits in Suffolk, according the the MLS.
This makes it a particularly good time to sell a home on Long Island. Some are restructuring their housing and investments in wake of recent tax changes. Others are just rushing to beat higher interest rates. The big problem is, if you sell and cash out, where are you going to move? You may get multiple bids on your home if you price it well. Yet, you may have to compete with even more buyers to find a new place to live. Those heading out of state to pastures with lower property taxes may be those who benefit most from this activity.
Property Tax Rates & Less Breaks
Many Long Islanders are going to see higher property tax bills again this year. Especially with all of the home sales activity happening. The new Tax Cuts & Jobs Act makes the impact of this even worse, by capping how much of those bills owners can deduct on their income tax returns. Along with other potential tax break losses and caps, many Nassau and Suffolk County residents are really going to feel a pinch in their pocketbooks in the next few months.
Getting Tax Breaks: Too Hard & Too Easy
Military veterans from the cold war period have just been granted an extension of their property tax exemption, which was to expire on March 1st. At least this is true for 8 out of 10 towns in Suffolk, as of publication. Eligible veterans can benefit from a 15% reduction in their tax assessed value, or even more if disabled. However, many may not be happy that it is such a battle to help these veterans, when it seems that big tax breaks are handed out so easily to corporations and developers.
However, some developers and investors are finding that the tax break sweeteners being dangled like carrots in front of them to come to NY, aren’t always as reliable as you’d expect. The Green Acres Mall in Hempstead recently found their tax deal was voted down after the fact, and slated to be rescinded. Some may wonder if it doesn’t make more sense to fix the property tax system, and lower taxes appropriately in order to attract more businesses, investment and jobs, rather than waste so much on these unequal battles. After all, everyone continues to point to these high taxes as one of the biggest roadblocks to keeping talent, capital, and residents.
Where the Breaks are at
You can get a break. You can find a new home and make it more affordable by appealing the property tax assessment, and claiming your rightful deductions. Even if you hope to sell your property, you may make your home more attractive and be able to sell for more, if you slash the tax assessment and annual bill with the help of Property Tax Adjusters, Ltd.