Long Island property taxes are infamously high already. The could be going even higher due to a variety of factors.
Aside from general inflation and new tax assessments being calculated, there are several new developments which could hike Long Island property taxes even further. Here’s what you need to know if you own real estate in Suffolk or Nassau County, and what you can do.
12% Tax Hike Coming to Long Beach
A budget shortfall in Long Beach has resulted in a proposal to hike local property taxes by 12%. What’s being called a financial ‘crisis’ in which the city says it could run out of money and have to start laying off employees could mean many are getting hit with at least another $400 in property taxes. Some could pay far more.
Lending & Investment Laws Relaxed
In May 2018 the Federal Reserve launched a new proposal to break down the Volcker Rule. Doing so would enables banks to begin trading for themselves again and give more banks access to hedge fund and private equity fund investments. This would permit more speculative trading and less compliance work. Most notably for Long Islanders, that could trickle down to creating more access to easier to get mortgage loans. Easier financing could extend the current bull run in housing and fuel higher property prices. Higher prices and more buying activity typically trigger more expensive property taxes.
More Real Estate Development
A Suffolk County economic development committee voted 3-0 to approve a deal with a Chicago developer to build a new $1.1B sports and convention complex on 40 acres in Ronkonkoma. While new development can help create jobs, economic growth and stability, it can also result in higher property taxes. Public projects and public/private partnerships cost taxpayers a lot of money. Once complete they also tend to drive up local property prices, despite adding more inventory to the market. More services are great, providing they aren’t so expensive they cause you to have to move away from them.
Summary
Despite reported economic strength it appears that budgeting issues could still result in higher property taxes on Long Island. More flexible capital and development could mean even more building and higher property prices. In turn, that could lead to higher tax assessments and property tax bills. Especially if Long Islanders are not only funding big projects, but developers are given big tax breaks too. Be sure to stay on top of your individual assessments and bills, and challenge them at every opportunity.