New York’s broken property tax system has now helped the state earn the ranking of being one of the worst in the country for businesses.
Taxes, Taxes, Taxes
The past couple of years have only seen more and more taxes piled onto New Yorkers. From taking away tax breaks and deductions, to implementing a slew of new taxes, and rising tax rates, we’re now paying a lot more than we used to. It’s even worse if you own property in Nassau County, where new tax assessments are going to multiply that even more.
The tax system does seem to be working for a few. Those controlling the money. School districts which have amassed well over a billion dollars in reserves, and real estate developers. We may have dodged the Amazon bullet, but developers continue to get sweet deals for making money. In South Setauket one golf club is seeking a three year freeze on property taxes so that it can develop new units. While we need new housing, it is hard to see the real benefit of giving developers six, seven and eight figure breaks or more, instead of just reducing taxes to make housing more affordable for everyone. Especially those finding it hardest to keep up. That especially includes local small business owners who are getting hit at their business property and home.
Bad for Business
A new study by WalletHub puts NY in the bottom eight states in America for businesses. That’s due to the high costs for business owners and startups. Much of which comes down to the property taxes.
New York small businesses make up 99.8% of all businesses in the state. They also employ over 50% of the private workforce. Yet, they are closing at an alarming rate. Mostly due to taxes. Many of which are passed on through rents. When over 20% of storefronts are vacant even in Manhattan, you know there is a problem. When a coffee shop owner is paying almost $4,000 a month for a 130 square foot micro store, they’ve got to sell a whole lot of coffee just to pay the taxes. Never mind the rent and other expenses, or having anything left over to employ people.
Fortunately, the internet lets us work from anywhere today, so a lack of local employers may not be as bad as it used to be. Though between all the taxes on workers and internet businesses selling in NY, it certainly makes it less attractive to be here.
Appeal, Appeal, Appeal
Getting any meaningful change enacted can feel futile on a legislative level. Though we can all appeal our own property tax bills. If you need to lower your business and housing costs, appeal, appeal, appeal.