Thinking you’ve finally had enough of our high property taxes? Trying to leave just got a lot more expensive.
New Yorkers spend more in annual property taxes than the average person in the world makes all year long. In fact, according to the Guardian, it could take three centuries for the lowest paid 10% to afford to live in Nassau County for a year.
It’s Broken
Unless the play is to price everyone but the world’s super rich from living in NY, things are pretty broken.
Every claim of making things better when it comes to property taxes somehow just seems to end up piling more taxes on us.
School districts say they are bankrupt, ywt have amassed billions of dollars in rainy day savings. Property taxes keep going up faster than the government is spending it (the budget didn’t go up by 50% last year). Incomes and jobs aren’t growing as fast as taxes.
Leaving Isn’t That Easy
So, when you’re tired of the taxes you can just sell your home in NY, pack up and leave right?
Maybe.
It’s not an easy choice to leave. It just got a lot harder thanks to even more taxes being levied on those who decide to head for greener pastures with lower taxes. It’s going to be anything but cheap, especially for those with more expensive homes and condos.
In this blog post, we recently covered how some may have to make expensive improvements, like removing swimming pools in order to sell their homes.
If the property taxes on your home are set to escalate over the next few years, that will leave fewer buyers who can qualify to finance it, and who will want it.
There is also the issue of the state tracking down the tens of thousands of those leaving and hitting them with big income tax bills. On average they are well into the six figures.
As of July 1st, 2019 two new real estate tax increases will also make it more expensive to sell your home in NY.
Transfer taxes on commercial properties sold for $2M or more and residential property sold for $3M or more just went up by 60% to 0.65% of the sales price.
Residential properties sold for $1M or more are also subject to the new ‘mansion’ tax. This will take another 1% to 3.9% of the sales price out of your pocket.
At the top, home sellers will pay almost an additional 5% of their home’s value to the state for the luxury of selling their homes.
Not so excited about selling now? Or maybe you need to get your property taxes down to get a buyer? Get in touch with Property Tax Adjusters, Ltd. today, grieve your property taxes, and save.