Think your New York property taxes are high enough already? Even bigger property tax issues and bills could be ahead. Here’s what to know, and where you can get some relief…
The New Subway Tax
If you live in New York (or any major city), you already know that living close to a subway station comes with a premium. The rent can cost more, and properties cost more. Despite the fact that the New York subway has one of the worst reputations for being on time, it is now being argued that transport developers and the city should participate in the extra value added to local real estate. This value capture tax would require an assessment before the project, and after. The new subway tax on property owners would be split between the entities. That could certainly hurt many homeowners, investors, and renters, even if they don’t use the subway.
Tax Dollars To Fuel The New Coalition Lawsuit
New York, New Jersey and Connecticut have announced their are forming a coalition to sue the federal government over the new Tax Cuts and Jobs Act bill. While no one in these states is likely happy about seeing their deductions capped, others argue that it has finally levelled the playing field and made taxes more fair across the United States. Via the Washington Post, the principal deputy White House Press Secretary, Raj Shah, and research fellow at the Heritage Foundation’s Institute for Economic Freedom, Rachel Greszler pose that these coalition governors should be saving these funds to take care of their residents, and be spending their time and energy on working to reduce the higher tax burden they have put on their states compared to other low cost states like Texas, Tennessee and Florida.
Back Taxes On Homes for Sale
As more foreclosure properties work through the system this year, and many are flipped, home buyers in New York are finding they can be put on the hook for back taxes. Many sellers, especially investors and banks are trying to pressure buyers to pay off liens, and years of past due property taxes and interest, as well as other closing costs typically paid by the seller. In some extreme cases these costs may well exceed the purchase price of the home. Their lack of payment has also contributed to a lot of blight in local communities, and an unfair tax burden on those who have been paying their taxes each year. Know that this can be negotiated. Everything is negotiable in a real estate contract. Don’t be duped or forced into paying for costs the seller has just tried to skimp on. You may also have an attorney negotiate with the tax authority on your behalf and get penalties stripped away, and incorrect bills corrected. It does seem a little ironic that some are making so much noise about the unfairness of taxes, while consistently raising them, or turning a blind eye to current equality and failures in the system. Do stand up and voice your opinion when you have the chance. Also be sure to take the practical actions you can to reduce your own property tax bills, and avoid being a victim.