Not happy about your tax bills this year? Why are they so much higher? Maybe it has something to do with the fact that 58% of properties in NY are eligible for property tax exemptions.
It’s no secret that NY property taxes are extreme. You expect that if you choose to live here, or dare to open a business here. Or at least you should. It is one of top places to live and investment in property in the world. Many wealthy people can afford it, if they want to (even though it may not be wise or financial savvy to do so). There are a lot of people, needing a lot of public services too, but is there more to it than that? One big issue is that 30-60% of property owners may receive over-inflated property tax bills each year. If they aren’t grieving and appealing their property tax bills they just get more heaped on top of that the following year. Less noise is made about the fact that almost 60% enjoy tax exemptions. That’s despite the fact these property owners include some of the wealthiest funds in the world. Who picks up the tab? People like you! Ironically, while the costs of living in NY just keep going up and up, there is little need to put up with it anymore. You don’t have to live within commuting distance of Wall Street to make great money or trade fast. Family, is a big reason that many have stayed, but as more drift to open businesses, work, and retire in lower tax destinations, this may be less of a motivation to stay, and means far less justification for paying the extortionate costs. The Big Apple and Empire State may still be a big deal, but big money and the best talent is increasingly drifting away. Richard Branson recently announced he is working to build Elon Musk’s Hyperloop in India. India also happens to be home to the world’s most expensive home, and first complete smart city. More immigration to Canada from the US is happening. Even California which has high taxes is now testing paying residents a universal guaranteed minimum income each month for living there. We do need services. We should pay public servants well enough to keep the good ones and keep them housed. We do want to attract businesses and investment in NY. Though maybe that is better done by leveling the playing field and making property taxes more equal. If everyone pays their share, it will be less of a burden on those who could actually use the break. For now, challenge your property taxes each year. If you aren’t, you are just encouraging the system, and volunteering to pick up the tab, so someone else can get even wealthier at your expense.