Long Island continues to offer big businesses tax breaks, while raiding the finances of local homeowners to pay for them. That means that despite the fact that the recent sprint in home sales may have come to an end, LI property owners could face much bigger property tax bills this year, unless they know how and where to find help.
Big Tax Breaks For Big Business
Big tax breaks for big businesses in NY are nothing new. They have sometimes been highly controversial, like Amazon’s. Though there are often many more of these deals made and given then the public and local taxpayers are aware of.
One of the most recent on Long Island is a deal in Suffolk County to give a sportswear manufacturer lucrative tax breaks to buy and renovate a $34M building in Bay Shore. This is despite the company already owning two local properties.
Creating and attracting jobs and investment is great. It is necessary for destinations to survive. Of course, there are a variety of proven ways to do this. Like having zero state income taxes, doing away with corporate income taxes, and low or no property taxes. As well as ensuring access to affordable housing.
Of course, NY offers none of these things. Yet, giving these breaks to those that don’t need them may not be believed to be the answer by everyone either. In fact, many businesses which were given these sweetheart deals in the past just took the money and left.
If what we really want is job creation then it is no secret that small businesses and entrepreneurship is what is really responsible for the most jobs, and also today the cleanest and greenest jobs. Yet, small token efforts made in this direction for PR purposes like Startup NY have seen those breaks stripped from them just at the worst moments. Like during COVID.
These breaks are also forcing up local property taxes on the most at risk small businesses and homeowners. Right at a moment when they are already reeling from mandates and insane levels of inflation.
Should Your Property Taxes Be Going Down?
It is issues like the above which cause more tax hikes and to spread the tax burden unevenly.
Your property taxes are made up of both tax rates and tax assessed values. Recently a lot of noise has been made about fast rising home prices and competitive home sales markets in much of the country. NYC of course has mostly seen things going in the opposite direction.
The Long Island Business Network (LIBN) now also reports that Long Island pending home sales have slid by over 22% since October. When homes under contract fall, then closed home sales decline, and property prices and values drop.
The expected trajectory at which this is anticipated to happen at has scared even giants like Zillow so much they are quitting the business. Zillow, which built an almost $20B market cap company on estimating home values just announced it can no longer forecast house prices, and will lay off around 25% of its staff.
Without Zillow, how much do you even know how much your home is worth, without paying for an expensive appraisal? Without that information, how do you keep your tax authority honest when they are assessing your home value and sending you bills?
Summary
An environment which encourages employment, innovation and job creation is vital. Yet, more breaks for bigger businesses, when they often run with the money doesn’t seem to be the answer. Especially at the cost of small businesses and local homeowners. Now with even less tools and clarity on home values as they may plummet, taxpayers are further in the dark about how much they are overpaying each year.
That’s why Property Tax Adjusters Ltd. is here to help. Talk to one of our experts today about how much you are being over-billed and how to file an appeal and save thousands on your property tax bill instead.