What will the impact of the second wave of the virus on NY and its notoriously high property taxes?
The latest news is that a new surge in the virus is requiring a new round of lockdowns and closures. Some cities are even already banning events through 2021 as a result, and Japan has reported a third wave is on its way behind this one. What impact is this having on NY real estate and could it have on our already high property taxes?
Pay Raises For Politicians & Government Workers
Despite many lost jobs and the idea being floated that those able to work at home should be subject to new extra taxes for the privilege of having a job, local governments are giving themselves pay raises. Even Governor Cuomo is giving himself a pay raise despite a $63B budget shortfall. All of these raises are going to have to be covered by a rise in taxes.
New School Closures
New school closures have already begun, despite much doubt that they should have been reopened anyway. The elimination of brick and mortar schools should bring massive relief to local homeowners whose property taxes are mostly made up of school district taxes.
Escaping NYC
Hundreds of thousands of households are leaving NYC. Even more are abandoning dense urban areas in other high tax states and cities, like San Francisco.
New Yorkers are reportedly fleeing to Long Island and the Hamptons. Some are moving into their summer houses. Others are buying whatever they can, while they can. This is pushing up property prices to new highs. Which in turn means higher property tax bills for their neighbors.
So many homes are being abandoned, even on Long Island, that Suffolk County has set up a new Zombie Homes Task Force. When local government has to step in to bulldoze abandoned homes, or even just secure them and maintain them, that extra cost and the unpaid tax bill has to be made up from other property owners across the county.
For many it may be too late to leave NY as other states block their borders to travel. Others just can’t afford the huge state income tax bills that NY has become notorious for pursuing exiting residents for.
To be able to afford to stay, that leaves most the urgent need to dispute their annual property tax bills, and get them reduced. Property Tax Adjusters, Ltd. can help you with that.