Albany, NY – Aug. 4, 2008 – (RealEstateRama) — Today, New York’s 62,000 REALTORS commend President George W. Bush and Congress for the creation and enactment of the housing stimulus legislation that we believe will assist New Yorkers hoping to buy and sell a home. The REALTOR organization has been an advocate for these changes for many years. We applaud the bipartisan effort of Congress to present this comprehensive package to the president, and the president for his quick response in signing the bill into law.
The highlight of the legislation is a tax deduction for first-time homebuyers that creates a real incentive for those who have been considering a purchase, but for any number of reasons have decided to wait. Our housing market, while posting solid sales totals, will be boosted by this legislation, allowing housing to resume its role as a leading economic driver in our state.
The new law will also provide assistance for those families in our state trying to avoid foreclosure by providing them with access to refinancing that is both safer and more affordable.
The much needed reform of Fannie Mae and Freddie Mac, improved oversight of both agencies, FHA modernization, permanent increases in conforming and FHA loan limits along with a temporary tax credit for home buyers will ultimately provide a boost for our economy as these measures pave the way for home buyers and sellers to enter the market.
These meaningful changes on the federal level will certainly assist New York families with reaching their dream of homeownership, and the benefit will be even greater should it be coupled with meaningful property tax relief in New York State.
New York’s REALTORS continue their call for the passage of Gov. David Paterson’s school property tax cap proposal. The preliminary report from the New York State Commission on Property Tax Relief found that New York State’s local taxes are the highest in America – 79 percent above the national average. It also found: property tax levies in the Empire State are rising at more than twice the rate of inflation and salary growth; outside of New York City, 62 percent of property taxes are school taxes; and in terms of tax rate, nine of the 10 highest counties in the nation are in upstate New York.
Capping the growth of school property tax levies at 4 percent or 120 percent of the Consumer Price Index (CPI), whichever is less, remains vital to ensuring that New Yorkers can afford to purchase and then remain in their homes.
Now, it is time for Albany lawmakers to extend the benefits of the new federal legislation by enacting structural reforms to the tax system that will foster tax savings to property owners. Every step the state takes toward lower homeownership taxes is a step toward increasing the state’s quality of life and economic vitality.
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Editor’s Note: The New York State Association of REALTORS is a not-for-profit trade organization representing more than 62,000 of New York state’s real estate professionals. The term REALTOR is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS. These REALTORS are also members of the New York State Association of REALTORS as well as their local board or association of REALTORS.
