Albany, NY – July 17, 2008 – (RealEstateRama) — Today, New York’s 62,000 REALTORS call upon their representatives in the state Legislature to return to Albany for the purpose of providing relief to our state’s beleaguered homeowners who are being crushed by high property taxes. We urge them to approve Gov. David Paterson’s school property tax cap proposal as an important first step toward providing New Yorker’s with a decreased tax burden.
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.
The New York State Association of REALTORS strongly supports the portion of Gov. Paterson’s Program Bill #62 that would cap the growth of school property tax levies at 4 percent or 120 percent of the Consumer Price Index (CPI), whichever is less. This tax cap proposal is a step in the right direction toward solving New York’s property tax crisis. New Yorkers clearly agree. A recent Siena College poll found that 69 percent of voters support of the governor’s property tax cap bill – regardless of political affiliation or geographic location.
In addition to the highest property taxes in the nation, home buyers in New York State are also expected to pay the highest closing costs in the nation. Depending on where a homebuyer lives, as many as four separate state and local taxes may be imposed on the recording of a mortgage. Many of these closing costs are fixed and must be paid by low, moderate, and high income homebuyers alike.
The net result is that these combined taxes make homeownership unattainable for many who aspire to achieve the dream of owning a home. New York is competing with states to lure and retain a young and well-educated workforce, and losing the battle due in large part to the state’s regressive tax structure. According to statewide census data released in March 2007, New York was one of only four states that failed to grow in population since 2005, with 46 of New York’s 62 counties experiencing more people moving out during 2005 than moving in for a total one-year loss of 225,766.
This issue has been thoroughly studied by the bi-partisan, blue-ribbon Commission on Property Tax Relief, which also found the need for a school property tax cap, along with other proposals for stemming the tide of ever-rising property taxes.
Now, it is time for Albany lawmakers to enact 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.
The school property tax cap proposal will help make homeownership more attainable and appealing by allowing people to afford to stay in New York State. Offering individuals and families the prospect of meaningful tax relief provides a tangible incentive to purchase a home and grow roots in New York, which will certainly pay lasting dividends.
New York’s REALTORS applaud the governor for his leadership on this issue, and urge our legislators to follow his lead.
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.
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Salvatore I. Prividera Jr.
Director of Communications
and Special Projects
