Albany, NY – December 1, 2008 – (RealEstateRama) – New York State faces unprecedented fiscal challenges, which require unprecedented actions. The gimmicks and other temporary, non-structural budget fixes used in the past are not an option. The state Commission on Property Tax Relief’s report offers concrete proposals that recognize one simple fact, New York’s state and local governments don’t tax too little, they simply spend too much.
Today, New York’s 62,000 REALTORS call upon all their representatives in state government to strongly consider the carefully weighed proposals put forth in the bi-partisan report accepted today by Gov. David Paterson. We simply cannot allow the state’s dire financial straits to be passed directly on to New York’s homeowners, who already bear an unreasonable property 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 – 78 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.
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.
This is exactly what the Empire State does not need during this economic recession. Most economists agree that the housing sector will play a key role in revitalizing both our state and national economies. New York needs to be positioned to encourage affordable homeownership, which will benefit its current residents and promote business investment.
We urge 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.
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 Marketing
