If you own property in New York, you may have noticed that your property taxes continue to increase. Property taxes have actually grown at three times the rate of incomes in New York. A Sept. 7 report discusses how homeownership is something that many people aspire to, but it can be a black hole of fees and taxes.
Since 2005, property tax revenue has increased by over 98 percent. Each year, it grows by approximately 6.2 percent. The trouble with this is that household incomes over the same time period only went up around 2 percent each year.
Low-income homeowners have been disproportionately affected by the rise in property taxes. New York City currently faces a lawsuit that claims that property tax assessments are systematically discriminating against minority and lower-income families.
When property values were growing, this helped mitigate the issues caused by growing property taxes. However, those property values are now stagnating. The trouble with property taxes still remains.
Everyone has seen an increase in property taxes, but the relative burdens are much higher for those with lower incomes. The city has been called on to address this issue and consider increasing property tax credits and other research into property tax options. It is hoped that addressing the problem now could help ease the burden on lower-income households in the future.
When you make a real-estate purchase, think carefully about taxes and other obligations. While the value of a home may increase, your taxes could have an increasing impact on your finances in the future depending on the home's location.