New York Real Estate Tax Increases- Will It Kill Our Market?

Real Estate Agent with Coldwell Banker Residential Properties

The government knows that improving the real estate market is a big step toward improving the economy. As part of their action plan, they had implemented the First-time Homebuyer Tax Credit, which just expired at the end of April.

National statistics released today by the National Association of Realtors reports that existing home sales dipped 2.2% last month to a seasonally adjusted annual rate of 5.66 million units, down from the upwardly revised rate of 5.79 million in April. Sales year-over-year were up 19.2%.

Despite a gloomy outlook on Real Estate, the state of New York is seriously considering raising real estate taxes. In addition, they are looking to increase the Mortgage Recording Tax by a half percent.

Residents, buyers and realtors alike are outraged. How is the real estate market supposed to improve if the state increases taxes?

By the way, for those of you who might not be aware, New York State has taxes which are 35% higher than the national average.

In addition, Westchester County has the highest property tax rates in the nation.

The New York State Association of Realtors is looking at this as a serious threat to the industry and is waging a war against it. They have begun to take out full-page advertisements in local newspapers warning residents and readers about this move.

New York State is facing an unprecedented $9.5 billion shortfall for the fiscal year, which began April 1. There have been several proposals floated in Albany to increase the mortgage recording tax to help address this budget crisis. NYSAR and its members have been actively opposing these proposed tax increases from the very beginning, but the fight is not over.

NYSAR is taking our message to the mainstream media in order to make it very clear to New York lawmakers that REALTORS and voters remain opposed to any further real estate related tax burdens. New York’s budget deficit is not the result of too few taxes. But sellers, buyers and realtors will pay the price for bad spending.

If you have not already done so, click here to access the TAKE ACTION site, and send an email to Governor Patterson and the state legislators to let them know that increasing the Mortgage Recording Tax is not the way to solve New York’s fiscal crisis.

NYSAR Tax Increase Ad

Comments (2)

J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY

Rose, I don't think high taxes will kill the market but they sure stink anyway. 

Jun 26, 2010 01:58 PM
Rose Marinaccio
Coldwell Banker Residential Properties - Scarsdale, NY

No doubt about it, they definitely stink.

I don't know about you, but some of my buyers can afford to buy, but get scared by the yearly taxes.

Jun 27, 2010 05:14 AM