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Health & Fitness

Understanding That The "Cap" Doesn't Cap Your Taxes

Recently, many people in the community seemed rather surprised, as well as upset, when they discovered that their real estate taxes were scheduled to increase substantially again this year, despite the fact that there is a supposed Cap in the State of New York. Unfortunately, the cap only caps the budget, but does not cap the tax implication for you.

According to statistics I have read, the average increase for homeowners for their School taxes is in excess of 6% (after averaging double digits last year), although many seemed to be under the misconception that only a 2% increase was passed this past spring. While in fact the budget did increase by about 2%, many other factors create additional tax burden to many, including:

  • The change in the way real estate taxes are now calculated on commercial properties, because it was considered onerous and unfair for local business properties to be taxed at such a considerably higher rate
  • Assessment review- When your neighbor gets a lower reassessment after challenging his tax, those that did not challenge see an increase
  • State and Federal mandates, that are often unfunded, impact school taxes
  • Labor contracts, etc., are fixed and increase regardless of the rest of the budget
  • Any reduction in the subsidies received from the state, county, municipalities and/ or federal government, are made up for by additional tax burden
Many have said that these taxes are taxing people out of our area, and in some cases it is true. There has been considerable frustration, name calling and blaming, and this often leads to even more confusion.

The reality is that this is a very serious situation. We hear politicians often speak about how they did not raise taxes, but when they cut back subsidies, or add to costs, their actions or running away from taking action, often has a tax raising impact and result.

Many in our area have seen their real estate taxes increase by thousands of dollars in just the past two years. This must be addressed and controlled before the situation becomes more dire. Without blaming others, what are the solutions and how can and should they be implemented?
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