Survey finds New Yorkers want government to cap property tax increases and take actions to support homeownership
Statement from New York State Association of REALTORS President Hank W. Fries
Loudonville, NY – May 26, 2010 – Today, the results of the New York Homeownership Survey conducted by the Siena Research Institute show that a great majority of New Yorkers consider homeownership to be a quintessential piece of the American Dream, but one that has become increasingly difficult to achieve and maintain in the Empire State.
The study, commissioned by the New York State Association of REALTORS, finds nearly all New York State homeowners are satisfied with the ownership experience, and they find it to be a comfort to have a place to call their own. Most New York State homeowners expect their home to be a better investment than the stock market, and they expect the value of their homes to rise over the long-term. Homeownership connects people with their communities, and New York State’s REALTORS are proud to help thousands of our neighbors make this connection each year.
The homeownership survey shows New Yorkers understand and enjoy all the positive social benefits of homeownership as well as the financial ones. It also finds our state’s residents are acutely aware of the significant influence government has on their ability to enjoy the long-term benefits of homeownership.
The American Dream of homeownership is in danger here in the Empire State due to unfettered property tax increases, high closing costs and real estate transaction taxes.
Eighty-three percent of Empire State homeowners, who continue to be squeezed by rising property tax levies, want the state to enact a cap on property tax increases. This is a proposal that New York’s REALTORS® have supported for years.
Nearly 80 percent of homeowners have told us their property tax bill takes a bigger bite out of their budgets every year. Three-quarters of New York homeowners think their property taxes are too high.
Homeowners who have suffered during this economic downturn are struggling to provide for their families – and pay their ever growing property tax bill. Each year our quality of life erodes a little bit more as our tax burden mounts.
When you combine our onerous tax structure – for example, here in New York we pay a tax for the privilege of recording a mortgage – with our highest-in-the-nation closing costs, the Empire State’s luster as a place people want to call home and a place to bring business is tarnished.
It is very telling that as we pay more and more, we believe less and less that our tax dollars are being managed responsibly. Two-thirds of New York homeowners fulfill their obligation to pay their property taxes, but don’t believe their hard-earned dollars are well managed or used efficiently.
Our lawmakers should act to stem this tide.
New York’s REALTORS are not the only ones that believe a cap on property tax growth is a necessary first step to fiscally responsible spending. The New York State Commission on Property Tax Relief has recommended a cap on school property tax growth. We support quality education for our children, but we also believe that our schools can accomplish this goal while maintaining fiscal responsibility.
New York State residents think their elected representatives in Albany and Washington can cultivate the growth of homeownership in other ways. For example, 91 percent believe that mortgage interest should be tax deductible and more than half of all New Yorkers support a state tax incentive to assist buyers with paying for closing costs. In fact, being able to make the down payment on a home was ranked as the biggest barrier to homeownership, followed by qualifying for financing. We urge our lawmakers to maintain the mortgage interest deduction and to create programs that break down the barriers to homeownership.
Today, New York’s REALTORS, on behalf of our fellow Empire State residents, continue to urge Albany lawmakers to enact structural reforms to the tax system that will foster tax savings for property owners. Every step the state takes toward lower homeownership taxes is a step toward restoring the state’s quality of life and economic vitality.
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Editor’s Note: The New York State Association of REALTORS is a not-for-profit trade organization representing more than 54,000 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.