Anyone who has lived in Port Washington, or probably anywhere on at least the North Shore of Long Island, has observed the ever-increasing real estate tax bill they are faced with every year. Although the County tells us they haven't raised real estate taxes, the state has imposed a tax curb, the Town and the Schools all claim to have stayed within these guidelines, have you noticed that nevertheless, your real estate taxes continue escalating. Many have seen their real estate taxes escalate by three to four (or even more) times in the past two decades. So, how does that impact each of us, our real estate values, our standard of living, and our pocketbook?
Even relatively lower priced or mid-priced properties around here carry approximately five figure real estate bills. Many people witness the escrow component of their monthly mortgage payment continue to rise, predominantly because of the increase in taxes. To put this into perspective, someone carrying a 30 year conventional mortgage with approximately a 4.5% mortgage rate will pay, in principal and interest, about $1,500 per month. If their real estate taxes amount to $10,000, or approximately $833 per month. Put simply, the real estate taxes would amount to approximately one third of the monthly installment. Obviously, this can become a stifling restriction to, especially, many first-time homeowners, as well as to many individuals who have retired and now live on a fixed income.
You might ask why, if the tax cap is supposed to be, for example, 2%, and a budget is passed that proclaims that, why do our real estate taxes often rise at a much faster pace? It is because the cap refers to the total amount of tax revenue raised, and changes in tax structure, assessments, valuations, and percentages that municipalities multiply the assessments by, in order to determine the tax, often vary.
Obviously, it takes money to run governments. Infrastructure expenses, maintaining schools and paying for quality education, etc., don't come inexpensively. But, we must consider if we have become overly reliant on real estate taxes (as well as sales taxes), because they are often easier for our politicians, etc., to justify by stating that their portion is not the cause. Yet, all any homeowner cares is what his total bill is. For example, if the state cuts subsidies, or the county does the same, or the the town behaves likewise, then the expenses and revenues must come from somewhere!
When is it time to proclaim that the present system is growing out of hand, and there must be a more responsible, more responsive, less redundant, more efficient and effective way for us to pay for the various costs of running our governments, etc.?
This post was contributed by a community member. The views expressed here are the author's own.
The views expressed in this post are the author's own. Want to post on Patch?
