New York’s property taxes are too high.
New York’s property taxes are too high. Albany and localities are both to blame
by Robert B. Ward,
Almost everyone knows by now that New York’s taxes are too high. Where, exactly?
One major problem, certainly, is our heavy property-tax burden. The latest Census figures show property taxes in New York averaged $1,328 per resident in 2000. That cost was fourth-highest in the country, and 50 percent above the national average.
About 62 percent of the $27.5 billion in property taxes collected statewide in 2001 went to public schools, including those in New York City, according to the Office of the State Comptroller.
New York City (not including its schools) and other cities around the state accounted for another 13 percent, and the 57 counties represented 12 percent, of the total property-tax burden. Towns, villages and special districts collected and spent the rest.
High property taxes raise the cost of doing business in the Empire State, thereby driving jobs elsewhere. They also drive up housing costs for New Yorkers of all income levels (including those who rent).
State government policies on Medicaid, school spending and public employees are partly to blame for high local spending and the high local taxes that result. But it’s also true that local practices in those areas differ, with varying costs for taxpayers.
Many unions and other pro-spending lobbies argue that higher state aid to schools and municipalities is the answer to high property taxes. In 2003, the Legislature bought that argument and imposed big tax increases at the state level, in large part to generate more money for local governments and school districts.
Senators and Assembly members said their tax increases would avert big increases in property-tax bills. Many editorial writers agreed. For instance, Newsday , whose readers were hit especially hard by Albany’s income-tax increases, said the state-level tax hikes would “protect local property taxpayers.†Civic groups on Long Island joined in the chorus.
But it didn’t work.
School districts boosted spending at twice the inflation rate. As a result, school taxes went up sharply – by an average 8.6 percent in Newsday ’s territory, for instance.
Legislators also said higher state tax increases would protect the Medicaid program and the county governments that pay part of the Medicaid bill. But property taxes in most counties also rose, many at double-digit rates.
Overall state aid to localities and school districts rose 29 percent from 1996 to 2001, according to the Office of the State Comptroller. That was twice the inflation rate. Yet local property taxes still jumped by a total of $3.5 billion.
Continually expanding payrolls are one reason. In the two-year economic slowdown after the September 11, 2001, terrorist attacks, state government trimmed its payroll. But local governments statewide added 13,000 jobs.
Indeed, the public-employee unions that claim higher state taxes lead to lower local taxes use their lobbying clout to make sure it seldom actually happens. Instead, they push to use state aid for more local jobs, and higher wages and benefits.
Both state and local officials must work to control local-government spending. That’s the only way we’ll ever reduce our heavy property-tax burden.
PROPERTY TAXES PER CAPITA,
2000
NYS $1,328
Illinois $1,168
Michigan $ 956
U.S. avg. $ 885
Pennsylvania $ 820
California $ 775
North Carolina $ 572
By Robert B. Ward, Director of Research, The Public Policy Institute of New York State
FYI…
5 users commented in " New York’s property taxes are too high. "
Follow-up comment rss or Leave a TrackbackHave you ever driven in another state? The highway systems in other states are falling apart. Have you ever gone to college in another state? There is no SUNY system anywhere else in the country (Cali notwithstanding). Have you ever been unemployed? The social welfare benefits in NY are generous enough to help you get back on your feet. Do you consider NY a nice place to live? Aparently, you live here.
I would much rather pay more in taxes each year and live in a society where we take care of infrastructure, schools and the less fortunate, than pay a little less and not have all these things. I cant fund schools and fix bridges out of my own pocket, but when i pay taxes these things get funded. If you want a state that pays low taxes, move to Florida, where the schools are last place in the nation, the roads are falling apart, and the state must rely heavily on the federal government for basic services.
Is there waste?
Is there waste in government? Sure. But the argument that government services can be achieved cheaper by the private sector is nonsense. The government does not have shareholders to answer to and no CEO’s to give golden parachutes to. And if they pay workers a good wage, thats more money that gets spent in the economy, more middle class homes, and more people who can go to the doctor when they get sick.
I have lived in Massachusetts, California, Virginia and Arizona. The roads in all those states are in better shape than the roads in New York. Mass cut the tolls on the Mass Turnpike and the last time I went there the roads were in great shape and as soon as you get into NY the roads changed.
Your taxes paying for the bridges? Sure it would be worth the billions we pay the thruway authority if they kept them safe.. Look at the 290 bridge that was given a passing grade in the last inspection. Now look at it after Luke Moretti blew them in. The bridge sunk 4 inches.
They have had to reconstruct the whole load bearing structure with new steel and concrete. I can only wonder if the put salt in the concrete as they got caught doing in Mass. It made for job security by the highway depts.
Colleges in NY are a wasteland and a dumping ground for old politicians getting extremely high salaries. I spoke to a college professor the other night and he was ticked off because Pataxme vetoed the early retirement bill. It was like an awakening when he found out we are pauing his pension for the rest of his life, he pays no state taxes on it and we pay his healthcare.
Avg salary in Erie County is in the low 30’s and these college professors get into the 6 figures with pensions and healthcare we can only dream of.
I’ll pay the taxes if the job is being done the best way and most efficient way. It isn’t. Medicaid is 47 Billion and has 40% fraud, schools cost us 27 Billion and we have some of the worst in the country.
Do yourt job and I will have no problem funding it. TFail at your job and you need to be replaced, end of subject.
SUNY Buffalo, Albany, Geneseo, Cortland, Oswego, Brockport are wastelands? I doubt the thousands upon thousands of graduates from these institutions would agree with you. The MBA program at UB is ranked top 50 in the WORLD. Geneseo is voted #1 among public colleges in the NATION…and on and on. What are you talking about?!?!? Would you vote to cut funding in the SUNY system if elected?
And sure, you can point to this bridge and that bridge and say they messed this up, but as you know, that work is contracted out to the lowest bidder…I fail to see how a structural steel problem is Albany’s fault.
And i’m sorry but the roads in other states are terrible…I have driven all over this country, the roads in NY are second to none…we have reflectors, mile markers, visible signs, no potholes, clean reststops etc. etc. etc.
Medicade is a FEDERAL program, and the schools are a function of local property taxes, as i’m sure you are aware. Grand Island schools are that bad? perhaps the city schools are, but thats because of a host of other socieoeconomic factors. The suburban schools in NY are some of the BEST in the nation…just look at the rankings of top highschools in the country, my god, CityHonors is one of the BEST!
Lakeshore Central Schools have a “top ten” budget yet rank only in the high 90’s in a recent “top 100 WNY Schools” . But we’re making progress. The $158000 per year superitendent bailed on us and he was replaced with someone else for about $130000. I wonder if Adam is a memebr of the LS Teachers Assc.
Wow, thats a great guess…how did you know? No, sadly i am not a lake shore teacher…but the schools in your neighboring communities, orchard park, east aurora, and hamburg are doing quite well. Again, anyone can point to one example of what they percieve to be wrong, but on the whole, i think the suburban schools in western new york are excellent. considering the number of higher education institutions in the western new york area and the high percentage of graduating senior who attend these institutions is proof positive that the school systems in the suburban communites are performing at a high level. To get this high level of achievement, we have to pay for things like books, supplies, and yes, teachers and administrators. Like any job market, money attracts tallent. Can you name ONE industry where high pay does not attract high quality workers? its simple market economy theory, the talent goes where the money is. Buffalo teachers make a fraction of what suburban teachers make, and look at the result. and teachers as a whole make a fraction of what someone in private industry makes, so if you were a college graduate with the prospect of making $25,000 as a teacher or $40,000 in private industry, what would you do? again, money attracts talent, if you want quality, you have to pay for it. in the suburbs, the school budget comes from property taxes…you cant have it both ways.
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