Few things are more frustrating than property taxes, because there’s nothing you can do about them but pay.
Forbes Magazine did an excellent article on Who Pays the Highest Property Taxes? In any article on this subject, the answer is either New Jersey or Upstate New York. Depending on the formula you use, both answers are right.
Passaic County, New Jersey homeowners have the highest median property tax bill in the country, at $6.928.00 per year. However, they also have a gigantic median home value at $398,000. Their tax burden is a mere 1.7 percent of the value of their home. Most families budget a monthly payment of mortgage, tax and insurance, so the majority of that monthly payment feeds the loan for the house. In the end, most of that money comes back to the homeowner when they sell the home.
Now take the city of Syracuse where I reside. According to Forbes, Onondaga County homeowners pay a median $3,056.00 tax bill on a paltry $120,000.00 property. Our tax bill represents 2.5 percent of the value of our home each year.
But wait. There’s more! Now how much would you pay? I don’t know anyone in Onondaga County paying just 2.5 percent. I pay nearly 4 percent, and if you think all I have to do is challenge my assessment or bill, forget it. I tried it and was told it was correct.
Why there isn’t some widespread tax revolt in this region astounds me, but I think I know the answer. Most people here don’t know how badly they’re getting ripped off because it’s the only house they own. Vacation homes in this area are taxed just as high. It is the people with vacation homes in other states who know Upstate New York taxes are unreasonable, but beyond the grumbling over cocktail hour, no one does anything about it.
Municipal finance experts will say taxes are a complicated formula involving more than just the value of the home. Some states with high tax burdens have low or no sales tax. But not us. All our taxes are high. I’ve never heard an argument that adequately explains our disproportionate share of property taxes. And someday, I won’t care. Like so many others in this region, I will fix the problem by moving out of state where I have a vacation home requiring less than one percent of the home value in annual property taxes. Now that I can control.
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{ 4 comments… read them below or add one }
Maureen,
Both my husband & I are NJ natives. We thought NJ property taxes were bad, and they are; we had no idea any other region in the country could be worse, but when we relocated to Camillus (and now Marcellus) in 2000, with my husband’s job, we learned we were wrong.
We’re fortunate. My husband has a good job. Still, I find the taxes (sales & property) atrocious & frustrating beyond compare. I hurt for all of the good, hard-working folks who have lived their entire lives here. It’s not right, but as you said, I wouldn’t know what to do or where to start.
We pay 3.5% of the value of our home in taxes. People from other states don’t believe us when we tell them that.
And we lived in states like NJ & PA, prior, that have NO sales tax on clothing – as it should be. Imagine our shock when we moved up here and had to pay tax on clothes! I don’t understand the county tax system up here either – how each county has different taxes. In NJ & PA it’s uniform throughout the state – 6% – much more reasonable than up here.
And then there is Delaware, another state in the region down there where we lived – ZERO sales tax, and property taxes that are insanely low (less than 1% the assessed value of the home).
I readily admit, however, that Delaware public schools are terrible, because there is no tax base to support them. However, PA & NJ have wonderful public school systems on a lot less than NY costs. I’d actually say they’re better than the NY public schools.
Well, I’m rambling, but when I came across this entry of yours it struck a nerve. I am so angry about the property tax rate, but I don’t know what to do. Angrier still that as the price of homes are dropping, the property taxes are staying the same or increasing. It’s jut not right.
Hi Cathy, Well, now I’m the one who’s all riled up again. Reading your note reminds me of how much of a problem we have here and no one in Albany is doing anything about it. Instead, we spend money on study after study to determine why so many people are moving away from Upstate New York. Duh. We champion the affordability of our homes but fail to see the look of horror on the face of a potential buyer when they learn the monthly total for mortgage and taxes would buy them a much better home anywhere else. And at the end of the loan, they get most of the money back when they sell the house! We’ll never get it, I’m afraid. Thank you for your thoughts and forgive me for climbing on my soapbox again. Best, Maureen
No apologies necessary – I’m right up on that soap box with you!
My husband & I are currently refinancing our home, down to a 15 year mortgage. We plan to have the house paid 15 years from now, right before our son (our only child) heads off to college (should he so choose).
Thing is, as you said, even after the mortgage is paid off, as of right now, if looked at on a monthly basis, we pay $1100 a month in town/county/school taxes — that will only increase over the years. That’s more than a mortgage for most people, and that’s our taxes ON TOP OF the mortgage, and after the mortgage is paid off.
I don’t know how how the senior citizen/elderly population do it – they’ve been on fixed incomes for years, probably have their homes paid for, and STILL have to pay out full mortgages the rest of their lives, and for what?
It’s sad & frustrating, so you are not alone. Sorry to have riled you up some more. It was a simple fluke that I happened upon this older blog entry of yours – but it struck a nerve, that’s for sure.
Take care & keep writing – I enjoy reading the thoughts you put into words.
Thanks again Cathy. I share your concern for people on fixed incomes, particularly the incomes that won’t keep up with the tax rate. Enjoy the day. M.