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A lot of this depends on the homeowner, as some may have tax exemptions(think Veterans, Enhanced STAR, etc.) or it could be a matter of the neighborhood/part of the area you live in. I say this as someone whose parents are retired and have been in the same house for almost 43 years in a highly regarded school district.
$400k is only 10k above the median in an area like Jacksonville, while the median is $260k in the Buffalo area.
Again, for those not familiar, property tax rates will vary by county, town, school district, etc. So, what one or two people state can be something different for someone else. So, to use the parent's home for an example, due to 3 property tax exemptions, they pay $4200 for a home assessed at $165k, with the school tax portion making up about 75% of the total property tax. Keep in mind that this is a household of retirees and in a school district that is widely viewed as being one of the better SDs in the area. In my case, I have a property assessed a little bit lower and pay less in property taxes, while getting a Veterans and STAR exemption in a solid/good SD. So, this illustrates that things will vary based on other factors.
I don't think anyone disputes the fact that the property taxes are outrageous in WNY. A million dollar house in Florida has less taxes than a 400k house in WNY. People are also hurt by the lower house appreciation in WNY, so when they move they are shocked by the prices. I lost money on my Buffalo house after 11 years and all the upgrades in a highly sought after area with excellent schools. If we were moving to Florida today, we could not even begin to afford anything like we currently live in.
I don't think anyone disputes the fact that the property taxes are outrageous in WNY. A million dollar house in Florida has less taxes than a 400k house in WNY. People are also hurt by the lower house appreciation in WNY, so when they move they are shocked by the prices. I lost money on my Buffalo house after 11 years and all the upgrades in a highly sought after area with excellent schools. If we were moving to Florida today, we could not even begin to afford anything like we currently live in.
Tax rates are higher, but the total home prices are just lower. Hence, the likely reason the area made the list.
You also have to think of what you can get at a certain price by area. Meaning, what may be $1 million in an area in FL, may only be 2/3rds the price in the Buffalo area, given median home prices.
Some may also say that the services vary between what the taxes pay for in Buffalo, given snow removal, the school tax aspect(think of staff), maintenance due to weather, etc.
Also, when looking at income, Buffalo would be higher than many areas in the South according to this source that is based on Annual Average Wage: https://www.bls.gov/oes/current/oessrcma.htm
Again, all of this will depend on one's situation and other factors, but the point of the article is in relation to information like the opportunity index presents.
None of this changes the fact that the property taxes are outrageous. As your house appreciates your tax bill increases and the area has substandard appreciation rates which are fine if you never move. The lower price of the house is negated by the higher property taxes which factors into your monthly budget. Lets say I moved to Florida 10 years ago and bought a house for 300k, that house is most likely worth 600k and my tax bill is around 2k because of the save my home amendment. Lets say my twin brother bought a house in Buffalo 10 years ago for 300k and that house is worth around 450-500k and my tax bill is 9-10k. We have the same mortgage payment but mine has stayed the same and his rose substantially because of the tax increase. My tax bill is around 150/month and his is around 7-800/month. No amount of indexes or studies can get around these basic facts
Taxes on our house in the town built in 1054 ran around $4600 - small 3 bdrm ranch - we're in Alabama now and my son pays less than $800 on a house 2 times as large, 17 yrs old and estimated to sell for over $300,000. Granted he has to pay $30 for garbage pickup each month - but that's it. My school taxes use to be less than 1/2 the county taxes - now they are more than the county taxes if we didn't jhave the STAR program and how many schools have shut down.
Taxes on our house in the town built in 1054 ran around $4600 - small 3 bdrm ranch - we're in Alabama now and my son pays less than $800 on a house 2 times as large, 17 yrs old and estimated to sell for over $300,000. Granted he has to pay $30 for garbage pickup each month - but that's it. My school taxes use to be less than 1/2 the county taxes - now they are more than the county taxes if we didn't jhave the STAR program and how many schools have shut down.
School Taxes are always more than County taxes, as they make up the biggest portion of property taxes.
You also have to consider the type of community that is being compared as well.
As for the other post, again, property tax rates are high in part due to the lower housing prices and property taxes will vary by many factors. So, given the higher housing prices everywhere, this is really a matter of either paying more to the bank or a little to the government for services, some of which aren't necessary in some states. With that said, the housing opportunity is still higher when looking at income in relation to home prices.
School Taxes are always more than County taxes, as they make up the biggest portion of property taxes.
You also have to consider the type of community that is being compared as well.
As for the other post, again, property tax rates are high in part due to the lower housing prices and property taxes will vary by many factors. So, given the higher housing prices everywhere, this is really a matter of either paying more to the bank or a little to the government for services, some of which aren't necessary in some states. With that said, the housing opportunity is still higher when looking at income in relation to home prices.
Taxes are high because NYS spends more per student than any other state. When you factor in lack of price appreciation, its not really a bargain since your taxes will rise as your house increases in value. When you retire or lose your job, the high taxes become a huge burden and if you decide to relocate you will be hampered by the lack of price appreciation vs other areas. I pay less in taxes now for an infinitely nicer house and they have only gone up a few percent in 7 years.
Taxes are high because NYS spends more per student than any other state. When you factor in lack of price appreciation, its not really a bargain since your taxes will rise as your house increases in value. When you retire or lose your job, the high taxes become a huge burden and if you decide to relocate you will be hampered by the lack of price appreciation vs other areas. I pay less in taxes now for an infinitely nicer house and they have only gone up a few percent in 7 years.
You also have to factor in teacher/staff requirements and the unions.
Again, the tax aspect depends on the homeowner, as some homeowners have/get exemptions that others don't. It isn't a "one size, fits all" situation. You may have one experience, but I already gave a real world example in terms of my retired parents and there are others that make due. Let alone that some have lower taxes than others. So, this is why I said that the homeowner has to take many factors into consideration.
You also can lose your job in these lower property tax states and have a bigger mortgage to pay. So, that goes both ways. Let alone the bigger booms and busts.
The fact still remains that the housing opportunity index is higher in the Buffalo area, even with the property tax rate.
Last edited by ckhthankgod; 01-19-2024 at 08:15 AM..
You also have to factor in teacher/staff requirements and the unions.
Again, the tax aspect depends on the homeowner, as some homeowners have/get exemptions that others don't. It isn't a "one size, fits all" situation. You may have one experience, but I already gave a real world example in terms of my retired parents and there are others that make due. Let alone that some have lower taxes than others. So, this is why I said that the homeowner has to take many factors into consideration.
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When comparing taxes between regions, it would be helpful to compare the actual tax BEFORE any exemptions. Anyone qualifying for an exemption can then plug it in for their personal situation.
The fact that NYS has these exemptions is proof that our "leaders" know they are overcharging us, and is just political gamesmanship as NYS becomes more and more unaffordable, as they avoid getting to the root of the problem.
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