New York City is considering changes to its property tax guidelines, and according to New York Times, the proposed changes could have positive and negative impacts on investors and residents alike. The city’s proposal is likely to affect 90% of homeowners in the city, from low-income homeowners to large-scale investors and property owners.
According to NYT, single-family homeowners in parts of Queens, Staten Island and the Bronx are likely to see lower taxes under the new bill. Additionally, low-income homeowners citywide could qualify for a “partial homestead exemption,” limiting tax bills to certain percentages of household income.
Higher priced homes, including luxury condos, are likely to be taxed more, as well as out-of-town homeowners.
“People who own a pied-à-terre in Manhattan will be paying more,” said James A. Parrott, director of economic and fiscal policies at the Center for New York City Affairs at the New School and member of the commission that drafted the bill.
Outside of New York City, changes to tax foreclosure laws in the state are likely to increase the number of foreclosed properties compared to prior years. The Oswego County News reports that county officials could have more than triple the number of foreclosure in 2020 as previous years as new measure cuts the foreclosure process in half.
Statewide, however, ATTOM revealed that foreclosure starts in New York were down 28% in 2019. Foreclosure starts across the nation fell 9% last year. Buffalo, New York—roughly 150 miles west of Oswego—saw an annual increase in REOs with its share rising 16% last year. Honolulu, Hawaii, reported a 34% increase in REO properties.
“The continued decline in distressed properties is one of many signs pointing to a much-improved housing market compared to the bad old days of the Great Recession,” said Todd Teta, Chief Product Officer for ATTOM Data Solutions. “That said, there is some reason for concern about the potential for a change in the wrong direction, given that residential foreclosure starts increased in about a third of the nation’s metro housing markets in 2019. Nationally, the number also ticked up a bit in December. While that’s not a major worry, it’s something that should be watched closely in 2020.”