That’s the headline on a CNN story posted yesterday to its website.
The piece — about the effect of the new tax law on high property tax states like Connecticut — was illustrated by a stock photo that seems to show Westport.
Whether that’s our town or not, there’s no denying that residents here have been hit hard — along with our counterparts in places like New York, New Jersey and Illinois.
The CNN story concludes with this assessment from a local realtor:
While many towns in Connecticut also have relatively high property taxes, some towns further up the Long Island Sound — like Westport or Fairfield — have lower bills than Westchester and are still a commutable distance from Manhattan.
“In Westchester County — towns like Larchmont, Rye, Mamaroneck — the taxes are crazy high,” says Mary Ellen Gallagher, a real estate agent and partner of Compass Westport Team KMS Partners in Connecticut.
“Younger people can’t afford those taxes and are looking [in Connecticut] where you get more house and pay less taxes, but you’re further from New York.”
She says for many luxury buyers, taxes don’t always play into their decision to buy a new home, but can be a deterrent for those looking to move up to a larger and pricier home.
“I think it is hurting the luxury market,” says Gallagher. “Because people aren’t trading up.”
(Click here for the full CNN story. Hat tip: Seth Van Beever.)
Yes the picture is Owenoke. Nice pick CNN!
Sure looks like Owenoke in the picture. High RE Taxes is a way of life for high end homeowners. The State Governments are looking for more and more ways to burden those that HAVE.
As well they should.
Westport has some of the lowest real estate taxes in the area. For anyone purchasing a home who requires mortgage financing, the inclusion of real estate taxes and homeowner’s insurance is often included with the principal and interest payment. Borrowers are required to qualify for a new mortgage based on those factors. So, yes, some of the price points here are higher, but lower real estate taxes coupled with declining interest rates can make a big difference in what homebuyers can afford.
Susan. The real estate taxes are about to go up.
Bart, I haven’t followed the town budget that closely this year, but seems like the mill rate won’t be changed much this year. Why always with “the sky is falling” posts?
John-the sky fell. The new state budget will include passing 25% of the state teachers pension plan to towns and cities in CT. Making matters worse for Westport, the legislation will include a surcharge by the state to Westport as the town pays the Westport teachers more than the state average. Twins like Westport will be required to absorb a higher cost.
This one move by the state will add $4-$8 million in additional budget costs to Westport. Once the state budget is approved, just watch what happens.
You should also expect to see taxes imposed on real estate transactions so brokers will now pay a sales tax. Be interesting to see how that cost is passed onto home sellers.
CT is also looking at a state property tax in additional to the town property tax.
All this was created by the past Governor, Malloy, with support of his dem buddies, extending the state worker agreement (SEBAC) till 2027. This guaranteed the continuance of the over the top pension and medical plans for state workers, guaranteed 3.5% salary increases and one time bonuses for all.
Just so you know, the teachers pension plan costs are forecasted to grow by $3-$5 Billion. That is with a B. As those costs go up, Westport will have to aboard the increased costs into the towns budget.
With the decline in home prices in Westport, the Grand List will decline. It has to and it will. The worst is the decline in the more expensive homes who happen to pay higher property taxes. As their homes decline and they have, their property taxes lid will eventually decline. But everyone else will have to make up for the loss.
Get ready my friend. It is coming and coming quickly. Numbers don’t lie.
Keep voting Democratic folks. Connecticut is circling the drain because of that party!
Keep voting Dem folks. Connecticut is circling the drain because of that party!
Time to flee to a red state
So leave.
Go Raymond!
BTW, under EVERY democratic administration since the 1920’s, taxes have been lower, GDP has been higher, GNP has been higher, and unemployment lower than under ANY Republican administration.
A Red state might suit you just fine.
Governor Malloy massively raises state income taxes twice and the CT economy is lower and so are home prices. And the CT economy and home prices continue to trend lower.
Hmmmm. So why are so many ct residents claiming Fla residency…I think we all know the answer