Real Estate Tax Increase

As an Erie County lawyer, I have fielded many questions from confused clients about the property valuation tax increase.  One cause for confusion is that the reduced increase in taxes has been called a “tax cut.”  The commissioners correctly called their action a reduction in the state mandated real estate tax increase.  That increase is estimated to be 25% to 30% more than your current tax charge.  The Erie County part of the tax increase is approximately 4%.  The county is forgoing collecting 4% of the increase.  Thus, in concrete terms, if you currently have a home market valued at $150,000 and you pay $3000 annually in real estate taxes your tax will increase to $3750 to $4000 minus 4% of the increase.

Thus, you will have a reduction of $30 to $40 for one year.  Of course, this tax break becomes much larger the more expensive your property is valued.  For instance, if you own a $2,000,000 home on the lake or a mansion on five acres near Plum Brook Country Club , or you own hundreds of rental units,  your tax increase relief will be  quite substantial.  Hopefully this helps clarify the upcoming tax increase.