Residents across the country are questioning their high property tax bills as some of the country’s largest retailers seek tax cuts. Aggressive tactics are being used by the largest businesses in the United States, helping businesses shrink their property tax bills as locals experience rising property taxes.
Local governments and school districts are losing hundreds of millions of dollars in revenue, as stores such as Target, Walmart, Kohl’s and Home Depot are arguing the true worth of their property.
Businesses contend that no matter how much revenue the store brings in, the warehouse structures are not worth much money themselves. The idea that these warehouse stores are less valuable than their appraised prices continues to mount, as shuttered retail stores spread across the country. Many of these former retail stores remain empty and vacant because the only other entity that can utilize the space is a big retail store.
Small businesses and homeowners are the ones that have to pay more in the end, paying higher local property taxes to help account for lost revenue in many cities.
Texans are dealing with a similar problem, paying $60 billion annually in property tax while the state provides tax breaks to businesses.
Illinois is dealing with property taxes, which remained the same between 2012 and 2015 when property values rose coming out of the recession for 15,800 properties.
Property taxes, and keeping up with the concern of local cities, is an ongoing issue in many states. New York’s Great Rochester Chamber of Commerce is calling for changes to local laws that would cap property taxes at a rate of 2%.
The Tax Cap Coalition is a statewide business coalition that is calling on the state’s governor to make the current property tax cap permanent. The current cap was enacted in 2011 in an effort to keep the property tax cap to 2% or the rate of inflation. The current cap is set to expire in 2020, but it could end as early as June due to New York City rent laws.
Removal of the tax cap would mean that residents of Long Island may have to pay as much as $4,000 more per year than they are already paying. The Coalition is urging local lawmakers to institute a permanent cap that would stop residents from paying even higher property taxes.
Similar measures are being proposed in states across the country, as homeowners continue to suffer from higher property taxes and larger businesses receive tax breaks.