What are the property tax rates in Sullivan County?
Property taxes here consist of two major components, the "property" tax itself (which includes county and township taxes, plus levies for the volunteer fire department, ambulance service and libraries) and the school tax for the school district in which the property is located. Added together, the tax rate varies from a low of about $25.00 per thousand of assessed value to a high of about $65.00 per thousand of assessed value. Generally, taxes in the county run $35.00 to $38.00 per thousand of assessed value in much of the county.

What is the assessed value of the property for tax purposes?
Each township or village has a tax assessor who sets an assessed value for each property in the township or village. Under New York State law, properties must be assessed relative to similar, comparable properties. That means that a 3 bedroom, 2 bath ranch house on 5 acres of similar age and condition in any given township should have roughly the same assessed value. While within a given taxing authority it should be similar, the assessed value can vary widely for similar properties in different townships. For example, that 3 bedroom, 2 bath ranch house might be assessed at $130,000 in Fremont township, but $180,000 in Bethel township, resulting in widely varying taxes. Adding to the complexity is something called the "equalization rate", so one township may assess at close to full market value and then apply a percentage adjustment, while others may assess at somewhat below market value, but then levy taxes at 100% of assessed value.

When I buy a house for more than its assessed value, will the taxes go up?
Not necesarily. Tax assessors are not supposed to do "spot" reassessments on a single property — with one major exception. If it is apparent that there has been a material change to the property (e.g. a basement was finished into living space, or a garage or swimming pool was added) that is not reflected in the assessors' tax record, they can reassess the property to reflect those changes which increase value. Generally, however, the assessment will not substantially change when you purchase a property. For example, if you pay $250,000 for that ranch house in Bethel assessed at $150,000, the house must still be equitably compared to other similar houses — so if the Bethel tax assessor raises your assessment to $250,000 (which is the fair market value of the house, since you paid that amount), they would technically be required to increase the assessment on other similar houses to that amount.

What about township-wide reassessments?
Ah, that's another story. Tax assessors are generally supposed to "reassess" their jurisdiction every few years. They do a lot of adjusting — and some people'sassessments — and taxes — can go up while others can go down. I always advise my clients to be financially prepared to pay property taxes on the full price of their house, even though they most likely won't be required to do so. When there is a reassessment, you have the opportunity to "grieve" your taxes, to ensure you are equitably treated relative to other similar properties.

Why are taxes in Sullivan County so "high"?
There are 3 primary factors that contribute to relatively high residential property taxes here — low density, relatively low property values and a small commcerial tax base. The biggest contributor is low density; what makes Sullivan County so attractive for a second home getaway is also what pushes up property taxes. In New York City, there can be thousands of tax paying housing 'units' in a square mile. Here, there may be only a hundred (or even fewer) tax paying housing 'units' in a square mile. There are still roads to maintain and plow and services to provide, but the cost of those services is spread out over a much smaller tax base.

Second, property values here are relatively low compared to New York City and its suburbs. Our average sales price here is about $220,000, and the average assessed value of the entire housing stock here is less than that. So the rate per thousand is higher. In Westchester County, you may only be paying $15.00 per thousand, but there are a lot more houses, and they have a lot higher assessed values.

Finally, Sullivan County is primarily rural. We don't have a large commercial base and few large corporate taxpayers. Those big office buildings, factories and warehouses close to the city assume a huge amount of the tax burden, reducing the tax burden on individual residential homeowners. Also, here in Sullivan County, a lot of our land is taxed at lower "agricultural" rates or is in the forestry protection program, with substantial tax abatements. When you're driving through Sullivan County enjoying the beautiful and relatively unspoiled vistas, that comes at a cost — those pastoral farmlands and unspoiled woodlands are only economically viable because they're taxed at lower rates.

Aren't taxes high in Sullivan County because of all the non-profits that own property here?
This is a popular misconception, and one that is frequently used to "justify" negative perceptions of certain religious groups. In reality, Sullivan County has less property "off the tax rolls" due to non-profit ownerships than most other New York counties, according to a study last year by the Towne Crier newspaper. However, there are some areas of the county where it is a more significant factor.