For many years upstate New York has been suffering from perpetual decline in itÃ¢â‚¬â„¢s economic development. Businesses are leaving, people are getting poorer, and it looks like nobody can find the right solution to reverse decline in the area.
However, the solution to this problem can be found in the regionÃ¢â‚¬â„¢s backyard. This solution was implemented throughout different parts of the country and it has worked. It is simple: we have to change the law to give future homeowners tax abatement for 10 years on all local taxes for new construction.
Right now we have a huge supply of vacant land and properties in various states of decay that can be used for new construction. What is stopping potential developers from buying these properties are substantial local taxes that new homeowners will have to pay on their homes. These taxes are the major determent for potential buyers to invest money into new construction.
On the other hand, if we give tax abatement for new home construction all parties will benefit from it.
1. The buyers will have peace of mind knowing that in the next ten years they will not pay local taxes, instead they will concentrate on paying off their construction loans.
2. Real estate brokers, real estate agents, lawyers, paralegals, surveyors, and their supporting personal will benefit from the sales.
3. Construction workers, electricians, and plumbers will be working from five to ten months on each new construction.
4. Local suppliers like: lumber, cement, brick, roofing and other businesses will benefit from it.
5. Local government will get proceeds from the sale of a property; they will receive taxes from above mentioned businesses and individuals.
As I stated earlier there is nothing to loose. Each buyer will inject at least $400,000 into the local economy immediately, and will contribute continuously in the long run. Upstate New York can only gain from the tax abatement on new houses construction.