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The market value of all property around the city is forecast to decline between 2009 and 2010 but property taxes that the city collects will rise 10 percent, according to the Independent Budget Office. The current issue of the Gotham Gazette examines why that’s the case. The main reason is that increased market values are phased in over a five-year period; each annual increase is also capped, so properties in areas that have experienced rapid run-ups this decade can take years to get caught up. The more interesting part of the article is the discussion of how the property tax system continues to favor house owners over owners of commercial buildings and co-ops and condos. The most glaring example is that one-, two- and three-family houses are assessed at 6 percent of their market value versus 45 percent of market value for the other property types. Can you imagine what would happen to the value of your typical house if its properties went up seven- or eight-fold?
Why Property Taxes Rise While Real Estate Falls [Gotham Gazette]


What's Your Take? Leave a Comment

  1. Ha ha DIBS. I’m no masochist. I’m just saying if *everyone* pitched in more (you sound like you make a lot more money than I do), maybe some of our public services could be improved (schools being a key one that I’m concerned with). I’m not talking huge increases, but small bits, if everyone pulls their oar, can make a real difference. NYC RE taxes are, in my opinion, quite shockingly low.