Discussion: Tax Increases from Renovations
We got an email from a reporter at the New York Times researching a story about property tax increases. Evidently there are some unhappy homeowners in Harlem who have been hit with big increases as a result of significant renovations and/or C of O changes. We haven’t heard much griping from Brooklyn brownstoners, but we’d…
We got an email from a reporter at the New York Times researching a story about property tax increases. Evidently there are some unhappy homeowners in Harlem who have been hit with big increases as a result of significant renovations and/or C of O changes. We haven’t heard much griping from Brooklyn brownstoners, but we’d like to know if anyone has seen this happening. According to the reporter, those with 4-family houses have been particularly hard hit.
But increases are phased in over time, so it’s not like the homeowner’s new tax bill will be trippled from one year to the next. Anyway, the tax write up on Property Shark’s listings does a really good job of explaining the ins and outs.
Also, whenever you change the C of O, the city does a reassessment. So any C of O change will be accompanied by a huge tax increase, since most likely the previous assessment was done many years ago.
HERE’S WHY
Property tax is only levied on a portion of the market value. This portion is called the assessed value. For 1-3 family homes and 1-3 story condos, taxes are levied on 8% of the market value. For all other properties,( 4 FAMLIES AND UP ) taxes are levied on 45% of the value.