Property Tax Variations?
I’ve been looking at houses and noticed that property taxes have varied wildly from $3k -$8.5k year for a four floor brick/brownstone. Why? Some of these houses were poorly renovated or not renovated at all yet were assessed very high taxes. What determines the tax rate?
I’ve been looking at houses and noticed that property taxes have varied wildly from $3k -$8.5k year for a four floor brick/brownstone. Why? Some of these houses were poorly renovated or not renovated at all yet were assessed very high taxes. What determines the tax rate?
I fyou go on the De[artment of Finance website, they probably have FAQs which would answer most of your questions. Most the information above is not accurate. The city does change estimated market value each year, and does take into account recent comparables (this is new under Bloomberg). Taxes for single family (meaning one, two and three family) houses are figured on a set rate of the “assessed value” – which is not market value. The city isn’t “reserving a right” to raise the assessed value – it is limited by law from increasing assessed value more than 5% (or somewhere around there) per year. Thus you have the uneven tax burdens on single family homes, which is very hard for the city to readjust, particular in times of price increases.
I am not sure what 9:51 means by propety holders (and condo buyers) being subsidized by tax payers. What we have here is a system where residential homeowners (1, 2,3) are subsidized by commercial property owners, and by city income taxes. NYC is fortunate in all the commercial property it has, and thus it sucks from that teat. Suburbs would do it if they could, but they can’t. And of course many of those who work in NYC and live in NJ no longer pay any income tax to NYC. Those who do get screwed are co-op owners whose building is treated like a commercial property (they own shares in a corporation which tehn rents them their apartments). Condos, because they are all new, have an assessed value much closer to market value.
Sorry about my earlier comment being short sided. Purchase price is one of many factors in assessed value. The tax system dosn’t make a whole lot of sense to me either. However, for all it’s complications, I’m glad the tax burden on brownstones are low.
property taxes were very clear – a percentage of the assessed value. The problem was twofold – 1. that would make property taxes very high for long time residents. 2. assessed values never kept up with actual values. I supposed what happened is politicians saw the advantage in gaining votes from current residents while holding onto the idea that taxes should ultimately by high, so in came these crazy phased increases. And of course assessors still under-assess vs recent sale prices and don’t re-assess unless the property passes through the city books again anyway.
Result: chaos. And then 421a abatements just add another layer of confusion to condo buyers. As far as I can see the city is reserving the right to charge future owners an absolute fortune in taxes while there is this blizzard of regulations operating at cross purposes keeping most current property holders (and condo buyers) subsidized by tax payers (they are not paying a fraction of what they’d pay in even an unremarkable town in new jersey).
IMO they should scrap the system and start again with a much lower percentage of true assessed value. Then watch the owners of those $5m piles in the slope scream blue murder because their property tax bill becomes actually noticeable!
Property taxes on townhouses in NYC are a joke. Half the brownstones in Brooklyn seem to have property taxes in the $3000 a year range even though they’re worth millions.
The property tax formula should be very clear and well understood, not a complicated formula nobody understands.
From a property tax perspective, buying a brownstone could be a better move than buying a new condo since often their property taxes are much higher.
How and what abatements do you get on existing constuction?
Taxes aren’t based on purchase price, they’re based on assessed value multiplied by a rather complex formula with formulaic increases overriden by laws restricting tax increases.
Bottom line, I think someone makes them up.
Note, for the last few years we’ve been getting abatements on our property taxes. I think about $400 this year. Give or take.
Wrong for NYC. Houses are not taxed/assessed on new purchase price.
Taxes vary wildly depending on location, class (4 family/4 story) will be higher than 2 or 3 family of same size usually.
If CofO is changed or has been changed in recent years – you’ll probably have much higher taxes.
When a house is sold, the new owner is taxed on their purchase price. The house is assessed on that amount.