Increase on Market Value of new house and Property Tax

As greenthinker said, tax = taxable value (which is assessed value – exemptions) * 19.1570% for tax class 1 (1- to 3- family homes) http://www.nyc.gov/html/dof/html/property/property_bill_calculate.shtml Effective market value is derived by dividing assessed value by Assessment Percentage (6%). The value of your home, like many in Brooklyn, has gone up in actual market value at a faster rate than the law allows the assessed value to increase (6% per year, no more than 20% over 5 years) Like I said I don’t think you’d win a challenge of the market value since you paid more than that, and anyway it wouldn’t change the tax you’ll pay for the next several years. What you should pay attention to is “Exemption Value is changing from $3440 to $0” As greenthinker said, apply for basic star exemption to save a few hundred. http://www.nyc.gov/html/dof/html/property/star.shtml

bk1lnite

in Taxes 10 years and 4 months ago

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bkjl | 10 years and 4 months ago

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I recently purchase a 2 family house (Tax Class 1) and I just received a letter from NYC finance that stated my property value has gone up. These are the changes listed in the letter: Market Value is changing from $763k to $916k Assessment Percentage remains unchanged at 6% Assessed Value is changing from $38,983k to $41,321 Effective Market Value remains unchanged at $688,683 Exemption Value is changing from $3440 to $0 Taxable Value is changing from $35,543 to $41,321 The new market value is a bit below but near the price that I paid for the home. I’m guessing this means that property tax is going up but a bit unclear as to by how much. Does anyone have any experience with this? I was also told by a friend that I should challenge this assessment but I’m unsure how since the value is close to what I’d paid. TIA for your feedback.

Arkady | 10 years and 4 months ago

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There’s a City-sponsored seminar tonight at 209 Joralemon at 6 p.m. People from the Dept. of Finance will answer all those questions & give forms to fill if you want to apply for a reduction.

bkjl | 10 years and 4 months ago

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Thanks Arkady. Unfortunately due to prior obligations I would not be able to attend. Do you know if there’s somewhere online where I can simply read up on it? I googled but wasn’t able to come across anything useful. Thanks

GreenThinker | 10 years and 4 months ago

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Billable assessed value x tax rate = Taxes $41,321 x 19.1570% = 7,915.86 Apply for Basic Star, you’ll save a few hundred

bk1lnite | 10 years and 4 months ago

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“Effective Market Value remains unchanged at $688,683” means that property tax increases are already capped. Assessed value can only increase 6% per year, no more than 20% over 5 years. http://www.nyc.gov/html/dof/html/property/property_val_assessment.shtml If you challenged, it wouldn’t reduce the tax you’ll pay unless you were able to successfully argue that the market value is less than $688,683\. And you’re right – it’s hard to make a case for that since you paid what you paid recently.

Arkady | 10 years and 4 months ago

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You can find all the info on line but it’s very confusing. There are no more seminars scheduled for Bklyn. but you could go to one in another borough. Phone 311 for schedule.

bkjl | 10 years and 4 months ago

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Thanks Arkady, I will look to attend one of the seminars for the other boroughs. bk1lnite, based on your feedback, it sounds like “Market Value” does not impact the tax and it’s “Effective Market Value” that I should be concerned with. Am I reading that correctly? GreenThinker, is that formula somewhere on the nyc finance site? And where did the 19.1570% rate come from? Thanks again!

GreenThinker | 10 years and 4 months ago

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http://webapps.nyc.gov:8084/CICS/fin1/find001I Look up your house, find the last bill, you’ll find everything you need.