Brooklyn Brownstoners Pay Lowest Property Taxes
Homeowners in Brownstone Brooklyn can find plenty of things to gripe about, but property taxes ain’t one of them. Along with members of other affluent neighborhoods around the city, Brooklyn brownstoners benefit from assessment caps that have kept taxes low while real estate prices have skyrocketed. A recent study by the city’s Independent Budget Office…
Homeowners in Brownstone Brooklyn can find plenty of things to gripe about, but property taxes ain’t one of them. Along with members of other affluent neighborhoods around the city, Brooklyn brownstoners benefit from assessment caps that have kept taxes low while real estate prices have skyrocketed. A recent study by the city’s Independent Budget Office found that owners of houses in Park Slope and Carroll Gardens have the lowest effective tax rate in the five boroughs. While one-, two- and three-family homes account for 41 percent of the market value of all city property, they generate less than 14 percent of property tax revenues. Rental buildings, on the other hand, get hit much harder than houses, co-ops or condos. When we renovated our house, the property taxes doubled from about $2,400 to about $4,800, or about $1 per square foot per year. How does that compare to what you’re paying?
Tax Breaks Seem to Favor Affluent Areas [NY Times]
Large Share of Property Taxes Borne by Rentals [NY Sun]
Photo from Dahl’s House
My taxes have doubled in Victorian Flatbush on a single family home in the last 6 years – I don’t think services have increased six-fold, or that service costs have increased 500%!
While less than many suburbs, lower taxes have always been a part of the nyc real estate equation. Due in part to huge number of real estate units, and due in part to factoring in less-than-burb quality service, especially schools. However it seems to me that the current administration has been raising taxes much faster than previous ones.
The way the system works now, as property values rise, so too do taxes, often placing an insurmountable burden on current owners who may have purchased years earlier at much lower prices. Wouldn’t it be more reasonable and better for the neighborhoods, to base real estate taxes on the sale price and collect any windfalls at the point of transfer?
Really 10:12? Please tell me why an artificially high sale price (b/c of artifically low property taxes) for a wealthy (sorry but if you own a 1M+ Brownstone your wealthy) Brownstone owner is any different then an artifically high sale price for a tax abatted condo.
Heck at least with the Condo in 10+ years the city will be reaping in huge amounts of property taxes, while on the Brownstone it will still be pitfully small.
Its not even a question of raising taxes on people who live in a house they couldnt ‘now’ afford. Were talking about property taxes after a million dollar+ sale.
Currently the house that I’m renovating will be modified from a one to a three family. Should I expect a significant tax hike. These improvements are needed in order to make the house liveable and to add rental income needed to afford the property. I agree with that there are no incentives if you’ll be punished for renovating or improving your home. How much of a % will my taxes rise? I’m currently paying $2,500 and if it rises much more, I will not be able to afford the house anymore.
I suspect that brownstoner’s taxes went up because the cap doesn’t apply to an increase in value due to improvements…only to increases due to rise in market value of the property absent improvements. My understanding (correct me if I’m wrong) is that the improvements that the city tracks are those that require the filing of building permits. I purchased many years ago, and I’m at .96 per sq ft. for a 2940 sq ft 2 family house. I’ve contemplated putting on an extension, but have decided not to, in order to avoid the tax hike that would accompany it.
You get reassessed when you file your renovation with DOB because they assume the value of your property has gone up with the improvements you’ve made. Doesn’t exactly provide the right incentive to people to improve the housing stock, does it!
It is the 421a tax breaks that are cheating the city of tax income not small brooklyn homeowners. Contrary to stereotype, not all “brownstoners” are wealthy. Some of us are the ones who brick by brick are the reason their neighborhoods are stable and desirable today. In lots of neighborhoods, small homes ARE the affordable housing. 421a is an outrageous scam and has created very little affordable housing for all the hype about how great it is. In some neighborhoods, more affordable housing is being destroyed as condos are built next to small properties damaging them, sometimes deliberately. I do think commercial property taxes on small industrial buildings are often too high giving those property owners in mixed neighborhoods real incentive to sell out to developers and depriving residents of employment.
Brownstoner!!!! ARRGGH!!
I don’t know if I should be bothered that you raised the issue, or revel in delight. Low property tax, YES! But wealthy???? I’m far from it. While my 3 family Brownstone may be valued over $750K, doesn’t indicate that I should be able to afford twice the tax rate I’m paying. Brownstoner, please tell us why your taxes doubled!!!
Now, I’m scared to death. I’ve just completed the renovation phase on my place and cringe at the thought of taxes going up. Low taxes is the primary reason for my buying in Brownstone Brooklyn… That and the ability to have 2 tenants subsidize my mortgage.
Where else could I afford 3400 Sqft of living space?
It will be funny when the same Brownstone owners who decry the 412a tax breaks (15yrs max-btw) all start screaming bloody murder when people start pushing for higher taxes on their brownstones.
I love living in the city, but if I have to pay the City Income tax (you don’t have that in the burbs), high property tax (like the burbs) and pay private school tution (some of the City schools are ok but most are not), I just couldn’t swing it.