Values Down, Taxes Up
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…
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]
“Be glad you’re not in NJ where the level of fiscal irresponsibility has definitely effected property prices over the past 10 years.”
Dave, while NJ is generally known for higher property taxes I would be remiss if I didn’t mention that the taxes on my NJ home did NOT increase this year, nor had they in the past 7 years prior.
Just sayin’
The devil is in the details, Snark. The market is looking at the first derivatives for all these numbers when there’s been such a long and steep decline.
dibs, not sure that pull quote helps you…
Oh, thank heaven the drop is only 18.6% and not 19%! I was beginning to worry.
April 28 (Bloomberg) — The decline in home prices in 20
major U.S. cities slowed in February for the first time since 2007, amplifying signals that the market may be stabilizing.
The S&P/Case-Shiller index’s 18.6 percent decrease compares with a record 19 percent decline the month before. The gauge has fallen every month since January 2007, and year-over-year records began in 2001.
“We’re probably getting close to an inflection point,â€
said Michael Feroli, an economist at JPMorgan Chase & Co. in New York, who correctly forecast the drop in the index. Still, he said, “if we are indeed going to see a recovery in the second half,†the double-digit price drops will need to abate in the next few months.
Economists forecast the index would drop 18.7 percent from a year earlier, according to the median of 27 projections in a Bloomberg News survey. Estimates ranged from declines of 17 percent to 19.2 percent.
Compared with a month earlier, home prices fell 2.2 percent in February, after a 2.8 percent decline in January, today’s report showed.
On an annual basis, today’s figures showed the first
improvement in the rate of change since December 2005. The index started falling in January 2007.
to be fair to Jersey, they do not have the big NYC tax, no mortgage tax,… that said though Jersey ppty taxes are out of control – wouldn’t be surprised if they jack that up big again soon
There will be no massive tax increase or tax decrease, but thankfully this latest move has outraged enough people that there is a movement to start some gradual tax increases on homeowners and small tax relief for co-op owners.
‘morning ‘stoners! It’s Case-Killa Tuesday. February’s out. Here’s NY Metro’s #’s
DATE, INDEX READING, CHANGE FROM PEAK, YOY CHANGE
Jun-06 215.83 PEAK (+200% from ’91 trough)
Jul-06 215.25 -0.27% 7.70%
Aug-06 214.34 -0.69% 5.94%
Sep-06 214.08 -0.81% 4.52%
Oct-06 214.28 -0.72% 3.20%
Nov-06 214.23 -0.74% 1.87%
Dec-06 213.79 -0.95% 0.52%
Jan-07 212.78 -1.41% -0.34%
Feb-07 212.52 -1.53% -0.91%
Mar-07 212.39 -1.59% -0.91%
Apr-07 211.61 -1.96% -1.56%
May-07 210.51 -2.46% -2.35%
Jun-07 209.49 -2.94% -2.94%
Jul-07 208.36 -3.46% -3.20%
Aug-07 207.15 -4.02% -3.35%
Sep-07 206.35 -4.39% -3.61%
Oct-07 205.54 -4.77% -4.08%
Nov-07 204.58 -5.21% -4.50%
Dec-07 202.47 -6.19% -5.29%
Jan-08 200.78 -6.97% -5.64%
Feb-08 198.45 -8.05% -6.62%
Mar-08 196.53 -8.94% -7.47%
Apr-08 194.78 -9.75% -7.95%
May-08 193.88 -10.17% -7.90%
Jun-08 194.22 -10.01% -7.29%
Jul-08 193.64 -10.28% -7.06%
Aug-08 193.33 -10.42% -6.67%
Sep-08 191.32 -11.36% -7.28%
Oct-08 189.79 -12.07% -7.66%
Nov-08 186.81 -13.45% -8.69%
Dec-08 183.5 -14.98% -9.37%
Jan-09 181.00 -15.91% -9.85%
Feb-09 178.16 -16.88% -10.22% (CRASH ON FULL THROTTLE)
Taxes up? Awwww…that sucks!
***Bid half off peak comps***
Thanks for the info slopefarm, our share of property taxes isn’t as bad as my parents. It’s their biggest expense on their house in Jersey.