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]
DeLepp,
The logic is that, for decades, the portions of the City where small homeowners comprised the majority of the electorate controlled the City Council (think Queens, outer Brooklyn, SI). Co-ops and condos did not make up a large portion of the City electroate outside Manhattan until recently. Large building landlords don’t care because they pass the taxes through as rent. Now, the system is just entrenched. Good luck getting the City to pass a massive tax increase on small homeowners in this climate and good luck getting a massive tax cut for co-opers and condomaniacs in our fiscal situation. Two minor points of consolation — 1. any price you paid for a coop, condo or house reflected in part the tax burden; 2. Property taxes for everyone are much higher in the burbs and elsewhere because the City gets a large part of its revenues through sales and income taxes. So the overall local tax burden between house owners and co-opers is not as disparate as the proeprty tax alone makes it look.
What, you put the “Ass” in “Assignment.” 🙂
Ahh, Consumer Confidence. The most meaningless of all the meaningless numbers they trot out.
Talk to real people. They ain’t confident.
http://www.nyc.gov/html/dof/html/property/property_val_valuation.shtml
Here is your Homework Assignment…
The What
Someday this war is gonna end…
The April Consumer Confidence number was expected to come in at 29.7 and came in at 39.2.
instant true-up will be imppossible but can’t see why a gradual true-up isn’t possible. The only issue is too many owners with “regular” priced houses would get hammered too – unless the city specifically picks on the expensive trendy hoods.
DIBS = welfare queen.
this is new york city. there’s probably only one thing that everyone can agree on: it’s “the other guy” who isn’t paying his fair share.
Our Coop real estate taxes just got re-assessed at 300% than what they were. The three bedroom apts will be on the hook for $3.2K a year. I would like to have more info as to why 1-3 family houses are only assessed at 6% of their fair market value vs other properties. What’s the logic?