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]
The new condos with tax breaks won’t have them in X number of years and then they’ll get whalloped.
Ringo — Same here. And all the new condos have tax breaks so we are paying for them too. It is a very unfair system but all these brownstoners are never going to agree to pay their fair share of the tax roll.
The system is unfair. I’d rather learn to fix it than to work it.
What….are you trying to say somethin?? Come on, spit it out intelligently.
The system is what it is; tybur6, learn to work it. The year a property was actually built has a lot to do with it.
I live in a medium-sized co-op apartment building in brooklyn heights. Real estate taxes have become our single greatest line item, surpassing super’s salary and heating costs.
If you were to divide our tax bill up among the units, each unit pays more than any single-family townhouses on our block. I’m talking 2 and 3-bedroom untis paying more $5mm homes. Nuts.
Apartment buildings def no NOT have a favorable tax rate.
“Can you imagine what would happen to the value of your typical house if its properties went up seven- or eight-fold?”
Umm… yeah… it would be called EQUITY!!! And perhaps the absurd prices would come back to earth. Co-ops, condos and multi-unit rental properties wouldn’t be carrying the burden of the city’s coffers.
You own a 2000+ sq ft single-family home, but you pay the same or less than a 1-1/2 bedroom condo? Seems sustainable, equitable, fair, etc. Right?
“Be glad you’re not in NJ where the level of fiscal irresponsibility has definitely effected property prices over the past 10 years.”
Isn’t a little early to smoke crack Dave??? Maybe the explosion of the Mutant Asset Bubble has “effected” housing prices.
The What (6 Months)
Someday this war is gonna end…
not so sure coops don’t have a very favorable tax break….
As I remember they are assessed at a value as if bldg were a
rental (and probably having rent regulation)….which is much lower than market value of each apt totaled.