Our Mayor Bill DeBlasio (original name Warren Wilhelm) speaks of "a tale of two cities", but there is another tale. The tale of the unequal tax assessment of real property in New York City. We recommend that you read A History of the Real Property Tax and Equalization in the State of New York for a discussion of the history of this situation.
This is a preliminary analysis of the New York City Assessment of Property Value over the Market Value. The ratio of the these two values seems to cap at 6%. There seems to be a lot of tradition and black magic in these traditions.
Our study compares Park Slope Brooklyn NY and Bed Stuy Brooklyn NY. Yellow is the lowest tax assessment / market value ratio (near 1%) and Red is the highest ratio (near 6%)
Our current mayor Bill DeBlasio has one of the lowest tax assessment / market value ratios at 1.4%
The logic seems to be if you buy a home and pay millions of dollars for it above the previous purchase price, that fact seems to not affect your assessed value by much because there is a law that caps increases to 6% and 20% for a 5 year period. See http://public.leginfo.state.ny.us/LAWSSEAF.cgi?QUERYTYPE=LAWS+&QUERYDATA=$$RPT1805$$@TXRPT01805+&LIST=LAW+&BROWSER=BROWSER+&TOKEN=42288330+&TARGET=VIEW
But if you improve your home legally then the full value of the improvement is added to your market value and also proportionally added to your assessed value. Which in turn increases your tax payment proportionately.
This seems to be a counter incentive. We punish people that invest in their homes with real improvements and do nothing or little to those that speculate or buy homes at high or inflated prices. Why???
We should encourage people to renovate their homes. There are programs to abate taxes for improvements but these are limited programs and you have to do that before you start renovation. In some cases, you buy a renovated home from a developer and you were not involved in the renovation, yet the tax increase will be applied and it appears you cannot file for an abatement after the fact.
Comparing some of our mayor's assessment ratios. Bloomberg comes in at a middle value of 3.61% and an assessed value of $615K on a $17 Million home.
OWNER: BLOOMBERG, MICHAEL R
NEW_FV_T: 17025000.0
TN_AVT_A: 615444.0
accessed_value_to_market_ value_percentage: 3. 6149427312775333
location: 17 EAST 79 STREET,new york,ny 10075
label:
While our current mayor Deblasio assessed ratio is a low 1.4% on an assessed value of $16.7K on a $1.15 Million home.
OWNER: DEBLASIO, BILL
NEW_FV_T: 1158000.0
TN_AVT_A: 16719.0
accessed_value_to_market_ value_percentage: 1. 443782383419689
location: 384 11 STREET,brooklyn,ny 11215
label:
For live data see: Live Map
This is a preliminary analysis of the New York City Assessment of Property Value over the Market Value. The ratio of the these two values seems to cap at 6%. There seems to be a lot of tradition and black magic in these traditions.
Our study compares Park Slope Brooklyn NY and Bed Stuy Brooklyn NY. Yellow is the lowest tax assessment / market value ratio (near 1%) and Red is the highest ratio (near 6%)
Our current mayor Bill DeBlasio has one of the lowest tax assessment / market value ratios at 1.4%
The logic seems to be if you buy a home and pay millions of dollars for it above the previous purchase price, that fact seems to not affect your assessed value by much because there is a law that caps increases to 6% and 20% for a 5 year period. See http://public.leginfo.state.ny.us/LAWSSEAF.cgi?QUERYTYPE=LAWS+&QUERYDATA=$$RPT1805$$@TXRPT01805+&LIST=LAW+&BROWSER=BROWSER+&TOKEN=42288330+&TARGET=VIEW
But if you improve your home legally then the full value of the improvement is added to your market value and also proportionally added to your assessed value. Which in turn increases your tax payment proportionately.
This seems to be a counter incentive. We punish people that invest in their homes with real improvements and do nothing or little to those that speculate or buy homes at high or inflated prices. Why???
We should encourage people to renovate their homes. There are programs to abate taxes for improvements but these are limited programs and you have to do that before you start renovation. In some cases, you buy a renovated home from a developer and you were not involved in the renovation, yet the tax increase will be applied and it appears you cannot file for an abatement after the fact.
Comparing some of our mayor's assessment ratios. Bloomberg comes in at a middle value of 3.61% and an assessed value of $615K on a $17 Million home.
OWNER: BLOOMBERG, MICHAEL R
NEW_FV_T: 17025000.0
TN_AVT_A: 615444.0
accessed_value_to_market_
location: 17 EAST 79 STREET,new york,ny 10075
label:
While our current mayor Deblasio assessed ratio is a low 1.4% on an assessed value of $16.7K on a $1.15 Million home.
OWNER: DEBLASIO, BILL
NEW_FV_T: 1158000.0
TN_AVT_A: 16719.0
accessed_value_to_market_
location: 384 11 STREET,brooklyn,ny 11215
label:
Unequal Tax Assessment - Red is high, Yellow is low Mayor DeBlasio has one of the lowest tax assessment ratios |
For live data see: Live Map
More interesting areas, our Governor Cuomo is proposing capping property tax increases at 2% (even lower than our New York City 6%) But it excludes New York City (see http://www.empirecenter.org/Documents/PDF/Property%20Tax%20Cap%20Guide.pdf)
Also our Governor Cuomo is calling for more tax reform here http://www.governor.ny.gov/assets/documents/commission_report.pdf