Friday, July 11, 2014

A modest proposal for New York City Class 1 Property Equity $400 Million overpaid

To check if you are overpaying your New York City Property Tax (currently for Class 1 properties only) see this application and this application (initial release/older version)

Using the published data from  our New York City Department Of Finance (http://www.nyc.gov/html/dof/html/property/assessment.shtml) we will propose a plan for a revenue neutral change to the assessed values across all Class 1 properties to make the assessment ratio equal as required by our NY State Constitution.

Currently we have assessment ratios for Class 1 properties that varies from less than 1% to 6%.  This is obviously unequal.  1 is not equal to 6. :(  This is obviously true. :) The reason your property is assessed at a higher value than another property with a much higher market value is an arbitrary quirk of how the real property tax law was written See this report

The plan to is to modify the current assessment ratio from its current wide range to one value.  The value is taken from the current data in order to make the change "revenue neutral".  The new value for the assessment ratio is 4.6%

Therefore, those Class 1 properties assessed at higher than 4.6% will be lowered to 4.6% and those below 4.6% will be raised to 4.6%.  4.6 IS equal to 4.6.  This is also obviously true. :)

The shift of property tax payments will be $400 Million.

In other words, there are  470,633 property owners who, as a group, are overpaying $400 Million and there are  191,047 property owners who, as a group, are underpaying that same $400 Million.

For details see: