Tuesday, September 16, 2014

What is Assessed Value? Or why does your property tax bill go UP when the property tax rate goes DOWN?

We realize that this defies even the most elementary of mathematics, but if the property tax rate goes down, why does the amount you pay go up?

Our representatives are very proud to say that the Class 1 property tax rate went down, what they do not say (and may not even be aware) is for most property owners the amount you will pay will go up, NOT down. Some may say that "oh, this is inevitable" But it is not.

Howard Jarvis used to say that if we are being badly served by politicians, it is our fault. We voted them in and we can vote them out, he would remind voters.
Some may not believe their individual vote is important, but by working in concert with other voters, we will make the difference between a future of debt and desperation, and one of prosperity and opportunity. source: http://www.hjta.org/vote
It is very simple, some of the premises of the New York City budgeting process are:
  • "all numbers must increase by 4% to 6% to show improvement and growth"
  • "All New York City agencies want to show improvement and growth"
  • "New York City budget is made up of numbers"
  • a growth of less that 4% to 6%, is actually a cut in the agencies view.
Imagine that if the growth is 3% then the agency considers that a 1% to 3% cut.  This is a troubling trend and mindset that should be re-considered.

We highly recommend that every citizen watch the budget process in our New York City Council.  Watch every minute of it.

It is very clear that some of the council members may not understand the assessment process.   

The assessment process was passed in 1981 see this report  and see this newspaper

Overriding the Veto. On December 3, 1981 the Legislature met to vote on the override. The measure passed easily in the Senate. In the Assembly, Minority Leader James Emery, an upstate Republican who was running for Governor, pressured some of his colleagues to abandon their initial opposition to the bill and support the override. Although the Minority Leader himself did not vote for the override, he succeeded in convincing others. When Assemblyman George Winner of Elmira first walked into the chamber that night he declared his opposition to the override. Later, he said, “Into the tank,” and switched his earlier vote, as did 13 Republican colleagues, and joined the Assembly’s Democratic majority in overriding the Governor’s veto by three votes. At 9:55 p.m. the road to adopting S7000A had been completed.
This law which is referred to as S7000A passed by only three votes to override the veto of then Governor Hugh Carey.

It is time now, 33 years later, for a New York City and State property tax modernization act.

If you want to see how much you are over or under paying in your property tax when compared to the average see  http://tax.tidalforce.org/nyc

Consider Proposition 13 in California.  We are taught that California is not well run.  But we ask why?
  • California voters can bypass the legislator and pass and amend laws.
  • California voters vote on important issues.  Consider our elections in New York State where we have no choice at all. In fact, in New York City the mayor and legislature can bypass a referendum of the people.  See this well written report where Bloomberg overrode the people and the council voted for it's own pay raise and term extension.  Surely, this type of action should be unconstitutional. 
  • California property tax assessment is based on your purchase price of your home.  This means it is under your control.  NOT under the control of arbitrary laws that was decided more than 30 years ago that most assessments have to go up 4% to 6% every year.
Ask yourself who benefits from the constant increase of 4% to 6%?

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