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@martinjsxx If you post the rounded numbers here or email me at ralph@tidalforce.org I can give the exact details.
@wiseben1979 It is true that market values have gone up in some areas. But the law S7000A does not allow assessments to increase more that 20% over a 5 year period. Of course, we'd have to see the details.
My quarterly property tax bills:
June 2015 - $1504.54
June 2020 - $1994.89
Approximately a $500 increase in the quarterly bill in five years. $500 is about 33% of the 2015 bill.
This increase is not unique to me in my neighborhood. I just looked up my next door neighbor’s quarterly taxes for the same period:
June 2015 - $1458.30
June 2020 - $1999.32
Neither home had any major renovations. Housing prices have risen during the five year period though I haven’t tracked them.
It does appear that something might be incorrect there.
But it is easier to work with the annual assessed value. It is harder to work with quarterly values because the law and limit is on the annual value and the New York City fiscal year starts July 1st each year and NYC Finance modifies the tax rate during the year. But the truth is the tax rate has been fairly stable. see https://www1.nyc.gov/site/finance/ta...tax-rates.page and I will append to this post below.
It shows for 442 11 STREET in park slope the exact limitation due to S7000A
Notice the cycle ~6% ~6% ~6% ~1.3% and 0
Remember this is exponential growth because the assessment increase added to the value and in the next cycle it grows. That's why exponential growth starts slowly when the percent growth rate is small but eventually takes off like a jet plane.
It does appear that something might be incorrect there.
But it is easier to work with the annual assessed value. It is harder to work with quarterly values because the law and limit is on the annual value and the New York City fiscal year starts July 1st each year and NYC Finance modifies the tax rate during the year. But the truth is the tax rate has been fairly stable.
The property tax system is confusing. Annual assessed value has no clear meaning to the average person. What the taxpayer does understand is how much tax they have to pay and my property taxes (and that of the people on my block) went up 33% in the five years from June 2015 to June 2020. And that’s a fact whether you look at quarterly bills of $1500 that went to $2000, or annual bills that went from $6000 to $8000.
The property tax system is confusing. Annual assessed value has no clear meaning to the average person. What the taxpayer does understand is how much tax they have to pay and my property taxes (and that of the people on my block) went up 33% in the five years from June 2015 to June 2020. And that’s a fact whether you look at quarterly bills of $1500 that went to $2000, or annual bills that went from $6000 to $8000.
Only big corporations not limited by SALT deductions can withstand these types of increases. Hence the "conglomeratizaton" of NY Real Estate
The property tax system is confusing. Annual assessed value has no clear meaning to the average person. What the taxpayer does understand is how much tax they have to pay and my property taxes (and that of the people on my block) went up 33% in the five years from June 2015 to June 2020. And that’s a fact whether you look at quarterly bills of $1500 that went to $2000, or annual bills that went from $6000 to $8000.
It is something you can do yourself. No lawyers needed.
Clerical Errors:
Transcription errors
Computational errors
Failure to process partial exemption
Computer programming or inputting error resulting in value different than intended by
assessor
All other clerical errors defined in subdivision 2 of section 550 of the Real Property Law
The one you describe sounds like a computational or computer programming error.
The property tax system is confusing. Annual assessed value has no clear meaning to the average person. What the taxpayer does understand is how much tax they have to pay and my property taxes (and that of the people on my block) went up 33% in the five years from June 2015 to June 2020. And that’s a fact whether you look at quarterly bills of $1500 that went to $2000, or annual bills that went from $6000 to $8000.
It's a constant progressive tax that doesn't stop or go down unless you can prove to them each year that your property value went down. So why would someone want to buy and live here? It's an expensive property that can only be utilized for rentals.
It's a constant progressive tax that doesn't stop or go down unless you can prove to them each year that your property value went down. So why would someone want to buy and live here? It's an expensive property that can only be utilized for rentals.
It is even more difficult than that. Because of S7000A's assessment increase limit, there are many years of assessment increases that are pending. This means that even IF your market value does down, your assessed value will go up in most cases.
Take a real example,
class 1 property: one to three family home
YEAR 1:
assessed value = $10.000
market value= $1,000,000
according to NYC Finance this property should be assessed at 6% of market value but due to S7000A it is 1% of market value.
Let's say you can get the market value down to $500K (NYC Finance calculates this using "statistical models" which is a computer term for "do not ask how we did this"
your comments don't make sense. NYC has one of the lowest property tax rates in the tri state area. The property tax rate in the city is mostly lower than 1%, whereas in LI or Westchester, it is like 2% or more.
I bet post-covid, the value of single family will explode. The condo/coop market may be struggling, as a lot of people prefer space over better commuting
Quote:
Originally Posted by vision33r
It's a constant progressive tax that doesn't stop or go down unless you can prove to them each year that your property value went down. So why would someone want to buy and live here? It's an expensive property that can only be utilized for rentals.
So far we are seeing a bunch of nothing as far as foreclosures....in 2008 I found most foreclosures were no bargains..
They were either in poor shape or they went for fairly high rices at that time
Mathjak btw good to see you recovered. I have a question about (pre)foreclosures. In the only part of the Bronx I know about, a condo mega-complex, there used to be about 120 (pre)foreclosures (mostly pre-) at any particular time, prior to 2016. Then, during the first half of that year, the number of them gradually dropped to the half. In the past few years, the number of pre-foreclosures at any particular time has been generally around 35-40... but, in the past month that number dropped down to only 12 (the ones listed now are mostly larger units, 10 of them were placed in pre-foreclosure around the time the Covid situation started, and 2 have been in pre-foreclosure for over two years). The prices of these 12 pre-foreclosures are generally about the same as the regular listing prices. What do you think might be behind the disappearance of pre-foreclosures, and the fact that the remaining few are priced the same as regular sales? Is it the fact that mortgages are so favorable that everyone can pay them off without delinquency, or what?
your comments don't make sense. NYC has one of the lowest property tax rates in the tri state area. The property tax rate in the city is mostly lower than 1%, whereas in LI or Westchester, it is like 2% or more.
I bet post-covid, the value of single family will explode. The condo/coop market may be struggling, as a lot of people prefer space over better commuting
Remember that NYC has a city income tax in addition to the property tax.
Also it is true that in general the property tax is low, but if we look at the details, it is much lower for 1 to 3 family homes in general. And coops, condos, and rentals (without the full 421A exemption) pay much more.
And within class 1 (one to three family home) Park Slope pays the least while Queens, Bay Ridge, and Staten Island pay much more.
Why? you ask. Well, that's in the law S7000A. The assessed value in 1980 really matters. So if you build a new 1 family building today, it comes on the tax roll at 6% of market value. Let's say $1 Million is the market value, therefore $60,000 is the assessed value. But a building that was assessed at $1000 in 1980 with no "improvements" can only be assessed at $4,801.02 Even if the market value is $10Million That's a big difference.
One interesting thing about New York City is you can buy the low assessment. When you buy there is no re-assessment to full assessment such as California. So you can buy the low property tax bill. This is one of the reasons that Park Slope buildings keep rising in market value.
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