Tax Assessment Hearing Presentation

8/7/2019 Tax Assessment Hearing Presentation

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NYC Property Tax System

FY 2012 Tentative Assessment Roll Overview


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How we get to a tax billMarket Value

Assessment Ratio

Exemptions

Tax Rate

Abatements

Tax Bill

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Market vs. Assessed Value Market value is what your property is worthaccording to the Department of Finance tax

purposes.

o For Class 2 and Class 4 properties, MarketValue has no relevance to sales prices.

Assessed Value is the percentage of marketvalue that we apply the tax rate to.

o Caps and phase-ins prevent large year-to-yearincreases in tax liabilities, but cause assessedvalues to rise even as market values fall.

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How are the Four Property Tax

Classes Treated?Class Description Market Value

Assessment

RatioCaps on Increases

1

Primarily 1-, 2- and 3-

family homes

Based on

Comparable Sales

6% of MV Capped at 6% over 1 year or 20% over 5

years

2

Other residential (e.g.,

rentals, co-ops, & condos

Based on an Income

Approach

45% of MV 10 units or less; capped at 8% over 1 year

or 30% over 5 years

More than 10 units; phased in over 5 years

3

Utilities Based on Cost

Approach

45% of MV Increases not capped

4

Commerical and all other

properties

Based on an income

Approach

45% of MV Phased-in over 5 years

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Tax Rates

Each class pays a share of the tax levy. Class Share changes are capped at 5% per year.

Average

Rate

Class 1 Tax

Rate

Class 2 Tax

Rate

Class 3 Tax

Rate

Class 4 Tax

Rate

12.283% 17.364% 13.353% 12.631% 10.312%

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Assessment Profiles by Class

Data Source: FY12 Tentative Assessment RollDollar values in Billions

Although Class 1 has most of the value in New York City, it

pays much less in taxes than other property types.

Tax

Class

Property Type Parcels Total Residential

Units

MV

(in billions)

% of Total

MV

Taxable AV

(in billions)

% of Total

Taxable AV

Tax

Levy

% of Total

1 Small Homes 702,292 1,091,135 $390.34 47.4% $15.35 10.1% $2.67 13.9%

2 Rentals > 10 unit 24,022 999,609 $70.57 8.6% $23.74 14.8% $3.17 16.5%2 Co-ops > 10 unit 4,873 364,752 $40.50 4.9% $14.99 9.4% $2.00 10.4%2 Condos > 10 unit 147,871 147,871 $28.34 3.4% $8.10 5.0% $1.08 5.6%2 Other 65,088 341,436 $56.93 6.9% $7.99 5.1% $1.07 5.5%

3 Utility 305 N/A $25.34 3.1% $11.08 7.5% $1.40 7.3%4 Other Commerci 92,268 N/A $208.09 25% $76.07 48.0% $7.84 40.8%Total 1,036,719 2,944,803 $823.48 100.00% $157.32 100.00% $19.23 100.00%

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Exemptions & Abatements

Exemptions are

applied to assessedvalues before tax ratesare applied

Abatements applied

after taxes arecalculated

In FY 2011 theDepartment of Finance

administered 292,683separate exemptions,515,832 abatements.

Source: FY11 DOF Tax Expenditure Report

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Staten Island and Other Borough Information

Changes by Borough

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1-3 Family Home

Changes by Borough

# of

Parcels % of Total

FY12 MV

(in billions)

FY11 MV

(in billions)

FY12 less FY11

MV

(in billions)

Mean

Change in

MV

%

Change

Decline from FY11 or No Change

Manhattan 1,509 0.2% $5.01 $5.72 -$0.71 -$471,485 -12.4%Bronx 35,916 5.7% $14.64 $16.39 -$1.75 -$48,731 -10.7%Brooklyn 104,289 16.4% $64.12 $71.51 -$7.39 -$70,870 -10.3%Queens 138,461 21.8% $63.68 $70.62 -$6.93 -$50,077 -9.8%Staten Island 55,991 8.8% $22.90 $25.12 -$2.22 -$39,675 -8.8%

Total 336,166 53.0% $170.35 $189.36 -$19.01 -$56,543 -10.0%

Manhattan 3,643 0.6% $16.94 $13.82 $3.12 $855,799 22.6%Bronx 26,423 4.2% $12.54 $11.17 $1.37 $51,839 12.3%Brooklyn 87,304 13.8% $60.87 $54.12 $6.75 $77,316 12.5%Queens 130,778 20.6% $79.81 $70.79 $9.03 $69,021 12.8%Staten Island 49,711 7.8% $24.33 $21.68 $2.65 $53,305 12.2%

Total 297,859 47.0% $194.49 $171.58 $22.91 $76,928 13.4%

Total 634,025 100% $364.84 $360.93 $3.91 $6,161 1.1%

Increase from FY11

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# of Parcels % of

Total

FY12 MV

(in millions)

FY11 MV

(in millions)

FY12 less FY11 MV

(in millions)

Mean Change in MV % Change

Manhattan 1,917 0.3% $7,160.7 $7,139.5 $21.2 $11,071 0.3%Bronx 30,476 4.8% $13,393.9 $13,397.4 ($3.5) ($115) 0.0%Brooklyn 95,081 15.0% $60,968.4 $61,175.4 ($207.0) ($2,177) -0.3%Queens 128,850 20.3% $67,841.2 $67,658.5 $182.7 $1,418 0.3%Staten Island 57,279 9.0% $25,339.5 $25,344.5 ($5.0) ($88) 0.0%Total 313,603 49.5% $174,703.5 $174,715.2 ($11.7) ($37) 0.0%

Manhattan 1,146 0.2% $3,705.2 $4,343.2 ($638.0) ($556,736) -14.7%

Bronx 18,508 2.9% $7,031.4 $8,497.5 ($1,466.1) ($79,217) -17.3%Brooklyn 50,918 8.0% $29,202.6 $35,258.7 ($6,056.1) ($118,938) -17.2%Queens 65,690 10.4% $27,943.6 $33,623.0 ($5,679.4) ($86,458) -16.9%Staten Island 22,839 3.6% $8,606.5 $10,283.9 ($1,677.4) ($73,445) -16.3%Total 159,101 25.1% $76,489.2 $92,006.3 ($15,517.1) ($97,530) -16.9%

Manhattan 2,089 0.3% $11,077.1 $8,054.1 $3,023.0 $1,447,105 37.5%Bronx 13,355 2.1% $6,760.5 $5,671.4 $1,089.2 $81,555 19.2%

Brooklyn 45,594 7.2% $34,817.4 $29,195.2 $5,622.2 $123,310 19.3%Queens 74,699 11.8% $47,714.0 $40,124.5 $7,589.5 $101,601 18.9%Staten Island 25,584 4.0% $13,278.8 $11,167.9 $2,110.9 $82,508 18.9%Total 161,321 25.4% $113,647.8 $94,213.1 $19,434.8 $120,473 20.6%

Total 634,025 100% $364,840.6 $360,934.6 $3,906.0 $6,161 1.1%

LESS THAN 10 PERCENT CHANGE FROM FY 11

GREATER THAN 10 PERCENT DECLINE FROM FY11

GREATER THAN 10 PERCENT GROWTH FROM FY11

1-3 Family Home

Percent Changes by Borough

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Challenging Your Assessment Class 1 property owners have until March 15

to challenge their assessment with the Tax

Commission

All other property owners must file theirapplication by March 1

The Tax Commission and Department ofFinance will be hosting a joint outreachsession for property owners at 350 St. MarksPlace, Room 400, on Thursday, February 17at 10:00 am

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Tax Assessment Hearing Presentation

Documents

Transcript of Tax Assessment Hearing Presentation