3 ms·
Why don't they just assess it accurately and lower the tax rate to a normal amount, making it more transparent and predictable? It seems owners are at the merc
by clamprecht 10y ago
Why don't they just assess it accurately and lower the tax rate to a normal amount, making it more transparent and predictable? It seems owners are at the mercy of the assessed value, which the city could crank up arbitrarily?
- soreal 10y agoWell, the assessment in NYC, unlike other places is actually pretty predictable and transparent, but not simple. If you are Class 1, it is 6% of FMV If you are Class 2+ it is 45% of FMV https://www1.nyc.gov/site/finance/taxes/definitions-of-property-assessment-terms.page https://www1.nyc.gov/site/finance/taxes/definitions-of-prope...
- bradleyjg 10y agoExcept the FMV of condo and condominium units aren't actually fair market values. Instead they are based on a model designed to figure out what income the building would produce if it were a rental building. And that's before taking abatements into account. The system overall is not very transparent.
- me2i81 10y agoRight, so you get an effective rate of 1.2% of FMV for class 1, 5.8% of FMV for class 2. So the rate is just a bit higher than California for class 1, which might explain why brownstones are so expensive in NYC relative to larger buildings.
- Finnucane 10y agoThe annual rise in assessments is limited by statute.