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The tri-state area is far more complicated than you seem to make it out to be. For one you can't make sweeping generalizations like "property taxes in NYC ... a
by cletus 9y ago
The tri-state area is far more complicated than you seem to make it out to be. For one you can't make sweeping generalizations like "property taxes in NYC ... are drastically lower than the suburbs".
What are "the suburbs" here? Westchester? Nassau? Which parts of Long Island? Which parts of New Jersey? Each has different characteristics. Likewise, NYC property taxes have characteristics all of their own.
NJ is known as a high property tax state. That's true but you need to understand why. Why is because so many NJ residents work in NYC and pay NYS income taxes rather than NJS income taxes.
As for the high-tax NY suburbs like Westchester... it's complicated but the tl;dr version is school spending, inefficiencies and state-mandated defined benefit pension plans [1].
As a general rule though, NY state single family home ("SFH") owners pay disproportionately low property tax rates compared to those in multi-dwelling units ("MDUs") ie apartments, which is NY state's (fortunately tamer) equivalent of CA's Prop 13. Upstate SFH dwellers have voted themselves tax breaks in the form of caps on property taxes. Apartment dwellers however have to property taxes based on Assessed Rental Value ("ARV").
A $3m brownstone in Prospect Park might have property taxes of ~$700/month. A $3m condo in Midtown Manhattan will likely pay $1300-2000/month in property taxes (so ignoring common charges). And that's AFTER the condo and coop tax abatement, which is a "temporary" decrease that's been continually passed by the NYS legislature every few years continually since 1996. Without that, those apartment rates would be up to 50% higher.
But it gets worse. Those who pay the lowest taxes of all (as a portion of their property values) are... foreign billionaires who buy ultra-luxury condos on 57th Street, CPW, Park Avenue and 5th Avenue.
I applaud your effort to correct the GP's misconceptions but you've also made some sweeping generalizations yourself.
[1] http://www.westchestermagazine.com/Westchester-Magazine/June-2010/Why-Are-Our-Taxes-So-High/ http://www.westchestermagazine.com/Westchester-Magazine/June...