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Am I reading my property taxes correctly, making it near impossible to dispute effective property tax rates?
So Class 2 (mid - high rises) seem to be assessed at 45% of market value (using low assessed market value), and then is billed at a higher tax rate of billable value to make up for low "assessed value"...
easy enough, but the only way to dispute is to to contest the already low (pre 45%) market value which is more than offset than much higher tax rate (ie 13% tax rate vs CA's ballpark 1.25%)....
.....making it near impossible to use comps since you can only contest assessed market value and not tax rates..
that's like giving someone a hot dog with just a slice of beef, and a ton of ketchup but you can only dispute the overall hot dog's price by just acknowledging the excessive ketchup but not bringing up the miniscule beef... mmmmmmmmm
that's like buying a Hummer and bitching about the price of gasoline......
You got it, ss400k.
ss400k - my understanding is if you are assessed 900k (45% of 2m mv) and you think it should be 1m mv (therefore 450k assessment) you appeal to get 450k assessment.
The part that I don't know .. Hoping someone can answer ..
MV of class 2 brownstone (say 4-10 units) is based on the following formula:
Rental Income x Multiplier x 45% x Tax Rate
If I'm looking at a reo that has a multiplier of 12.5 and the tax rate is 13% then the effective tax rate is 73% of rent income?
Does anyone have clarity what the city considers "physical improvements"?
you are worried about you assessment, when the entire city is assessed in an inconsistent manner? my taxes are 3x what a similar condo is paying on the same block.
good luck with that.
ss400k - The fact that your property is assessed at seemingly below market value is irrelevant because every property type is similarly under-assessed. This is a game the State plays in order to discourage challenges. The Court of Appeals has ruled that the number that matters is the 'equalization ratio.' Lets say similar property types are assessed at 1/2X and you are assessed at 3/4X, then you would be over-assessed by 1/4. The point is to compare apples to apples. For most property types the equalization rate is 5X, for instance if your assessed at 1mm your property value should be 5mm. If you are using comps for a tax commission hearing, be advised the hearing judges will not listen to comps for most property types and are instead only interested in a 'cap rate' analysis which is a whole discussion in and of itself. This is a very esoteric area of law and I would recommend you hire a consultant or attorney to do your certiorari if you believe you are over-assessed. I can recommend a professional if you email me at Nagin0732@gmail.com.
thank you all, been a while since I've looked at a hard copy of tax - usually just pay quarterly online.. from what I remember I just saw the under-assessed value and never saw Market value or the ratio % anywhere on the bill.. I'll pull up once I have time, but I was pretty sure it was just 1 number, the under assessed which it makes it tough, as you say, to challenge the bill since you can't argue on tax rate, thanks.