If my condo is zoned live/work, is it better to be classified as tax class 2 (condo in elevator building) or tax class 4 (commercial)? The tax rate is lower for tax class 4, but are there other considerations? Also, has anyone filed a "Request for Review of Property Value" with the Dept. of Finance before? If so, how are you supposed to show that "Finance incorrectly estimated gross income" under... [more]
If my condo is zoned live/work, is it better to be classified as tax class 2 (condo in elevator building) or tax class 4 (commercial)? The tax rate is lower for tax class 4, but are there other considerations?
Also, has anyone filed a "Request for Review of Property Value" with the Dept. of Finance before? If so, how are you supposed to show that "Finance incorrectly estimated gross income" under Section III. My condo's market value per DoF is $582k but they're supposed to use hypothetical rental income to come up with this number. There's no way anyone would pay $50k a month to rent my apt... so how do they come up with these numbers?
Last, has anyone else see market values jump almost 20% this year? Is that normal? My assessed value is up over 15%.
Any info/advice for a first time apt owner with absolutely no experience in dealing with property taxes would be greatly appreciated!
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Response by wellheythere
over 15 years ago
Posts: 166
Member since: Dec 2008
Class 4 is probably better, but I don't think you would qualify as a live/work condo.
The market value is based on a capitalization of your hypothetical rent, so $582k represents an estimate of maybe $5k or so monthly rent.
Taxes are going up by astonishing amounts. It’s really bad.
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Response by Reno09
over 15 years ago
Posts: 45
Member since: Jan 2009
Wellheythere - Per chance, do you know where I can find the capitalization rate DoF uses? Also, other units in my building that are residential but zoned live/work are classified as tax class 4. They had been paying the lower tax rate til now which was great, but some of them saw increases in their market value of 50% or more, which seems just unreasonable. Are commercial properties not subject to the rate increase limitations that residential properties enjoy? Would this change your opinion about what class is "better"?
Class 4 is probably better, but I don't think you would qualify as a live/work condo.
The market value is based on a capitalization of your hypothetical rent, so $582k represents an estimate of maybe $5k or so monthly rent.
Taxes are going up by astonishing amounts. It’s really bad.
Wellheythere - Per chance, do you know where I can find the capitalization rate DoF uses? Also, other units in my building that are residential but zoned live/work are classified as tax class 4. They had been paying the lower tax rate til now which was great, but some of them saw increases in their market value of 50% or more, which seems just unreasonable. Are commercial properties not subject to the rate increase limitations that residential properties enjoy? Would this change your opinion about what class is "better"?