So i've been reading up on my tax issues, and have found that for condos (most of which are class 2 for tax purposes) the market value is based on the city's estimate of rental income potential, not sales value. Fine. To arrive at taxable value (assessed value), market values are multiplied by 45%, and then the 13% tax rate is applied. However, several of my friends that have bought recently (one... [more]
So i've been reading up on my tax issues, and have found that for condos (most of which are class 2 for tax purposes) the market value is based on the city's estimate of rental income potential, not sales value. Fine. To arrive at taxable value (assessed value), market values are multiplied by 45%, and then the 13% tax rate is applied.
However, several of my friends that have bought recently (one in an older bldg w no tax abatement, and one in a new development with a tax abatement) both have assessed values of about 8% of the stated market values. I checked the tax records online.
I then checked the tax records of a older construction condo in a similar neighborhood as these two "comps" and found that its assessed value was EXACTLY 45% of market value. So what gives? Why are some condo's being taxed based on a value that is 45% of mkt and some much much less?
And yes, i know that the assessed value can only increase by 8% per year or 30% in 5 years -- both of my comps have had assessed values that were FLAT or up 1% over the course of the past 5 years so that doesn't explain it either.
Anyone have any insight?
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