New York City Department of Finance has released 2018/19 residential and commercial property tax rates.
Residential Class 1 property tax rates (1-3 family homes and condominiums of 3 stories or less) have increased 2.61% from $20.385/ $100 to $20.919/$100.
Residential Class 2 property tax rates for apartments, cooperatives, and condominiums of 4 stories and higher have decreased .84% from $12.719 to $12.612. Class 4 property tax rates (for all other commercial properties) have remarkably remained the same at $10.514% from last year to this year. While it may appear that New York City’s budget has remained essentially frozen, Class 1 assessment increases ( typically 6% per year ) have kept that class tax rate fairly close to last year’s rate. Most homeowners in the five Boroughs will be paying close to 8% more than last year
While commercial rates for both Class 2 and Class 4 remain the same or are dropping, annual tax bills will be increasing due to assessment increases. Class 2 assessments increase by 8% per year for 4-10 unit buildings, with the taxable values of the balance of multi-family buildings being phased-in and increasing every year. Class 4 taxable assessments are always increasing due to the same phase-in.
Assessments need to be challenged every year to roll-back tax increases or reduce further taxable increases. New York City Tax Commission accepts Applications for Correction from January 2 to March 1.
Michael Schroder, Esq. is an expert in tax certiorari law and the co-founder of the law firm Schroder & Strom, LLP. He and his business partner, Karen Strom, have been grieving residential and commercial real estate taxes on Long Island in Nassau County and beyond, since 2000.