The Real Deal New York

Reform New York City property taxes: OPINION

Rates should be based on real-world value rather than property classes, writes Crain's

October 02, 2014 02:40PM

property-tax

Property Taxes

The city should reform its overly complicated property tax system to be more transparent and better reflect real-world values, Crain’s opined in an editorial.

While the City Council has promised to convene a commission on reform, elected officials seldom tackle the issue because there is little political benefit to be had, according to the op-ed. Leaders only see the backlash that will ensue from those who would pay more under a more equitable system, and instead offer fixes like the proposed tax on pieds-a-terre.

At the heart of the problem are the city’s outdated tax classes, Crain’s says.

One- to three-family properties account for half of all property value, but owners only pony up 15 percent of tax payments, according to the newspaper. Meanwhile, rental units, co-ops and condos in account for less than a quarter of property value, yet landlords and owners cough up 36 percent of the city’s tax revenue. [Crain’s]Tom DiChristopher

  • Bullied and Damaged by Rent Re

    But if market prices are inflated by developers, how are small owners of rent regulated buildings not going to be damaged by such a proposal? How do we cover property taxes based on market prices when at least half of the rents are in the 190 to under 300 dollar range and the government claims that pwners are the enemy of affordable housing?

MENU