The city’s property tax rates may have decreased, but don’t be fooled: Many New York City homeowners will still pay more in taxes this year.
This year, the city’s tax rate will decrease for one- two- and three-family homes, as well as for co-ops, condominiums, and rentals. In fact, commercial and industrial property are the only classes that will see their tax rate rise — by approximately 3.5 percent — for the 2014 fiscal year, Capital New York reported.
But tax rates are just one part of an equation for determining how much city taxpayers will pay. This year, a hike in overall assessed value, coupled with a budget that relies on more money from the real estate levy than last year, means that many New Yorkers will indeed pay more on their property tax bills.
“The tax rates, I don’t want to say are meaningless, but it all has to do with assessment,” James Nelson, a partner at Massey Knakal Realty Services, told Capital.
Since the overall value of property rose for the fiscal year, the city allotted a budget for collection of $22.6 billion, which is a more than 6 percent increase from the $21.3 billion allotted in the 2014 fiscal year.
Since assessed values are based on a percentage of market value, property tax rates for homeowners likely only decreased because the market rates of commercial property grew at a faster rate than residential real estate. [Capital New York] — Sasha von Oldershausen