Former Chief Justice Warren Burger

From the May issue: 1970: Court rules in favor of church tax exemptions

The U.S. Supreme Court ruled 43 years ago this month that religious organizations were exempt from paying state property taxes. The landmark case rejected a lawsuit filed by a New York property owner who claimed that the state law exempting religious organizations from paying into the public coffers was unfair to other owners. [more]

Manhattan Beach

The city is raising taxes on homeowners in several parts of Brooklyn that were ravaged by Hurricane Sandy, the New York Post reported. Homeowners in high-end waterfront enclave Manhattan Beach, Coney Island, Sheepshead Bay, the Rockaways and parts of Staten Island, were shocked to hear the city’s claims that property values have shot up in the area, despite the storm’s effects. “This is totally insensitive and heartless,” Ira Zalcman, president of the Manhattan Beach Community Group, told the Post. … [more]

From the January issue: In the congressional and White House negotiations on tax reform — including the mortgage interest and property tax deductions — who has the crucial political advantage of counting documented public opinion on their side? Is it the real estate and building lobbies who argue that maintaining long-standing federal tax benefits are essential, given housing’s key role in job creation, household wealth and the fact that real estate is still in a fragile state coming out of the recession and mortgage bust? [more]

New York City property taxes, including on 69 homes damaged in Hurricane Sandy, are set to rise at a greater rate than property values, due to a peculiarity in the tax law, the Wall Street Journal reported. Though market values for single-family homes were up just over 1 percent in the past year, taxes will rise nearly 3.7 percent. This amounts to an increase of $153 to bring the average taxes to $4,324 for homeowners. This is due to a property-tax law quirk that allows increases in assessments due to rising real estate values to be phased in over years, with the period varying based on the type of property. The quirk softens the blow of escalating taxes in a rapidly rising market, but bumps taxes up even when the market loses steam. Condo owners, who saw their properties rise in value 2.4 percent over the year, will see a tax bump of 5.8 percent to an average of $7,499. And owners of co-ops will see their taxes rise 4.1 percent, even though the value of their properties only increased by 2.9 percent over the year…. [more]

New York State legislators want to reduce or eliminate local counties’ contribution to Medicaid in order to reduce property taxes levied to New Yorkers, the Albany Times Union reported. On average, 45 percent of local property taxes are sent to the health insurance program. Lawmakers believe that is contributing to the relatively high property taxes New Yorkers pay, and burdening families, and in turn, the economy.

In June, Governor Andrew Cuomo enacted a cap on property tax increases, and lawmakers are concerned that for counties to comply with the cap and fund their share of Medicaid, it would eliminate funding for crucial public services, including police units and infrastructure repairs.
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Governor Andrew Cuomo was making the rounds in New York City suburbs today, signing a statewide property tax cap legislation in Westchester and Nassau counties, his office announced. The new law, which has been kicked around the state government for more than 15 years, caps property tax increases at 2 percent, or the rate of inflation, whichever is less. Only a 60 percent vote in local communities override Cuomo’s legislation. “We are beginning a new era in which New York will no longer be the tax capital of the nation,” Cuomo said. – Adam Fusfeld… [more]

From left: 399 Park Avenue, the Standard Hotel, and the Time Warner Center (source: PropertyShark)

The owners of valuable Manhattan properties, including 399 Park Avenue, the Standard Hotel and the Time Warner Center got huge breaks in their property-tax assessments, according to the New York Post.

In 2009 and 2010, Boston Properties, which owns 399 Park Avenue, home to Citigroup, lowered the building’s assessment by $94 million and earned a $4.7 million tax break. Meanwhile, the Standard Hotel on Washington Street cut $12.5 million off its assessment value and the Time Warner Center’s assessment declined by $40.2 million. [Post]… [more]

While some state officials say they’re concerned that Governor Andrew Cuomo’s proposed property tax cap could lead to a budget shortfall, the proposal has garnered support from New York City homeowners, according to the New York Times. The median property tax in New York state reached $3,755 in 2009, compared to the national median of $1,917, while five counties — Westchester, Nassau, Suffolk, Rockland and Putnam — have median property taxes upwards of $7,200. Michael McCall, a marketing professor at Ithaca College, said that the tax cap may become increasingly popular among homeowners who see the current system as unfair. … [more]

Once a popular initiative among homeowners and tax protest groups, Governor Andrew Cuomo’s property tax cap program is now drawing ire, according to the New York Times. The proposal, which Cuomo has not yet formally submitted, would limit the annual growth of property taxes at 2 percent or the rate of inflation, whichever is lower. But while many fiscal conservatives once supported the plan, opposition is growing, and some say that the resulting deficit from the cap would have to be covered through unexpected fees…. [more]

New York property taxes could be on their way up statewide, according to the Wall Street Journal. While Governor-elect Andrew Cuomo has pledged to rein in tax increases, capping property tax hikes to 2 percent a year, local officials across New York want to boost property taxes before he enters office. This is due in large part to budget shortfalls, which have been felt nationwide as well; according to the Empire Center for New York State Policy, a conservative policy group, property taxes would need to climb 3.5 percent to account for other costs. Cuomo, meanwhile, remains stalwart in his tax stance…. [more]