Pricey nabes pay less in property taxes: report

TRD New York /
Sep.September 30, 2013 08:23 AM

Homeowners in upscale neighborhoods such as Brooklyn Heights and the Upper East Side Side often pay less in property taxes than their counterparts in not-so-affluent areas such as East New York and Canarsie, a new review by the Independent Budget Office shows.

Property taxes account for $18.7 billion annually — about 40 percent of all New York City’s revenue. Tax rates are determined by assigning an “estimated market value” to a property and then applying a uniform six percent assessment to that value, according to the New York Daily News.

But the IBO review of records in 135 city neighborhoods — performed at the request of the Daily News — found the city overvalued residential property in 28 of the poorest neighborhoods while undervaluing residences in pricier neighborhoods.

In East New York/Cypress Hills, for example, the median sale price for residential properties is $249,000 according to the report, but the city’s Finance Department pegs the median estimated market value at $394,000, the review showed.

But in Park Slope, the city’s median estimated market value was $1.29 million, per the Finance Department, while the actual median sales price for that neighborhood was $1.42 million, according to the recent investigation.

“The very first thing in any system is you have to get the market value right,” a former staffer for the Finance Department told the newspaper. “If you can’t get the market value right, the rest of the assessment system is compromised.” [NYDN]Hiten Samtani


Related Articles

arrow_forward_ios
(Getty)

“On the verge of a tragedy:” The stark numbers of a pandemic-hit NYC

“On the verge of a tragedy:” The stark numbers of a pandemic-hit NYC
Donald Trump with 1290 Sixth Avenue in Manhattan and 555 California Street in San Francisco (Getty, Google Maps)

Trump took nearly $100M out of Vornado partnership in 2013

Trump took nearly $100M out of Vornado partnership in 2013
President Donald Trump (Getty; iStock; Trump Organization)

5 real estate takeaways from 20 years of Trump’s taxes

5 real estate takeaways from 20 years of Trump’s taxes
New York Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins (Getty)

New York lawmakers push for new millionaires’ tax

New York lawmakers push for new millionaires’ tax
Senate Minority Leader Chuck Schumer and Senate Majority Leader Mitch McConnell (Schumer by Tasos Katopodis/Getty Images; McConnell by Ting Shen/Xinhua via Getty)

Schumer v. McConnell on SALT: Who’s gonna give?

Schumer v. McConnell on SALT: Who’s gonna give?
Joe Biden (Getty)

Biden’s $775B “caring economy” plan to be funded by RE taxes

Biden’s $775B “caring economy” plan to be funded by RE taxes
Photo illustration of Governor Andrew Cuomo (Credit: Cuomo by Stefani Reynolds/Getty Images; iStock)

Escaping New York? Tax man is right behind you

Escaping New York? Tax man is right behind you
New York City Comptroller Scott Stringer (Credit: Andrew Burton/Getty Images, iStock)

Coronavirus will cost city billions in tax revenue: comptroller

Coronavirus will cost city billions in tax revenue: comptroller
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...