The Real Deal New York

Pricey nabes pay less in property taxes: report

September 30, 2013 08:23AM

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

  • Cheryl

    Property taxes rise when you make improvements.
    You have to file with the city and get permits.
    After you make the improvements they raise your property taxes
    In addition, if you sell a house that you purchased for 250k for 2.5 mil, the taxes are also going to rise based on that new market price.
    Each house is in a different phase of where their taxes should be. Each house is in different shape and have different value. Some are 1,2,3 or 4 family.
    Every house cannot be treated the same.