Commercial property tax bills have soared 30% since 2014

Assessments rose 6.5% a year under De Blasio administration

New York /
Jan.January 13, 2017 08:30 AM
 

Commercial property tax bills have skyrocketed under the De Blasio administration — with the average bill jumping 29.3 percent since 2014.

Driven by increases in property value assessments, the average tax bill is set to hit $111,023 in fiscal 2017, up from $85,841 in fiscal 2013, the last year under former Mayor Michael Bloomberg.

A spokeswoman for Mayor Bill de Blasio told the Wall Street Journal, “The property tax rate has not increased since Mayor de Blasio took office, and the mayor has been very clear he has no plans to change it.”

In fact, the city’s overall tax rate has remained flat at 12.283 percent under the current administration, and commercial property owners will face a property tax rate of 10.574 percent in fiscal 2017 — higher than 2013’s 10.288 percent but lower than last year’s 10.656 percent.

But rising assessments have driven tax bills higher. The total market value of taxable property topped $1 trillion in fiscal 2016.

Between fiscal years 2013 and 2017, assessed values increased at an average rate of 6.5 percent a year, city data show, compared to the 6 percent annual increase between 2002 and 2013.

As a result, the average tax bill for large rental properties jumped to $4,128 from $3,269 between 2013 and 2017, while tax bills for co-ops and condos rose to $7,644 from $6,086, according to the watchdog group Citizens Budget Commission. Meanwhile, commercial property owners pay the lion’s share of city property taxes, according to CBC’s vice president Maria Doulis. “Those costs are then passed down to businesses and consumers,” she said. [WSJ] – E.B. Solomont


Related Articles

arrow_forward_ios
The Empire State Building, GM Building, Zhang Xin and Boston Property's Owen Thomas
NYC’s most valuable building, and other nuggets from the tax roll
NYC’s most valuable building, and other nuggets from the tax roll
Gov. Kathy Hochul (Getty, iStock)
Hochul vetoes bill to close New York condo tax loophole
Hochul vetoes bill to close New York condo tax loophole
New York City mayor Eric Adams and 936 Lafayette Ave (Getty, Google Maps)
Here’s how much NYC mayor made from his Brooklyn home
Here’s how much NYC mayor made from his Brooklyn home
Michigan developer Scott Chappelle (Scott Chappelle, Illustration by The Real Deal; Getty)
Michigan developer sentenced to prison for tax evasion
Michigan developer sentenced to prison for tax evasion
From left: Boston Mayor Michelle Wu and South Boston Senator Nick Collins with Boston City Hall
Controversial transfer tax bill advances in Boston
Controversial transfer tax bill advances in Boston
34-24 Hunters Point Ave
City accuses its landlord of gaming property taxes
City accuses its landlord of gaming property taxes
Senator Chuck Schumer and Senator Joe Manchin (Illustration by Kevin Cifuentes for The Real Deal with Getty)
Manchin-Schumer deal closes real estate tax loophole
Manchin-Schumer deal closes real estate tax loophole
L+M’s Ron Moelis and 180 Broome Street (L+M, City Realty, iStock)
L+M accused of overcharging tenants at 421a building
L+M accused of overcharging tenants at 421a building
arrow_forward_ios

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

Loading...