Will NYC Property Tax Reform Raise Your Taxes?

Nick at Hauseit (https://www.hauseit.com) reveals whether proposed NYC property tax reform will raise your taxes. Save money when selling real estate in NYC with Hauseit: https://www.hauseit.com/agent-assisted-fsbo/

Read Hauseit's blog post on NYC's proposed property tax system overhaul: https://www.hauseit.com/nyc-property-tax-reform/

Learn how to save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. How it works: https://www.hauseit.com/how-it-works/
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NYC property tax reform is on the horizon. We think it's not a matter of if but rather when these changes will occur. Let’s talk about how we got to where we are today.

The current property tax system in NYC was enacted in 1981. It has been unchanged for approximately four decades. Many critics have assailed the current system as being quite
unfavorable in terms of its treatment of condos and co-ops compared to one to three family homes.

In other words, people with big townhouses in Brownstown Brooklyn for example are paying a lot less in terms of the percentage of property tax to market value versus somebody with a condo or a co-op apartment in the city.

Politicians have been making noise about this for years, but quite unsurprisingly nothing has
actually happened up until 2018. In 2018, the mayor formed a commission that was tasked with exploring ways to reform the current system. In December of 2021, that commission actually released a final report which is available online which outlines some of their recommendations for overhauling the system.

So will your property taxes go up when NYC overhauls the system? The answer depends on your property type. Let's think a little bit about how they've changed the underlying system and then it will tell us whether your taxes may go up. Currently, NYC has a bunch of really confusing tax classes, so one apartment could be in a different tax class from another apartment in a slightly bigger building and then townhouses of course are treated differently. It's really complicated and confusing.

The commission basically suggests that they tear up all the existing confusing tax
classes for small residential properties and create one tax class. Then they propose calculating property taxes based on the percentage of actual market value and the current tax rate proposed is 0.814%.

Therefore, if you currently own a property that is worth $1 million or more in NYC and
you're paying less than around $8,000/year, your taxes will likely be going up under this commission's proposal.
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Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. Learn how it works: https://www.hauseit.com/how-it-works/

Hauseit LLC, Licensed Real Estate Broker
Tel: +1 (888) 494-8258
Email: team@hauseit.com
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