Property tax bills are set to increase for New Yorkers under the De Blasio administration, in keeping with the steady rise in real estate prices.
The Wall Street Journal has reported a steady increase in commercial property tax bills under Mayor-elect De Blasio.
According to the data, in the fiscal year 2013, the average tax bill was $85,841. The average tax bill, without abatements, is set to jump to $111,023 in the fiscal year 2017, which ends June 30th.
The principal increases have been due to an upsurge in the assessments of property values, as well as increases in the tax rate for commercial properties.
Taxable assessed values have increased at an average rate 6.5% between fiscal years 2013 to 2017 under the incumbent Mayor De Blasio. By comparison, during Bloomberg’s tenure as mayor, taxable assessed values have increased 6%.
The average commercial property tax bill, according to city data, has increased by 29.3% since De Blasio took office.
According to the Post, the increase in property taxes is due to an upsurge in the real estate market. The market value of the city’s 1,060,814 properties increased to $988.3 billion at year end; the increase of 9% is higher than last year’s increase of 6.6%. The value of condos and co-ops, which are normally assessed at a higher rate than single-family homes, has risen by 10.86 percent.
Accordingly, the Department of Finance notes that there will be an $228 increase in the average property taxes for single-family homeowners, while the average property tax bill for co-ops is set to increase by an average of $448, while condo owners will see a $838 increase in their bills according to the DOF.
Naturally, Manhattan properties will see the greatest tax increase as they are valued at a rate higher than the rest of the city. Manhattan Co-op bills will increase by an average of $817, and condo owners will absorb an average increase of $1,150. Single family townhouses will see a tax increase of $2,131.
De Blasio’s Finance Commissioner, Jacques Jiha views the expansive growth of the real estate market as an opportunity for job creation and more positive things to come.
“The real-estate market remains robust in both sales, rentals, and leases with strong demand across the board...we are also seeing increased construction activity in the boroughs outside of Manhattan. The Bronx, in particular, has seen an increase of 46 percent in new construction, which is very good for job creation in that borough.”
In a clever turn of phrase, and despite the substantial increase in property tax bills, Mayor De Blasio emphasized that property taxes will remain at a constant rate in the upcoming fiscal year. According to Sally Goldberg of Politico New York, apart from the stagnant tax rate, however, assessments, tax abatements and exemptions, a state-mandated cap on increases and the city’s overall levy also determine the tax bill. Correspondingly, these factors have lead to the substantial increase in tax bills.
By: Kristina Stukalenko