NYC Property Taxes To Rise After City Hikes Real Estate Valuations
The New York City Department of Finance's assessments of property values jumped from last fiscal year, driving up landlords' obligations as the city's tax rate remains unchanged.
The total market value of New York City property went up by 8.2% for the fiscal year 2023 to reach $1.4T, Crain’s New York Business reports. That marks a 2.1% increase from the pre-pandemic fiscal year of 2021.
Specifically, the market value for Class 2 properties, which includes rental apartments, jumped 8.2% from the fiscal year 2022, though it remains 0.2% lower than pre-pandemic. Class 4 properties, which included office, retail and hotels, saw assessments jump 11.7% year-over-year, though they are still 7.7% lower than pre-pandemic levels.
Even as assessments were slashed last year by more than 20% in some cases, property owners said at the time the reductions weren't enough relief and that they would fight the city with greater force than ever before.
“Jacking up the property taxes for affordable apartment buildings in low-income neighborhoods is immoral. We need to be providing the people in these communities more help, not more costs that will lead to higher rents or worse housing,” Small Property Owners of New York President Ann Korchak said in a statement regarding the assessments. “Mayor Eric Adams needs to clean up this mess that de Blasio left him.”
Landlord group the Community Housing Improvement Program said that before the pandemic, around 30% of a stabilized building’s rent collection would be spent on property taxes. In 2020, CHIP said that proportion increased to 40%.
The group said some members are reporting assessment jumps of more than 40%. Rents are also increasing across the city. In December, median rent went up 21% year-over-year to reach almost $3,200 in Manhattan.
