City Releases FY2014 Property Tax Assessments
On Jan. 15, the city’s Department of Finance (DOF) released the tentative property assessment roll for fiscal year 2014, the tax year beginning July 1, 2013. According to the publication, the total market value of Class 2 properties, which consist primarily of cooperatives, condominiums, and rental apartment buildings, rose $9.4 billion, or 4.8 percent, to $204.6 billion citywide. Seventy-one percent of this increase, or $6.7 billion, is due to market forces, with the additional 29 percent coming from other changes, including new construction and physical improvements. State law prohibits DOF from using sales prices to value condos and co-op buildings, which must be valued as if they were rental buildings.
Net Operating Income (NOI) rose this year based on information reported to the DOF by owners. Additionally, new construction and renovations accounted for $1.5 billion in new Market Value, almost one fourth of the increase in rental Market Value this year.
The total Billable Assessed Value for Class 2 increased 6.6 percent to $59.6 billion. And Class 2 rentals saw a market value increase of 9.0 percent. Billable assessments for Class 2 rental properties will increase by a city-wide average of 8.18 percent, several points higher than the overall increase of 6.39 percent for all Class 2 properties, which include co-ops and condos in addition to rental buildings. The increase in assessments will bring the average tax bill for rentals to $3,574 per unit per year.