DOF Publishes FY 2018 Tentative Property Tax Assessment Roll
According to new data from the city’s Department of Finance (DOF), the total tentative market value for all assessed properties in New York City increased to $1.157 trillion this year, an 8.74 percent increase from 2016, when the total crossed $1 trillion for the first time.
The DOF estimates that 87 percent of the increase reflects market forces and the rest is a result of new construction and apportionments. “The real estate market continues to be a vibrant part of New York City’s economy with Brooklyn driving construction and market value. We urge property owners to properly review their Notice of Property Value, which they will be receiving shortly,” states DOF Commissioner Jacques Jiha.
The total market value for Class 2 properties, consisting primarily of cooperatives, condominiums, and rental apartment buildings, rose by $26.6 billion or 10.4 percent to $283.4 billion citywide. About 74 percent of the increase, or $19.7 billion, is due to market forces, with the remainder coming from other changes, such as new construction and physical improvement, which accounts for 26 percent of the increase. State law prohibits the DOF from using sales prices to value condos and co-op buildings, which must be valued as if they were rental buildings. The total assessed value for Class 2 properties increased 10.5 percent to $82 billion. For Tax Class 2, Brooklyn has the greatest increase in market value, up 16.55 percent and the greatest increase in assessed value, up 15.71 percent.
Class 2 rentals saw a market value increase of 10.8 percent--7.2 percentage points due to market forces and 3.6 percentage points the result of construction and other physical activities. The new construction and renovations account for $3.5 billion in new market value. Class 2 cooperatives and condos saw a market value increase of 6.3 percent and 8.7 percent, respectively. The total assessed value increases for Class 2 cooperatives and condos are 6.9 percent and 12.3 percent, respectively. For Class 2 rentals, Brooklyn has the greatest increase in market value, totaling 17.73 percent and the greatest increase in assessed value, up 19.05 percent.
With the release of the tentative assessment roll, property owners will now have an opportunity to examine and challenge the values on the roll before the final assessment roll is finalized in May. DOF assessors assign market values to all properties in the city annually. All properties are valued by law according to the property’s condition on the taxable status date of Jan. 5.
Owners who want to challenge their assessed values can do so with the New York City Tax Commission, an independent city agency. The deadline for all properties except Class 1 to challenge their values is March 1. Forms are available on the Tax Commission’s website, http://www.nyc.gov/html/taxcomm.
Owners who believe that the DOF has incorrect property information, such as the wrong number of units or square footage, may file a Request to Update with the DOF. The form is posted at www.nyc.gov/finance. Filing a Request to Update with the DOF, however, is not a substitute for challenging the assessed value with the Tax Commission. The final assessment roll will include any changes based on the decisions made by the New York City Tax Commission, as well as new information the DOF gathers about abatements, exemptions, and other adjustments. In June, the DOF will use the final roll to generate property tax bills for fiscal year 2018.