As expected, the City Department of Finance (DOF) released the tentative assessment roll on January 16th for the upcoming Fiscal Year (FY) 2019, which will begin on July 1, 2018. Tax assessments across all tax classes increased by 8.36%, with Class 2 buildings (rentals, co-ops and condos) once again skyrocketing with an 11.51% assessment increase.
Citywide, there is an astounding assessment increase of 14.17% for larger Class 2 rental buildings, which raises the average annual tax bill to $4,959 per apartment per year (a $561 increase from last year). Rental properties citywide with 4-10 units will increase 8.76%, which raises the annual tax bill to $3,508 per unit (a $267 increase from last year).
Out of the five boroughs, Brooklyn once again had the highest assessment increase for larger rentals at 22.52%, raising the annual tax bill to $3,217 per unit. Rentals with 4-10 units will see a drastically lower increase of 9.67%, which raises the annual tax bill to $2,402 per unit.
Queens saw the second largest assessment increase out of the boroughs, with an increase of 17.43% for larger rentals, raising the annual tax bill to $3,616 per unit. Buildings with 4-10 units in Queens will also see a large increase of 10.17%, with annual tax bills of $3,057 per unit.
In Manhattan, assessments for larger Class 2 rentals increased by 12.09%, increasing the annual tax bill to $8,127 per unit. Rentals with 4-10 units saw a smaller increase of 6.84%, raising the annual tax bill to $7,900 per unit.
Larger rental buildings in the Bronx will have an average assessment increase of 12.29%, a much larger increase than last year that raises the average annual tax bill to $2,000 per unit. Buildings with 4-10 units in the Bronx showed an even larger increase of 13.25%, raising the annual tax bill to $2,407 per unit. Compared to last year, Staten Island’s assessments for larger rental buildings also had a drastic increase of 10.85%, raising annual tax bills to $2,467 per unit. The assessments for buildings with 4-10 units in Staten Island increased by 5.93%, which raises annual tax bills to approximately $2,806 per unit.
Please keep in mind that the FY 2019 tentative tax roll is subject to adjustment based on tax protests by rental property owners. We encourage you to review your tentative assessments and file a protest with the City Tax Commission if the assessments are not consistent with neighboring properties or borough averages. Additionally, you should also consider a tax protest if your net operating income (NOI) did not increase but your assessment did increase.
For more information on how to begin the process of challenging your property tax assessment, see page 11 of the January edition of the RSA Reporter. The deadline for Class 1 properties to challenge their values is March 15th and the deadline for all other properties is March 1st.