The City Council has set new real estate tax rates that apply to the City Fiscal Year (FY) 2018 which began July 1, 2017 and will end June 30, 2018. There were small decreases in Class 2 and Class 4 properties, while there were increases in Class 1 and Class 3 properties (please see the table below).
While the tax rate for Class 2 properties will decline for FY 2018, real estate tax assessments for the same period will increase by a larger margin. Assessments for multi-family rental property in Class 2 will increase an average of 9.01% in the upcoming City Fiscal Year (based on the Final Assessment Role released on May 25, 2017). As a result, RSA members should not be optimistic that your actual real estate tax bill will decline. Even though rates decreased, bills were sent out at the old rate. The bills will be adjusted in November.
The ongoing increase in tax bills under Mayor Bill de Blasio is a continued trend that escalated under former Mayor Michael Bloomberg, which resulted in an approximately 170% increase in tax bills for RSA members.
Despite RSA’s advocacy, the de Blasio Administration blatantly ignores the fact that annual spikes in real estate taxes are incompatible with the severe under-compensation by the City Rent Guidelines Board (RGB). Although fuel costs have fluctuated under this Administration, large increases in property taxes have undoubtedly remained constant and have been the biggest cost burden for the City’s rental property owners.
RSA urges all property owners to examine their tax bills and assessment notices thoroughly and to take appropriate action by challenging inappropriate assessments.