The City Department of Finance (DOF) released the tentative assessment role on January 17th for the upcoming Fiscal Year (FY) 2018, which begins on July 1, 2017. Tax assessments across all tax classes increased by 8.45%, with Class 2 buildings (rentals, co-ops and condos) bearing the brunt of the burden with a 10.45% assessment increase.
Citywide, there is a tax assessment increase of 11.63% for larger Class 2 rental buildings, which would bring the average annual tax bill to $4,520 per apartment per year. Rental properties with 4-10 units will see a smaller citywide increase of 7.38%, raising the annual tax bill to $3,295 per unit.
In Manhattan, assessments for Class 2 rentals increased by 10.49%, increasing their annual tax bill to approximately $7,415 per unit. Four-to-10 family rentals in Manhattan saw a smaller increase of 6.50%, bringing the annual tax bill to $7,491 per unit.
Out of the five boroughs, Brooklyn had the highest assessment increase for larger rentals at an incredible 19.05%, raising the annual tax bill to $2,830 per unit. Four-to-10 unit rentals will see a much lower increase of 8.11%, raising the annual tax bill to $2,248 per unit.
In the Bronx, larger rentals will have an average assessment increase of 8.79%, which raises their annual tax bill to $1,836 per unit, while 4-10 family rentals in the Bronx showed a slightly lower increase of 8.21% and an annual tax bill of $2,159 per unit.
For larger rentals in Queens, there will be an increase of 11.78%, which raises the annual tax bill to $3,263 per unit. Four-to-10 unit rentals in Queens will see an increase of 7.76%, with annual tax bills of $2,826 per unit. Staten Island’s assessments for larger rental buildings increasedby 4.28%, raising annual tax bills to $2,307 per unit. The assessments for buildings with 4-10 units in Staten Island increased by 6.19% and annual tax bills will increase to approximately $2,723 per unit.
The FY 2018 tentative tax roll is subject to adjustment based on tax protests by rental property owners. RSA urges you to review your tentative assessments and file a protest with the City Tax Commission if the assessments are out of line with your neighboring properties or borough averages. Additionally, you may also consider a tax protest if your net operating income (NOI) did not increase but your assessment did increase.
DOF will also be conducting joint outreach sessions with the City Tax Commission in each borough throughout February to answer questions from the public about their assessments and offer guidance on what to do if they believe there is an error. The schedule and locations for these outreach sessions can be found on DOF’s website at http://on.nyc.gov/2iK5vAd.
For more information on how to challenge your property tax assessment, see page 3 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.