The NYC Advisory Commission on Property tax Reform reached consensus on 10 initial recommendations:
- The Commission recommends moving coops, condominiums and rental buildings with up to 10 units into a new residential class along with 1-3 family homes. The property tax system would continue to consist of four classes of property: residential, large rentals, utilities, and commercial.
- The Commission recommends using a sales-based methodology to value all properties in the residential class.
- The Commission recommends assessing every property in the residential class at its full market value.
- The Commission recommends that annual market value changes in the new residential class be phased in over five years at a rate of 20% per year, and that Assessed Value Growth Caps should be eliminated.
- The Commission recommends creating a partial homestead exemption for primary resident owners with income below a certain threshold. The exemption would be available to all eligible primary resident owners in the residential class and would replace the current Coop-Condo Tax Abatement.
- The Commission recommends creating a circuit breaker within the property tax system to lower the property tax burden on low-income primary resident owners, based on the ratio of property tax paid to income.
- The Commission recommends replacing the current class share system with a system that prioritizes predictable and transparent tax rates for property owners. The new system would freeze the relationship of tax rates among the tax classes for five-year periods, after which time the City would conduct a mandated study to analyze if adjustments need to be made to maintain consistency in the share of taxes relative to fair market value borne by each tax class.
- The Commission recommends that current valuation methods should be maintained for properties not in the new residential class (rental buildings with more than 10 units, utilities, and commercial).
- The Commission recommends a gradual transition to the new system for current owners, with an immediate transition into the new system whenever a property in the new residential class is sold.
- The Commission recommends instituting comprehensive reviews of the property tax system every 10 years.
Link to NYC Advisory Commission on Property Tax Reform: Preliminary Report: https://blocksandlots.com/wp-content/uploads/2020/01/NYC-Advisory-Commission-on-Property-Tax-Reform-Preliminary-Report.pdf