Market Value —Valuing Your Property
The Department of Finance determines a market value for your tax class 1 property using statistical analysis that incorporates data such as the recent selling prices of similar properties in your neighborhood. Similar properties are those that are close in size, style, and age to yours.
Assessed Value — Assessing Your Property
Your home’s assessed value is a percentage of its market value. State law limits how much the assessed value of a class 1 property in New York City can increase. Your assessed value cannot rise more than 6% in one year or 20% over five years, no matter how quickly the market value of your home increases, unless you make a physical change to the property, such as an addition or renovation. Due to these caps, most class 1 properties are assessed at less than 6%.
As a result of the caps, you may find that your assessed value continues to increase even as your market value decreases. That is because it can take years for the assessed value to “catch up” to the market value. The table below shows an example of a property whose assessed value increased even as the market value decreased.
Why has your property’s assessed value changed?
Your assessed value can change for a number of reasons:
• Your property’s market value has changed.
• You made a physical change to the home, such as an addition or renovation, and these physical changes are not subject to the annual or five-year caps on increases to your assessed value for that year.
• You lost a tax exemption or abatement, or its value was reduced.
• Your assessed value is catching up to prior changes in market value, as in the table below.
Exemptions — Reducing Your Property Tax
The City of New York offers tax breaks known as exemptions to seniors, veterans, clergy members, people with disabilities, and others. If you are granted an exemption, it is subtracted from the assessed value of your home, reducing your taxable value. (An exemption differs from an abatement, a type of tax break that reduces your tax due after the tax has been calculated.) Your June property tax bill shows the exemptions you will receive for the tax year beginning July 1.
Your Annual Property Tax Bill — Class 1NYC-Class-1-Residential-Property-Taxes-Guide
Click here to access the Class 1 Residential Property tax Guide directly: https://blocksandlots.com/wp-content/uploads/2020/01/NYC-Class-1-Residential-Property-Taxes-Guide.pdf