City releases tax assessment roll: owners have until March 1 to file appeal with tax commission

Real Estate Weekly, Jan 22, 2003

The Department of Finance's tentative property tax assessment roll for fiscal year 2004 shows that the total market value of the city's taxable real property rose by almost nine percent since last May, when finance released its final assessment roll for fiscal year 2003. Market values rose in each of the four classes of property and in all five boroughs.

"The increase in market value demonstrates that real estate remains a good investment in New York City," finance commissioner Martha E. Stark said. "The market for one-, two- and three-family homes is particularly strong, and the incomes that commercial property owners report continues to increase while favorable interest rates help offset rising expenses."

The tentative property tax assessment roll, published annually on Jan. 15, was produced after finance assessed more than 945,000 parcels of property. It coincides with a mailing to property owners describing their property's market value and their estimated tax for fiscal year 2004, which begins on July 1. The mailing includes a question-and-answer sheet describing how finance calculates tax liability, where taxpayers can call to answer common questions and how owners can appeal their tentative value.

On May 25, finance will publish a final property tax assessment roll. The final roll will account for changes to the tentative roll based on decisions made by the New York City Tax Commission, an independent city agency, as well as information finance gathers about abatements, exemptions and other adjustments to particular properties. Property owners must file an appeal with the Tax Commission by March 1, except for Class 1 property owners, who have until March 15 to file. In June, finance will use the final roll and new tax rates adopted by the City Council to generate property tax bills for fiscal year 2004.

The tentative roll, along with explanatory back-up material, is available on our web site at www.nyc.gov/finance. Members of the public who do not have access to the Internet may view the roll on public computer terminals available at our borough assessment offices. The entire tentative roll can be purchased on CD-ROM for $250 by visiting finance's property customer service office at 66 John St., 13th floor. A microfiche version is also available for $500.

When valuing properties for the tentative roll, finance took into account the effect of the recent property tax increase.

Highlights of the tentative roll include:

Market Value by Tax Class

* Class 1 properties, which include one-, two- and three family homes as well as some condominiums, rose by 13.6%, to a total of $232.9 billion. That's a slightly greater increase than the previous year, when the value of Class 1 properties grew by 13.5%. Average market value increased from $299,345 to $338,844. Sales information gathered by finance shows substantial growth as well. Median sales prices increased from $275,000 to $310,000.

* Class 2 properties, which include rental buildings and most cooperatives and condominiums, rose by 3.7%, to a total of $97.5 billion. This increase is attributable to growth in Manhattan and the Bronx; Class 2 properties in Brooklyn, Queens, and Staten Island actually decreased slightly. Average rental income jumped by 6.34% and expenses increased an average of 5.61%, but financing costs were down.

* Class 3 properties, which include utilities and special franchisees such as cable operators, increased by 1.2%, to a total of $15.4 billion.

* Class 4 properties, which include office buildings, hotels, factories, and garages and other commercial parcels, grew by 6%, to a total of $122.5 billion. Despite the city's economic difficulty, Class 4 values increased in every borough, ranging from 2.61% growth in Staten Island to 6.39% growth in Manhattan. Though vacancy rates are up, reported income and expenses increased and capitalization rates dropped slightly. For example, Class A office buildings in Manhattan saw their incomes rise an average of 11.9%, and expenses increase 7.9%. With the capitalization rate decreasing by .36%, the market value for Class A office buildings increased six percent.

Market Value by Borough

* Staten Island increased by 13%, led by a 14.5% jump in the value of Class 1 property. The borough's total value is $38.8 billion.

* The Bronx increased by 6.8%, including a 10% rise in the value of Class 1 property and a 5.4% jump in Class 4 property. The borough's total value is $31.7 billion.

* Queens increased by 11.3%, including a 14.6% increase in Class 1 value. Total value for the borough is $127.6 billion.

* Brooklyn increased by 10.7%, led by a 13.7% jump in Class 1 value. The borough's total value is $101.4 billion.

* Manhattan increased by 5.8%, including a 6.8% rise in Class 1 value. Total value for the borough is $168.8 billion.

The release of the fiscal 2004 tentative roll coincides with the appointment of a new assistant commissioner for the Property Division. Stark hired Linda Y. Yancey on Jan. 3. Yancey, who most recently served as the director of real property in Ontario County, NY, has vast experience as an assessor, a manager, and a teacher of property valuation, and she is well-respected by the professional appraising association.