Opinion: New tax assessments hit New York City

AP Photo/Adam Hunger.

By Joel R. Marcus

Special to the Eagle

Benjamin Franklin once said that the only thing certain in this world is “death and taxes.” However, while death is a one-time event, taxes and tax increases in New York City are an annual occurrence. 

Seeming to echo the New York State motto “Excelsior”, which means “Ever Upward” New York City has increased its property tax assessments once again this time by 4.7 percent, this reflects their estimate of Full Market Value of all real estate at $1,377,000,000. That’s One Trillion Three Hundred and Seventy-Seven Million! This is more than a $60 Billion increase from last year’s values.

Taxable assessments are up even higher at 6.7% due to scheduled phase-ins of prior increases, bringing the total tax levy to over $28 Billion; and New York City will spend all of that amount in only one year. That’s a lot of statistics and numbers – but it adds up to more taxes on every business and household.

One issue with this property tax levy, is that it is too high and stifles businesses that are struggling, causing stores to be empty and people to relocate to other cities and states. In fact, New York State lost over 180,000 residents last year. 

Well, there are a few things you can do about it. Contact your elected officials and press them to trim the City’s budget and limit spending growth. They could also file an assessment challenge with the Tax Commission this year.

All these assessments can be appealed. On January 15, New York City released its new tax assessments for the 2020/21 fiscal tax year. These new assessments are called “tentative” because they do not become final and billed until July 1, 2020. From January 15 to March 15, assessments for Tax Class 2 (residential apartment buildings, cooperatives and condominiums), Tax Class 3 (utility) and Tax Class 4 (all other commercial, office, hotel and retail) may be appealed by filing an application with the New York City Tax Commission. Tax Class 1, which includes 1, 2- and 3-unit family homes have until March 15  to file.

In Queens, North Shore Towers saw an 11.67 percent assessment increase with other large apartment complexes going up about 4 percent. Surprisingly, the Marriott Courtyard Hotel, which has been closed for two years saw yet another increase in its assessment (See the Queens Daily Eagle November 2019 article on that tax appeal trial by the author’s law firm pending decision in the Queen’s Supreme Court).

For cooperatives and condominiums, this is an especially painful tax when considering that average sales prices have stagnated or even declined. For rental apartment building owners, the dual burden of new rent regulations and taxes may push them to the brink.

The non-stop increase in tax bills can only be remedied by keeping the City’s budget from ballooning as it has been for years. Unlike a personal budget where expenses need to match salary and income, the City makes its budget and then taxes are increased as much as needed to pay for it. And you, John Q. Public, gets the bill.

Joel R. Marcus is a senior partner at Marcus & Pollack LLP. He can be reached at taxappeal@marcuspollack.com.