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NYC RESIDENTIAL
class one
homes
family
one two
three
David. M. Frankel
WHERE DO YOUR
A iform gencies Un
Other Agenc ie
29%
21%
nsportation, h (tra s
, Corrections) ion at
34%
In New York City, property tax represented 43% of all the city tax dollars collected in scal year 2012, which ended on June 30, 2012. This chart shows how all city tax dollars were spent.
16%
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DETERMINE MARKET VALUE We value your Class 1 property based on prices of similar properties that sold in your neighborhood.
DETERMINE ASSESSED VALUE Market Value level of assessment (modied by caps on assessment increases)
= Assessed Value
= Taxable Value
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Tax classes each pay a different share of property tax in New York City. Each classs portion of property tax is called its class share. NY State law sets limits on how much class shares can rise annually. The City Council can request that the State Legislature lower these increases. Once they are set for the year, class shares are then used to determine the tax rates for each class. Even though Class 1 properties market value is about 47.7% of the market value of all taxable property in the City, Class 1 taxpayers pay about 15% of the Citys property tax.
FISCAL YEAR 2013 CLASS 1 CLASS 2 CLASS 3 CLASS 4
CLASS
CLASS
12.477% 3.11% 7%
Note: These values are approximate. Fiscal Year 2013 is July 1, 2012 - June 30, 2013.
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Market Value Assessed Value if increases were not capped Assessed Value with Caps on Increases
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Exemptions What They Are, Who Can Apply, What You Can Save.
STAR (School Tax Relief) Basic STAR
Available to all owners of houses, co-ops and condos with annual adjusted gross income of $500,000 or less as long as at least one owner uses the property as his or her primary residence. No age requirement.
Want to Apply for an Exemption? Learn More About Abatements? See Your Propertys Exemptions and Abatements? Visit nyc.gov/nance
Enhanced STAR
Available to seniors (age 65 or over) with annual adjusted gross incomes of $79,050 or less. To apply for either Basic or Enhanced STAR complete and submit an Exemption Application for Owners.
ELIGIBILITY BENEFIT
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Reduces Assessed Value by 5 50%, depending on income. Tax savings vary based on the level of benet and Assessed Value.
Reduces Assessed Value by 5 50%, depending on income. Tax savings vary based on the level of benet and Assessed Value.
Abatements
The exemption eligibility requirements and benets can change by law. Please visit nyc.gov/nance for the most up to date information about exemptions.
Veterans Exemption
Available to veterans of US military who served during designated periods of conict, their spouses, widows/ widowers of eligible veterans, and Gold Star parents (e.g., parents of soldiers killed in combat). To apply, complete and submit Exemption Application for Owners.
Clergy Exemption
Available to members of the clergy whose principal work is ministerial, retired members of the clergy, and widows/widowers of clergy members. The clergy member, not the religious organization, must own home. To apply, complete and submit Exemption Application for Owners
ELIGIBILITY
Level of benet depends on whether the veteran served in a combat area and/or was disabled during service. Tax savings vary based on the level of benet and assessed value.
BENEFIT
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Market Value Finance values your property based on three years of comparable sales using statistical modeling. Assessed Value Your assessed value is taken from whichever is lower: your market value times 6%, or the capped amount. Exemption Value The value of exemptions that are deducted from the assessed value Taxable Value The taxable value is the assessed value minus the exemption value. Tax Rate The Citys approved property tax rate for class 1 property; applied to the taxable value to calculate your property tax. Your property tax rate isnt nalized until your class share is determined each year. Annual Property Tax If you have any abatements, they are applied and subtracted from the amount of your taxes to determine your nal property tax bill.
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ANNUAL PROPERTY TAX = {(ASSESSED VALUE MINUS EXEMPTIONS) (X) TAX RATE} MINUS ABATEMENTS
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ANNUAL PROPERTY TAX: Taxable Value X Tax Rate* - Abatements 13,938 X 18.2050% = $2,537
*Tax rate for 2011/12 tax year; rates vary from year to year
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Market Value We value your Class 1 property based on prices of similar properties that sold in your neighborhood using statistical modeling. Effective Market Value If your assessed value has been capped as set out in State law (rather than at 6% of market value), then you will nd an effective market value on your NOPV. The effective market value takes into account your capped assessed value. It is calculated by dividing your assessed value (based on caps) by 6%. This value is signicant if you challenge your propertys value because you must prove that your property is worth less than its effective market value to win your dispute. Assessed Value Your assessed value is taken from whichever is lower: your market value times 6%, or the capped amount set by New York State law. For more detailed information on Assessed Value, please go to page 5 for more information.
Property Description Basic property information: ownership, description, classication and BBL Property Identication: BBL Each property in New York City is identied by a set of three numbers called the Borough, Block, and Lot (BBL). BBLs are used to identify real estate for taxes, zoning, construction, and other purposes. Finance uses these numbers on most property correspondence. Be sure to have your BBL on hand when you contact Finance it will help resolve your issue more quickly. The Borough number is always rst: 1 = Manhattan 2 = Bronx 3 = Brooklyn The Block number is second It can be up to 5 digits.
4 = Queens 5 = Staten Island
Exemptions Your exemptions are listed here. Exemptions reduce your Assessed Value before your taxes are calculated.
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your year in
Finance mails out your Notice of Property Value. MARCH 15: the deadline to dispute your propertys value with the NYC Tax Commission. MARCH 15: the deadline to apply for personal exemptions. Finance releases the nal assessment roll and generates property tax bills for the next tax year that begins on July 1. You receive your rst property tax bill for the tax year that begins the next month, July.
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JAN
FEB
MAR
APRIL
MAY
JUNE
property taxes
A new tax year starts; you're taxed at the previous year's tax rate.
The City Council votes on the tax rates and the Mayor signs off on them. They are nalized in November when class shares are determined. Because were almost halfway through the tax year from when these rates apply, your taxes for the rst part of the year are re-calculated at the new rate.
JULY
AUG
SEPT
OCT
NOV
DEC
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