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9	"New York City’s Property Tax" New York City’s Property Tax? The Facts Presentation for Panel Discussion Hosted by the Center for Rethinking Development Manhattan Institute by Martha E. Stark NYC Finance Commissioner Wednesday, April 22, 2009
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12	Core Beliefs About the Property Tax New York City Needs a Property Tax The Basis for the Property Tax Should Be Market Value Properties with the Same Market Value Should Pay the Same Tax The Property Tax System Should Be Easy for People to Understand, Fair and Predictable for Property Owners and Government Because Market Value and an Owner’s Income Do Not Always Increase at the Same Rate, it Would be Okay to Develop Programs that Provide Relief to Owners Based on Income and Residency but that Relief Should Not Alter Determination of Market Value
13	Estimating Market Value Three Methods Sales: Small Homes, Vacant Land Income: Apartment Buildings, Office Buildings, Cooperatives and Condominiums Cost: Utility and Specialty Property like Stadiums
14	The Assessment Rules Four Tax Classes Properties in Each Tax Class Must Be Assessed At a Uniform Assessment Ratio Small Homes at 6% of Market Value All Other Tax Classes at 45% of Market Value Assessments for Residential Properties with Less than 11 Units Are Capped at 6% or 8% Per Year and 20% or 30% Over 5 Years Assessment Changes for Residential Properties with More than 10 Units and Commercial Properties Must be Phased-In Over 5 Years Assessments are Not Capped or Phased-In for Owners Who Renovate Their Properties
15	How Are We Doing in NYC? As a Result of Assessment Caps, and Long Standing Inequities, Homeowners with Houses that Sell For the Same Amount Pay Very Different Taxes
16	How Are We Doing in NYC? Because Finance Must Value Cooperatives Based on Income from Rental Buildings, Our Market Values Bear No Relationship to Sales Prices
17	How Are We Doing in NYC? Because Finance Must Value Condominiums Based on Income from Rental Buildings, Our Market Values Bear No Relationship to Sales Prices
18	How Are We Doing in NYC? Cooperatives that Sell for the Same Price Pay Vastly Different Taxes
19	How Are We Doing in NYC? Condominiums that Sell for the Same Price Pay Vastly Different Taxes
20	How Are We Doing in NYC? Cooperatives, Condominiums, and Small Homes that Sell for the Same Price Pay Vastly Different Taxes
21	How Are We Doing in NYC? Owners of Rental Buildings Pay High Taxes
22	How Are We Doing in NYC? A Substantial Portion of the Rent That a Tenant Pays is for Property Taxes
23	How Are We Doing in NYC? A Renter Pays Significant Taxes Equivalent to the Value of a Small Home
24	How Are We Doing in NYC? Commercial and Utility Property Owners Currently Pay A Disproportionate Share of Property Taxes When Compared to Their Share of Market Value
25	How Are We Doing in NYC? Commercial and Utility Property Owners Pay A Disproportionate Share of Property Taxes When Compared to Their Share of Market Value if Cooperatives and Condominiums Were Valued Based on Sales Prices
26	How Are We Doing in NYC? The Property Tax Burden is High as a Percent of Income for Low-Income Owners
27	How Are We Doing in NYC? The Property Tax Burden as a Percent of Income is Even Higher for Senior Owners
28	Can the Property Tax Be Fixed? What Finance Has Done To Date Explained to Owners Exactly How Finance Estimated Market Value Published Guidelines Assessors Use to Value Property Provide Most Owners with Notice of Value Describing Method Finance Used to Value Property Provided Cooperative and Condominium Owners with Residential Rental Building Used for Comparable Rent Provide Condominium Owners with Information About How We Determined Value for Individual Unit Lowered Assessment Ratio for Small Homes to Reduce Inequities Sales Prices Public Tax Bills Easier to Understand Allowed More Owners to Pay Quarterly
29	Can the Property Tax Be Fixed? Important Questions to Consider Should NYC Have a Property Tax Should the Property Tax Be Based on Market Value or Something Else Should Houses Whether Vertical or Horizontal that Sell for the Same Price Pay the Same Taxes Is Affordable Residential Rental Property Important to the City What is the Appropriate Commercial Property Tax Burden to Maintain NYC’s Competitive Edge
30	Can the Property Tax Be Fixed? Important Questions to Consider Should People Who Renovate their Houses Pay Higher Taxes than Those Who Do Not Should Property Tax Revenue Increase When Market Value Increases and Decline When Market Values Decline Should We Lower Property Taxes for Homeowners with Lower Incomes Should We Lower Property Taxes for Homeowners if NYC is their Primary Residence
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