NYC Publishes Tax Assessment Roll
By Richard J. Koreto
Posted on 2/2/12

Every January, the New York City Department of Finance mails a Notice of Property Value (NOPV) to each city property owner. This notice contains information about the property's market and assessed value, which is used to calculate property taxes.

Property owners—and the CPAs who serve them—can avoid unpleasant surprises each year by reviewing the department's property tax site and estimating taxable value, the actual tax bill and the exemptions and abatements owners are entitled to.

The department says it multiples the taxable value by the tax rate to come up with the actual property tax and lists its step-by-step process on its website for calculating taxable value. The city divides all properties into four classes, each of which has its own formula and rules:

• Class 1: Includes most residential property of up to three units (family homes and small stores or offices with one or two apartments attached), and most condominiums that are not more than three stories.
• Class 2: Includes all other property that is primarily residential, such as cooperatives and condominiums.
• Class 3: Includes utility property.
• Class 4: Includes all commercial and industrial property, such as office and factory buildings.

For example, for Class 1 properties, the assessed value cannot increase more than 6 percent each year or more than 20 percent in five years. For Class 2 properties with 10 units or less, the limits are 8 percent each year and 30 percent over five years.

The next step is to calculate the actual bill, although the department says this will always be an estimate—the exact bill may vary due to annual regulatory changes. Owners wanting to make sure they get all their tax breaks should note the department also lists the many property tax reduction programs available.

The department also posts examples, such as how much tax an owner will pay on a Class 1 Property, worth $450,000, with a senior citizen (SCHE) exemption: