New Yorkers May See Taxes Rise as Real Estate Slows
- Jan 16, 2008
New York–Real estate value is no longer growing at the brisk pace of recent years–and city spending may decrease as a result, The New York Times reported Wednesday.Last year, values increased 18 percent. But when the city conducts its annual valuation of all property in May, its early estimations place value at only 1.44 percent more than the last assessment.Long insulated from the national housing decline, New York appears to now be feeling some of its effects. According to data from the tentative annual assessment roll–which basically determines taxes for the fiscal year beginning in July–decreasing values of small homes outside Manhattan are dragging the overall market down, the Times said.City budget officials declined to comment on the property numbers, but City Council Finance Committee chairman David I. Weprin told the Times that the lower assessments could prompt a tax rate increase or halt the $400 primary residence homeowner tax rebate.The real estate decline could cost New York $100 million in revenue, according to George Sweeting, deputy director of the city’s Independent Budget Office. Ending the property tax rebate would add $250 million to reserves.Under current rates, condo and co-op apartment owners could see tax bills rise an average of 6.8 percent, or $178.72, the Times said.