January 15, 2019
Today, Jacques Jiha, Commissioner of the New York City Department of Finance, announced the publication of the tentative property assessment roll for fiscal year 2020, which shows the total market value of all New York City properties for the upcoming year at about $1.323 trillion, an increase of $72 billion, or 5.8 percent from the 2019 Fiscal Year. About 83.3 percent of the increase reflects market forces and the rest is mainly indicative of new construction and apportionments. Citywide assessed values rose by 8.3 percent to $259.7 billion for fiscal year 2020. Market and assessed values are adjusted each fiscal year during the time period between the issuance of the tentative and final rolls. These adjustments are due to Tax Commission actions, changes by notice, progress assessments, and other factors.
The roll reflects total citywide construction activity at around $13.8 billion in new Market Value. In particular, rental apartments account for $4.9 billion or 35.5 percent of citywide construction activity. Collectively, Manhattan, Brooklyn and Queens make up 95.6 percent of all construction activity for rental apartments. In Brooklyn and Queens, market value growth due to construction exceeds market force growth for rentals.
“This year’s roll confirms steady construction activity in New York City, which is not just concentrated in Manhattan,” says Jiha “We are seeing construction in all of the boroughs, particularly Staten Island showing the highest year-over-year percentage increase in construction for commercial properties.”
Overall, market values for Class 1 properties, which consist primarily of 1-, 2-, and 3-family homes, rose by 6.2 percent citywide to $631.2 billion. Of this increase, 98.6 percent is attributable to increasing sales prices across the City for Class 1 homes. Assessed values for Class 1 properties rose by 4.3 percent to $21 billion. For Tax Class 1, Staten Island has the greatest increase in market value, at 10.3 percent, while Manhattan has the greatest increase in assessed value, up 4.9 percent.
The total market value for Class 2 properties, consisting primarily of cooperatives, condominiums and rental apartment buildings, rose by $20.3 billion or 6.6 percent to $329.9 billion citywide. About 64.5 percent of the increase, or $13.1 billion, is due to market forces, with the remainder coming from other factors, such as new construction and physical improvement, which accounts for 33.9 percent of the increase. The total assessed value for Class 2 properties increased 10.7 percent to $97.7 billion. For Tax Class 2, Brooklyn has the greatest increase in market value, up 8.8 percent and the greatest increase in assessed value, up 17 percent.
Class 2 rentals saw a market value increase of 7.3 percent. Of this increase, new construction and renovations of rentals accounted for 59 percent of the increase, or $4.9 billion, in new Market Value. Class 2 cooperatives and condos saw a market value increase of 4.2 percent and 8.1 percent, respectively. The total assessed value increases for Class 2 cooperatives and condos are 7.1 percent and 13.8 percent, respectively. For Class 2 rentals, Brooklyn has the greatest increase in market value, totaling 12.6 percent and the greatest increase in assessed value, up 20.1 percent.
The total market value for Class 4 commercial properties increased $14.5 billion, or 4.6 percent, to $326.8 billion. Market forces accounted for 72.2 percent, or $10.4 billion, of the increase, with the remainder coming from other factors. The total assessed value for Class 4 increased 8.1 percent. Class 4 office buildings and retail saw an assessed value increase of 8.1 percent and 9.0 percent, respectively. For Tax Class 4, Staten Island has the greatest increase in market value, up 16.4 percent.
Market values for fiscal year 2020 in Class 2 and 4 properties are based on calendar year 2017 income and expense data provided by property owners. This data is trended to reflect current market conditions, as well as mortgage and bond interest rates, which are used to determine income capitalization rates.
The market value for Class 3 properties, which includes property with equipment owned by a gas, telephone, or electric company, is tentatively set at $34.8 billion.
With the release of the tentative assessment roll, property owners will now have an opportunity to examine and challenge these values before the assessment roll is finalized in May. Department of Finance assessors assign Market Values to all properties in the City annually. All properties are valued by law according to the property’s condition on the taxable status date of January 5. Owners who want to challenge their Assessed Values can do so with the New York City Tax Commission, an independent City agency. The deadline for all properties except Class 1 to challenge their values is March 1. The deadline for Class 1 property owners to challenge their property values is March 15. Forms are available on the Tax Commission’s website, http://www.nyc.gov/html/taxcomm.
Owners who believe that the Department of Finance has incorrect property information, such as the wrong number of units or square footage, may file a Request to Update with the Department of Finance. These forms are posted at www.nyc.gov/finance. Filing a Request to Update with the Department of Finance, however, is not a substitute for challenging the Assessed Value with the Tax Commission. The final assessment roll will include any changes based on the decisions made by the New York City Tax Commission, as well as new information the Department of Finance gathers about abatements, exemptions and other adjustments. In June, the Department of Finance will use the final roll to generate property tax bills for fiscal year 2020.
“We urge property owners to look out and properly review their Notice of Property Value,” says Jiha. “These notices, which will be mailed out shortly, contain vital information about tax information regarding your property.”
Homeowners who believe they are eligible for the Senior Citizen, Veterans, Disabled, Clergy or STAR1 exemptions should submit applications by the March 15 deadline in order to have the benefit take effect for the 2020 fiscal year.
The tentative assessment roll will be available on the website at www.nyc.gov/finance by the close of business, Tuesday, January 15, 2019. Members of the public who do not have access to the Internet at their home can view the roll on the public computer terminals at the City Register’s office in our Manhattan Business Center, located at 66 John Street. The Department of Finance will conduct joint outreach sessions with the Tax Commission in each borough in the month of February to answer questions from the public about their property assessments and what to do if they believe they are not correct. The outreach session schedule is as follows:Outreach Event Calendar