New York City property owners owe $1.65 billion more in property taxes than they did last year, despite a pandemic that has hobbled real-estate values.
A Wall Street Journal analysis of the latest city assessment rolls found that the industry's new tax bill will rise 5.7%. That is because the tax assessment date was Jan. 5, well before property values deteriorated in response to the March shelter-in-place orders that led numerous businesses to close and many tenants to withhold rent.
Property taxes are of central importance to New York City's budget.
The New York real estate community made a plea in recent weeks to persuade the city and state to freeze property taxes at the current level.
A spokeswoman for Mayor Bill de Blasio said the city realizes the impact the virus has had on the real estate community but added that "We must balance the very real needs of the City, which relies on property taxes to fund essential city services like hospitals and our first responders."
Because changes in assessments are phased in over many years, property taxes have continued to rise in good years and bad. The total New York City property tax levy has risen every year since 1997, even in the aftermath of the financial crisis in 2008, according to figures from the city's office of management and budget.
Under the mayor's proposed budget, for the fiscal year beginning July 1, other city taxes are due to fall by $5.3 billion, or about 15%, from current levels, including a $2 billion decline in the personal city income tax, while property tax collections are due to rise to $30.8 billion, according to the budget estimate.
A Wall Street Journal analysis of the latest city assessment rolls found that the industry's new tax bill will rise 5.7%. That is because the tax assessment date was Jan. 5, well before property values deteriorated in response to the March shelter-in-place orders that led numerous businesses to close and many tenants to withhold rent.
Property taxes are of central importance to New York City's budget.
The New York real estate community made a plea in recent weeks to persuade the city and state to freeze property taxes at the current level.
A spokeswoman for Mayor Bill de Blasio said the city realizes the impact the virus has had on the real estate community but added that "We must balance the very real needs of the City, which relies on property taxes to fund essential city services like hospitals and our first responders."
Because changes in assessments are phased in over many years, property taxes have continued to rise in good years and bad. The total New York City property tax levy has risen every year since 1997, even in the aftermath of the financial crisis in 2008, according to figures from the city's office of management and budget.
Under the mayor's proposed budget, for the fiscal year beginning July 1, other city taxes are due to fall by $5.3 billion, or about 15%, from current levels, including a $2 billion decline in the personal city income tax, while property tax collections are due to rise to $30.8 billion, according to the budget estimate.
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