New York City should overhaul its complicated property tax system by classifying small residential buildings, family homes, condominiums, and co-ops in the same category and assessing them based on sales value, an advisory commission convened by Mayor Bill de Blasio and City Council Speaker Corey Johnson says in preliminary recommendations.
- The commission recommended a new classification for condos, co-ops, residential buildings with 10 units or less, and homes for one to three families. Those properties would be taxed at their full market value, with changes phased in over five years and certain income-based exemptions and ceilings.
- Commercial property and residential buildings with more than 10 units would continue to be assessed and taxed using current standards.
- Condo and co-op owners would likely see larger tax bills under the plan, depending on where they live and how long they’ve held their property. The commission plans to fine-tune the preliminary plan after a series of hearings in coming weeks.
- The commission was formed by de Blasio and Johnson to recommend the first major changes to the city’s property tax structure in nearly 40 years, as long as the results are revenue-neutral. The city and state are fighting a lawsuit from large residential property owners and civil rights groups challenging the current property tax system.