Friday, January 18, 2013
Kicking them when they're down
From the NY Post:
Their homes were downed by Sandy, but their taxes are still going up.
At least 69 homes severely damaged by the super-storm are going to receive higher property tax bills next week despite losing an average of more than 25 percent of their value, officials said yesterday.
It sounds nuts, but officials said that's how the convoluted tax systems works.
Assessments can't go up more than 6 percent a year, or 20 percent over 5 years, no matter how much the value of a home soars in the Class 1 category that covers 1-, 2- and 3-family properties.
Soaring market values that can't be captured in one year are carried over to the next year.
So 69 homeowners hammered by Sandy are going to get the shock of their lives when their preliminary 2013-2014 property tax bills arrive and they notice their assessed values have gone up an average of 4.3 percent, while their market values were reduced by 26.4 percent. Since tax bills are based on assessed value, they'll be forking out more for taxes.