By Rich Bockmann
Queens homeowners will see their property tax bills rise by an average of about $183 next year on the heels of a hot real estate market.
Property taxes for owners of one-, two- and three-family homes and condos will climb about 4 percent in fiscal year 2015 for an average increase of about $183, according to the city Department of Finance’s preliminary figures.
“This year’s tentative assessment roll increases are a reflection of higher sales prices and larger net operating incomes for property owners,” Finance Commissioner Beth Goldman said. “In addition, significant construction activity in the commercial and multi-family residential markets has created new market value, further expanding the city’s property tax base.”
The market for residential properties was heated last year, pushing the city’s tax assessments higher. The median sales price for one- to three-family homes in the borough rose 9.8 percent from the fourth quarter of 2012 to $530,000 during the last three months of 2013, according to a study by the real estate firm Douglas Elliman.
The amount of taxes the city will collect from Class 1 properties — mostly one- to three-family homes and condos — in Queens will rise despite the fact that overall the group has fewer properties than it did the year before.
The one significant increase in the borough came in the number of condo units available, which are up 1.17 percent. The market for condos is surging — up nearly 150 percent year to year — and many rental-building owners are finding it lucrative to convert their properties to condos.
Across all property types, the borough’s assessment will rise more than 6 percent to $26.6 billion, the highest of the outerboroughs.
Rental properties, which are assessed based on revenues, and co-ops, which are evaluated based on comparisons to similar rental properties, will see their tax bills go up 7.7 percent.
Commercial properties, which pay about 38 percent of the property taxes in the borough, will have their assessments rise 10.49 percent.
Each year the city assesses every property in the five boroughs as of Jan. 1. Owners of one-, two- and three-family homes and condos have until March 17 to challenge their values, while March 3 is the deadline for all other properties.
The Finance Department and the city Tax Commission will hold outreach sessions in each borough in February to answer questions property owners may have about their assessments.
The Queens meeting is scheduled for Feb. 4 at the Queens Business Center in Jamaica, at 144-06 94th Ave., from 10 a.m. until noon.
Reach reporter Rich Bockmann by e-mail at rbockmann@cnglocal.com or by phone at 718-260-4574.
