Civic Learns About Real Estate Tax
As tax season begins, a real estate lawyer dropped by the Middle Village Property Owners/Residents Association last Monday, Feb. 10, to talk about property taxes and contesting your bill.
Stephen Bordanaro of law firm Goldberg, Weprin, Finkel and Goldstein LLP explained how tax assessments are calculated and what to do if you think your assessment is too high.
To determine how much you must pay for property tax, the city assesses your house’s fair market value-roughly how much it is worth based on sales in your area. It multiplies that number by 6 percent to get your “assessed value”- essentially the portion of your home’s value that the city can tax. The 6 percent multiplier is set by the state, not New York City, Bordanaro noted.
Homeowners pay taxes on the assesed value at a rate set by the city.
Currently the city’s tax rate for one- to three-family homes is about 19 percent, Bordanaro said.
So, if a house’s fair market value was $100,000, the assessed value would be $6,000 (6 percent of $100,000), and the tax due would be $1140 (19 percent of $6,000).
State law protects homeowners who’s home’s value has shot up. Thereisa6percentcaponthe assessed value’s annual growth, Bordanaro said.
So, if a home’s assessed value was $6,000 in 2012 and the home’s value doubled without any renovation, the 2013 assessed value could not exceed $6,360 (a 6 percent increase over 2012). According to the city, it would take about 18 years for such a home’s assesed value to reach 6 percent of its market value.
Bordanaro said residents that believe their assessed value is too high can appeal to the New York City Tax Commission.
“They’re fair,” he said. “If they believe your assessment is too high, they’ll lower it.”
The deadline to file an application for correction of effective market value is Mar. 17.
Bordanaro also encouraged residents to seek out exemptions, noting that the city’s senior exemption can cut some tax bills in half .
The group’s next meeting is scheduled for 7:30 p.m., Mar. 10 at St. Margaret Parish Hall, located on 79th Place 79th Place south of Juniper Valley Road.
