Res. No. 13
Title
Resolution calling upon the New York State Legislature to introduce and pass, and the Governor to sign, legislation to allow the limitation on increases of assessed value of individual parcels of class one properties to reset upon transfer
Body
By Council Members Borelli, Brannan, Richards, Miller, Rosenthal, Rose, Holden, Cornegy, Yeger, Williams, Grodenchik, Lander, Matteo and Ulrich
Whereas, Pursuant to the New York State Real Property Tax Law (RPTL), class one properties generally includes all one-to-three family residential homes in the City; and
Whereas, The market value of a property is the worth of the property as determined by the New York City Department of Finance based on its classification and other requirements; and
Whereas, The assessed value of a property is a figure assigned to the property, based on a set percent of its market value, for the purpose of computing the property tax; and
Whereas, The RPTL limits the amount by which the assessed value of an individual parcel of class one property can increase; and
Whereas, In any one year, the assessed value of a class one property cannot increase by more than six percent over the prior year's assessment and not more than twenty percent over a five-year period; and
Whereas, This cap applies only to increases in assessment due to market forces and does not apply to increases resulting from physical alterations or the expiration of any tax exemption; and
Whereas, The purpose of the cap is to ensure that an individual's property tax bill does not fluctuate too much from year-to-year; and
Whereas, Under current law, the first of the five-year periods is measure from 1980 for parcels that were on the assessment roll at that time, or from the first year after 1980 in which such parcel was added to the assessment roll; and
Whereas, In essence, assessment caps are tied to the property and do not reset when a property is transferred...
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