Some residential properties received excessively large assessment increases from the Finance Department this year because of large increases in their market value. At the City Council's Finance Committee hearing today, Finance Department Commissioner David Frankel testified that the large increase in taxes occurred because "we have been improving our assessment methods and in doing so corrected under‐assessment that had occurred in previous years."
The Commissioner proposed limiting real property tax increases for those Class 2 properties (description below) to about ten percent. The Council asked him to explore lowering that cap to under ten percent.
In addition, the properties used as comparables for assessment purposes this year weren't posted online early enough to give taxpayers time to evaluate them. The Commissioner said that enough time will be given next year.
Class 1: These are mostly residential properties of up to three units--including family homes and small stores or offices that have one or two apartments attached--and most condos that are three stories or less.
Class 2: These are all other properties that are primarily residential, including co-ops and condos.
The Commissioner's testimony is posted here.
