City tax assessors confirmed what everyone more or less knew: prices have shot up over the last year. The total market value of taxable property crossed the $1 trillion threshold for the fiscal year beginning July 1, a 10.6 percent jump from the previous year.
That increase is the largest since the last year of the pre-crisis boom, the year ending in June 2008, the Wall Street Journal reported.
Average condo tax assessments rose the fastest among unit types, increasing by 10.7 percent to $9,302. Average taxes on co-ops rose by 6.5 percent to $6,837.
Brooklyn saw by far the largest spike in market values, with a whopping 16 percent increase year-over-year. Queens values climbed by 9.9 percent while Manhattan, which foots nearly two-thirds of the city’s property tax bill, saw values increase by 9.3 percent.
“This year’s tax roll is simply a reflection of New York City’s growing real estate market,” Jacques Jiha, commissioner of the city’s Department of Finance, told the Journal. Construction of rental properties jumped during the year and now account for more than a third of all construction activity in New York City, and more than half of all construction activity in Brooklyn, Jiha added.
It’s important to note that “market values” as assessed by the city for tax purposes are generally well below actual property values in the investment sales market. The Google Building at 111 Eighth Avenue, for example, was assessed by the city as being worth $827.7 million in 2013, but the search giant bought the property for a cool $1.8 billion in 2010. [WSJ] – Ariel Stulberg
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