City Council sets tax rates.

The City Council set property taxes recently without waiting for passage of a home rule resolution from Albany.

In order to get tax bills printed and delivered by the July 1 deadline, the City Council had to use last year's tax rates. Therefore, without any intervention, the amount of the levy payable by each of the four tax classes could only be capped at five percent, instead of the two percent agreed upon by the Mayor and City Council.

However, amounts due will be different than last year because of changes in the tax levy that are not reflected in the old rates.

So for the first half of Fiscal Year 2001, taxes owed by Class I homeowners will be higher than expected while taxes owed by owners of Class IV commercial properties will be lower than expected.

Class II apartment building tax rates are expected to remain steady while Class III utilities will rise, no matter what the cap.

The Home Rule resolution in Albany could change everything. As written, it requests a two-percent cap, which was expected to pass.

But that's not the end of the story. A home rule measure has been sent to Albany requesting the 2 percent cap. That is expected to pass, possibly as early as this week. Because it is too confusing for taxpayers to receive bills with different amounts close to the payment due date, not to mention costly for the city to send out a million letters, new bills will not be sent until December.

If Albany passes the legislation and it is signed by the governor, those, bills will be calculated on the two-percent cap, and adjusted to reflect the full fiscal year's taxes.

That means commercial properties will pay slightly more for bills due January 1, 2001 and Class I homeowners will have their bills reduced.

The current tax rates are Class I, $11,331; Class II, $10,846; Class III, $10,849; Class IV $9,699, per $1,000 of assessed billable value.

With your borough, block and lot handy, taxpayers may research their final assessed and billable valuations through the Internet at NYC Property through the City's web site at www.nyclink.org or the Finance home page, or through taxpayer assistance at [phone].

Remember too, the City Collector is no longer located at 150 Nassau Street but taxes may be paid at the Municipal Building, One Center Street, Room 910, in the borough offices, or at various neighborhood check cashing services. They can be found through the finance home page at www.nyclink.org/html/dof/home.html.