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City finance department sets property values at $796b.

Department of Finance Commissioner David M. Frankel last week published the tentative property assessment roll for fiscal year 2011.

Overall market values, including new construction added to the roll, rose 0.12% for New York City's one million properties.

State law requires New York City to tax property on a percentage of market value, known as the assessed value. The law limits how much assessed values, and therefore taxes, can rise for homes and small residential properties in a given year.

Assessed value increases for commercial properties are also phased-in. In years following market growth, assessed values continue to rise even if market values decline, as is the ease for fiscal year 2011.

"Assessed values went up for all classes of property, even in cases where market values declined because of State limits on assessment growth," said Finance Commissioner Frankel. "When the market rebounds, owners will benefit from assessments that will rise more slowly than the value of their properties."

Overall market values for 1-3 family homes (Class 1), which are based on comparable sales prices, fell 2.73 percent citywide, compared to a 5% decline last year. Assessed values increased 3.97 percent.

Overall market values for cooperatives, condominiums and apartment buildings (Class 2) rose 4.04 percent. By law, Finance is not permitted to use sales prices to value co-ops and condos. The values are based on income and expense data provided by property owners for 2008, the most recent data available when the roll is set.

Finance made certain adjustments to the 2008 data to account for 2009 market conditions. The increase in market values is also due to nearly 5,500 new Class 2 properties added to the roll this year. Assessed values increased 5.09%.

Overall market values for commercial properties (Class 4) saw an increase of 2.14%. Hotels saw a drop in market value of 1.97% and office buildings increased in value by 2.37%.

Market values for commercial property owners reflect income and expense filings by property owners for 2008. The increase in Class 4 market value also reflects the approximately 14.5 million square feet of new commercial space that came onto the roll this year. Class 4 assessed Values increased 4.99%.

Department of Finance assessors assign market values to all properties in the City annually. All properties are valued by law according to the property's condition on the taxable status date of January 5.

Owners who believe that Finance has used incorrect information to determine their market value may file forms providing corrections. These forms are posted at www.nyc.gov/finance.

If Finance verifies that the corrections on these forms are significant enough to change the market value of a property, the agency will make the correction before the final assessment roll is published on May 25.

The final roll will also include changes, if any, based on the decisions made by the New York City Tax Commission, an independent City agency, as well as new information Finance gathers about abatements, exemptions and other adjustments.

In June, Finance will use the final roll and new tax rates adopted by the City Council to generate property tax bills for fiscal year 2011 beginning on July 1.

Owners of class 1 properties who wish to file an application for correction with the Tax Commission must do so by March 15. Owners of all other properties must apply by March 1.
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Title Annotation:FINANCE
Comment:City finance department sets property values at $796b.(FINANCE)
Publication:Real Estate Weekly
Date:Jan 20, 2010
Words:571
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