>While the tax seems large, experts say the city’s antiquated assessment and valuation system dramatically undervalues properties, reducing the burden. City valuations can often be 10% or less of the true market value, they said.
>Rather than overhaul the system immediately, the city will gradually update valuations – and the tax – according to the budget documents. Starting in the 2028-2029 tax year, the property values will be based on comparable sales. Since valuations will skyrocket, the tax rates will fall to compensate.
Hold on a second. Reading between the lines, this means everyone's property taxes are going up, right? Because the valuation system is being revised to more accurately reflect resale value.
Obviously this would affect more expensive properties more. But I havent seen anyone acknowledge that everyone's taxes will increase. Is that because I have the details wrong or because it's just flying under the radar?
no, you're right.
it's flying under the radar because people don't read these things and critically think about them.
as per usual, the middle class will take the hit. the people that voted for this will become poorer, and the wealthy will go on as normal.
"everyone's taxes will increase" is not true because lot of newer apartments don't get the chance to undervalue.
New apartments? NYC?
I jest.
Im not sure you understand what Im saying though. Wouldnt normal people's taxes go up because the appraisal changes are global? Say, a primary residence bought for $750k.
> Wouldnt normal people's taxes go up because the appraisal changes are global?
No. Our town finally reassessed everyone after not doing it since before COVID. Assessments doubled and everyone freaked out, but the tax levy didn't change, so the amount of actual tax basically didn't change; $160M in taxes for 20k people is still $160M in taxes for 20k people. People just now pay less tax per $1k house value, but for higher house values.
Is your town NYC?
From what I see its 20% of the assessed value in NYC (which is currently significantly lower than market value).