NYC Department of Finance Final Property Tax Assessment Roll

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NYC Department of Finance Final Property Tax Assessment Roll

The NYC Department of Finance published the fiscal year 2024/25 final property tax assessment roll on May 25, 2024.

Tentative Roll
DOF published the 2024/25 tentative property tax assessment roll on January 15, 2024. From the May 25, 2023, final assessment roll for tax year 2023/24 to the 2024/25 tentative roll, DOF had increased market values +0.66% and taxable assessed values +4.15%. These tentative increases included the following, as I previously advised (NYC Property Tax Assessed Values Increase for 2024 | Rosenberg & Estis, P.C.):

• Tax class 2 residential rentals (over 10 units) had market value changes solely due to market forces of +1.9% citywide, including +3.47% in Manhattan

• Tax class 2 residential condos (over 10 units) had market value changes solely due to market forces of +1.36% citywide, including +4.46% in Brooklyn

• Tax class 4 office buildings had market value changes solely due to market forces of +1.78% citywide, including +3.23% for Manhattan Trophy buildings

Final Roll
From January 15 to May 25, DOF further increased the values about 20 basis points. From the May 25, 2023, final assessment roll for tax year 2023/24 to the 2024/25 final roll, DOF increased market values +0.87% and taxable assessed values +4.35%.

The biggest losers:
• Tax class 2 residential rentals (over 10 units) had market value changes solely due to market forces of +2.51% citywide from 23/24 to 24/25, an extra +61 bps and +$737 million over the tentative roll.

• This large increase included +4.00% in Manhattan, where half of the market value increase solely due to market forces was driven by Manhattan (+$368M).

• Special Franchise property is utility property located in the public right of way, such as pipes, poles, and wires on city streets. The market value increased +$8.6 billion on the final roll, the single largest increase citywide, most of which is for ConEd property. Ultimately this extra $460 million in property taxes should trickle down to ConEd ratepayers through higher utility bills.

The biggest winners:
• Tax class 2 residential condos (over 10 units) in Manhattan which had market value changes solely due to market forces of +0.79% on the tentative roll, dropped -226 bps, for a final 23/24 to 24/25 change of -1.47%.

• Tax class 4 office buildings in Manhattan which had market value changes solely due to market forces of +1.73% on the tentative roll, dropped -97 bps, for a final 23/24 to 24/25 change of +0.75%, largely driven by Class A and Trophy offices (-159 bps).

How these changes will affect taxes
DOF will use these final assessments to calculate the property taxes due July 1, 2024, for which DOF will send the property tax bills in the first week of June. The City Council has not yet set the tax rates, so DOF will use last year’s 2023/24 tax rates to compute the July 1st bill. After the City Council sets the tax rates later, DOF will adjust the second half of the year taxes due January 1, 2025.

The average Manhattan residential condo tax will increase $299 to $22,113 for 2024/25. The average Manhattan Class A office tax will drop $0.11 to $17.50 psf.

Despite DOF publishing the “final” assessments for tax year 2024/25, reductions are still possible if the assessment was validly protested at the Tax Commission and the case is still pending review.

The City Council officially set 0.5% as the discount rate for early payment of property taxes for tax year 2024/25.

Please let this serve as a reminder to file for the Real Property Income & Expense (RPIE-2023) and Storefront Registration (SFR-2023) by June 3, 2024.

We encourage you to reach out to us to discuss your new tax assessments. Please contact your trusted R&E attorney or Benjamin M. Williams, Member and Leader of the firm’s Property Tax Department, who authored this alert.