In this video we're going to show you how to
determine why property taxes are different for
apartments of the same line in the same building but just on different floors
This also works for a very similar sized apartment to the same nothing and they have a large discrepancy
in their property taxes
We'll show you why and we'll show you how they're listed as such. The first thing to keep in mind is
Let's take a look at this this list thing that this viewer had a question on.
Keep in mind that New York City is generally much more loose in terms of
rules around what a listing agent can advertise
For example
This property tax figure is listed as one thousand forty three a month. Seems pretty reasonable. Now is this figure
the property taxes before any older specific of abateman's and exemptions?
We don't know. In some other parts of the country such as the Hudson Valley for example
Westchester the Hudson Gateway Association of Realtors offers the HTMLS, they are much more stripped
agents are required to put in a
tax figure that is before any of Bateman soar exemptions but in New York City,
It's much more loosened and of a Wild West so
We don't know but we can certainly verify what is going on. And this is a legitimate question because this vasilich viewer
or rather a forum poster and taking a look at 2016 and they had a question because this shows
1043 but if they look at 19 E, which is previously listed about a month ago
It's the same layout but the taxes are higher in twelve eighty nine. So
What is the correct answer?
Listing agent here simply understanding the taxes somehow
Well fortunately for condos and other real property
You can actually take a look at their latest quarterly property tax those on the New York City Department of Finance website
And verify it for yourself.
Obviously for coops, this is a bit harder because co-op units do not
receive individual property tax bills from the city
because cops are not real property in a co-op building and the the
Corporation owns the entire building and the shareholders are tenants
With a proprietor at least occupy a specific apartment, but there are shareholders of that corporation
So in short the in a co-op building you can't do this because the co-op building receives one property tax bill for the entire building
from the city
But for condos houses and other real property
you can go on the
NYC Department of Finance website
And and check out the property tax goes so let's do this and see for ourselves what's going on with this one?
You can google any number of variations of this and when see every tax bill ppl look up they'll take you to the same place
Note that we put 49 Street versus a 49th Street
There is no th if you put th here the system will not recognize it
Property tax DOS
You can see that this is each fiscal year New York City has a strange fiscal year where it essentially starts mid-year
So these are grouped as such the fiscal years overlap two years at a time
Anyway, this is the latest property tax go quarterly
You can take a look
And
This is very easy to see what's going on. So
Essentially this listing agent for 2060 has simply divided this figure 12
513 by 12 to get a monthly figure and you divide that by 12 you'll get ten forty two spots seven five
Which is one thousand and forty three approximately which is what is listed exactly here
Now keep in mind because New York City is quite fast and loose with
rules on how listing agents must present
facts and data
You know, this may not apply to you because
The actual tax before any exemptions and abatements is fifty thousand four hundred sixty-six
But this owner is getting two abatements that may be specific to them. This is a very small basic star
relief
Abatement but the more major one is this condo co-op abatement and this this abatement is more
eligible for owners who
live in the property suits their primary residence
It's not held in an LLC
So then generally you will be eligible for this condo and co-op payment if you just take a look
Most properties if you're going to be assessed above sixty thousand that they've been is seventeen point five percent
So this is a pretty useful
abatement again for people who use the property as their primary residence now again
The buyer may be an investor or someone who's not going to be using it as their primary residence
so this abatement made that apply but again New York City not many rules around how you list the
The monthly expenses and any data really so they're using this figure. It's just something to keep in mind
So then, what the heck is going on with 9kt and why is it listed as
1289 about a month ago
Let's take a look
Oh, very interesting
You'll see that the 15 466 is exactly the same tax figure as
2060 before
exemptions and abatements so they actually have the exact same property taxes 15 466 if you like in 1980 15
466 however, the owner in 19 E
did not apply or simply did not get or was not eligible for any of the
Abatements of that the owner of 26 E did so the listing agent simply took this
We assume and divided about by 12. Let's do this. So if we divide
15 4 6 6 by 12 you get 12 88 spot 8 3 3 3
which if you go back is
It is
1289 rounded up so that is exactly what they did. So
this is a great example of
2 units that are identical and layout except they are 7 floors apart and the same building
They should have the same property taxes or at least very similar
And in fact by viewing the property tax goes for each unit
Although we were able to verify that they do have the exact same property taxes
before abatement and exemptions, however
The way they are presented by the listing agents
Varied and this was because the
listing agent of 26 you used the
taxpayer after the owners
specific
Abatements and exemptions so they were able to present a lower figure. This is why but again, it's
Remember that those abatements are specific to the owner and you might or you might not be able to be eligible for them. So
This is why these two specific units have different tax figures, but they're they really in fact have the same
Again we hope this is helpful
Well, you should always do your due diligence and then you should easily be able to check this out yourself
We do have many resources on our website
Remember to check out our article on how to measure square feet for real estate and in NYC
This is related and ancillary to the basic due diligence such as checking out the property tax bill
Now as a bonus question
That's also talked about whether your property taxes will automatically increase after you buy at place
This is a relevant question because we have many buyers coming in from California where they have some sort of a homestead exemption
where
essentially property taxes
Either are frozen or rise very slowly perhaps indexed to inflation
You know from the time that the owner bought it so essentially this protects for example homeowners
You know whose property values have increased dramatically as of late because of gentrification
You know their property taxes wouldn't we be related to be substantially higher
which wouldn't make it unaffordable and kick a lot of longtime residents out of their homes, so
You know this essentially
Lets a lot of owners who have been in places for say 40 50 years still pay very little property taxes
They send a much lower assessed value than if they had just purchased it. Now the question is
In California,
If you buy a property and
The owner has lived in it for say decades
The property taxes that you will pay are going to be much higher than the previous owner
because once you make that transaction and you buy the property
California is then going to
You know since you assess your property at market value and taxes
You're going to be a lot higher now the question from this buyer is will that happen in New York City?
It's a legitimate question. They're looking at the property axis being listed and accounting for them
What they aren't accounting for are for the taxes to suddenly increase because you have a recorded sale
That is perhaps much higher than the last trade. It's a very legitimate question
To our understanding the New York currently does not have something like that
It has been discussed by lawmakers, but it is there is no similar homestead
act
like that
So this means when you buy a condo for example in a building
Just because you buy it and perhaps the last trade for the same unit was 15 years ago
The city is not going to come in here and just automatically increase your taxes dramatically
You know assessments are
are
assessing in Europe year by year basis regardless of who you are how long you've lived in there so
It is independent of I suppose of whether you are a legacy older or not
So again, that is not a factor because you know
Whether you bought it this year or whether that's the owner still living here next year
The city is going to come in and take a look
And assess your property anyway
So what you do won't have too much of a factor
You know, of course. If you are part of a trend of rising property prices, you know sure the assessments might rise anyway, but again,
one person's purchase
Typically will not make any significant impact on what your assessment actually will be
So we hope that's answered it
Thank you so much for watching our video if you've
enjoyed our
Shadow, please remember to subscribe more content just like this
Please like the video leave a comment
If you have any questions, we always get back to you right away
If you have any other interesting questions like this
Please don't hesitate to drop a note at our forum and someone from the community will get back to you
We hope to hear from you. And of course if you ever need advice or guidance on the purchase process
We have a great number a very experienced partner brokers based throughout New York and the City
Hudson Valley, Long Island
If you need any help the advice and guidance when you buy property is free
Guide you through it and not only that they can provide you with the house and buyer closing credit
Which is essentially up to two percent of the purchase price back to you at closing
To buy value a mortgage rate or as a credit against your closing costs, and it's all free
So we hope to hear from you and thank you so much for watching