We’re all miserable as rents and taxes continue to climb
10:56 AM, MAY 2, 2012
By Sarah Trefethen & Sabina Mollot
Owners of multi-family buildings pay the lion’s share of New York City property taxes, according to a recent analysis by New York University’s Furman Center for Real Estate and Urban Policy.
The effective tax rate for larger rental buildings is five times the rate for one- to three-family homes, according to the findings, included in the center’s State of New York City’s Housing and Neighborhoods Report.
“As a result of the strong preference shown to homeowners at the expense of large rental properties, New York City imposes one of the highest tax burdens on apartment buildings of any large city in the country,” Vicki Been, director of the Furman Center, said in a statement. “Conversely, the tax on one- to three-family homes is one of the lowest in the country.”
The survey results were announced as the city’s Rent Guidelines Board unveiled its proposals for annual rent increase for the New York’s one million rent regulated apartments.
In proposing hikes from 1.75 to 6.75 percent, owner representative Steven Schleider said tenants need to “share the burden” of landlords’ rising fuel costs and property taxes.
In the 2011 fiscal year, the city collected nearly $17 billion from property owners, according to the Furman Center study, and 36 percent of that revenue came from taxes on apartment buildings – even though those buildings make up only 24 percent of the citywide market value.
At the same time, one-, two- and three-family homes make up 49 percent of the city’s real estate value but accounted for just 15 percent of the city’s property tax revenue. Continue reading