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NYC PROPERTY TAX ALERT

Here's an e-mail we received from our friends over at the Rent Stabilization Association (RSA) :

rsa_nyreblog_com_.gifRSA ALERT: Changes to the Property Tax Rate

The New York City Council voted to approve a set of changes to the budget that were negotiated with Mayor Bloomberg, who is trying to guard against the effects of an economic slowdown. The package of spending cuts and tax hikes, including an average property tax increase of 7 percent, come as the city faces deficits of more than $1 billion next fiscal year and multiple billions in future years.

CHANGES IN YOUR JANUARY, 2009 TAX BILL

A new tax rate was adopted for July 1, 2008 - December 31, 2008. This change, which happens almost every year, is applied retroactively back to July 2008, and represents a 1.77% increase over the fiscal 2007/08 tax rate.

The tax rate was increased for January 1, 2009 - June 30, 2009 by 7.5% because of the financial crisis. This change applies to all property owners starting in January, and is not retroactive to July 2008.

The total increase in tax rate from last year comes to 9.5%.  Let your Councilperson know if you think you will have trouble paying such a large increase.     

The new property tax rates for the 2008/09 tax year are listed in the following table:

YEAR

CLASS 1

CLASS 2

CLASS 3

CLASS 4

08/09
3rd & 4th Qtr.

16.787%

13.053%

12.577%

10.612%

08/09
1st & 2nd Qtr.

15.605%

12.139%

11.698%

9.870%

07/08

15.434%

11.928%

11.577%

10.059%

For more information you can visit the Department of Finance website  or contact the RSA at 212.214.9200.

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