Quick post about property taxes.
First, I should say, one of the things I like about living in Massachusetts is that I think all people are treated fairly here. Okay, not really, but it is true, we all pay the same sales tax (5%), the same income tax (5%, sorry, I mean 5.3%), and, in Boston, the same property tax ($10.73 per $1,000 of assessed value).
Not so, in New York City.
It’s crazy there. As readers of this blog know, I am not a fan of rent
giveaways stabilization / rent control. I’m glad it’s gone, for good, in Massachusetts.
It’s only a small part of the whacked property tax scheme going down in NYC.
Owners of single-family homes have it good. Owners of post-war co-ops have it great. Owners of condos in new developments have it bad.
If you live in a pre-war (we’re talking pre-World War I) co-op, they compare your building with RENTAL buildings, to figure out what your building is worth, then calculate what each owner should pay. Does that make any sense??!!
No, it doesn’t. 720 Park Avenue, a luxury pre-war co-op, is assessed, the whole building mind you, at $28 million. Funny thing, last year one single unit in the building sold for $20 million. The average property tax bill for owners there is about $3.40 per $1,000 of assessed value.
An owner of a single-family home in Queens is paying $6.40 per $1,000 of asssessed value. An owner in an older building is paying around $5.50 on Central Park West. Meanwhile, some owners of new condos pay close to full amount, or $9.40 per $1,000 of assessed value.
I don’t think property taxes in Boston are too high (okay, quiet down) but I do question where all our money is being spent. Still, we have it a lot better than they do, in New York City.
When It Comes To Taxes, Older Is Better, by Josh Barbanel, The New York Times