1. Visit the Property Benefits page of NYC Dept. of Finance.
2. Unless you have the Block & Lot handy, you will need to "click here to search by address" at the bottom. Enter the address and apartment number (remember to select the correct borough).
3. This is the screen you should see:
Finance Home > Property Portal > Search Property > Exemption Details
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Owner Name(s) | XXXXXXXX | |
Address | XXX MANHATTAN AVENUE | |
Apartment Number | XX | |
Zip Code | 11222 | |
Borough | Brooklyn | |
Year Built | 2008 | |
Number of Buildings | 1 | |
Number of Stories | 8 | |
Number of Units | 1 | |
Building Dimensions | 0.00 X 0.00 ( 0 Square Feet) | |
Lot Size | 156.83 X 91.54 ( 14,356 Square Feet) | |
Corner | ||
Building Area | 1,069 Square Feet | |
Current Tax Year | From July 1, 2014 to June 30, 2015 | |
Building Class | R4 - Condominiums__CONDO UNIT IN ELEVATOR APARTMENT | |
Tax Class | 2 | |
Tax Rate | 12.855 % | |
Market Value | $198,044 | |
Assessed Value | $85,532 | |
Proposed Assessed Value | $85,068 | |
Land Assessed Value | $13,637 | |
Proposed Land Assessed Value | $13,636 |
4. As you can see this screen has some great information on the property. For our purposes I highlighted the two pertinent figures in red, Assessed Value and Tax Rate. It's interesting to note that in NYC the value assigned to the property for tax purposes by the tax assessor is always significantly different than the actual price (this apartment is worth well over $1 million).
5. To arrive at the annual taxes multiply the Assessed Value by the Tax Rate: $85,532 X .12855 = $10,995/year or $916/month. This amount will always represent the taxes before any benefit or abatement. This particular property has an abatement, let's investigate that...
6. If there is a tax exemption of some kind you will see the line at the bottom of the apartment information. In this case we click on "421A Exemption - Click here to see details." The following screen appears:
Finance Home > Property Portal > Search Property > Exemption Details
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7. From this screen we can see the start date, end date, total benefit amount, and also click through to "View Calculation Method" to find out what the taxes should be for each year of the exemption. Most exemptions "step in" after a certain period of time has passed, meaning that the taxes will reach their full value gradually over the course of the abatement.
NYC raises or lowers taxes annually by re-assessing all of the properties, after they have calculated the coming year's tax burden (how much money is needed for schools, police, etc). This means we can't exactly predict what the taxes for a property will be 10 or 20 years from now when an abatement ends. All we can do is see what they would be today (in our example $916/month) if the abatement were gone - a good indicator and point of comparison when deciding whether or not to purchase a property. The purchaser's real estate attorney should also confirm the taxes as part of their due diligence prior to contract signing.
UP NEXT: Using the NYC Department of Buildings information website.
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