It pays to live in Park Slope.
Residents in the tony brownstone neighborhood pay less than half as much in property taxes than neighborhoods in Southeast Brooklyn, this paper has learned.
The startling disparity was brought to light by Mill Basin realtor Edie Okun, who first noticed the inequitable pattern when her firm recently sold a property in Park Slope.
The owner of a residential property with a market value of $1.3 million on Lincoln Place pays $6,435 a year in taxes. A comparable property on East 59th Street valued at $495,000 pays $14,788, city records show.
“We said, ‘Why the hell are those taxes so cheap,’” she recalled.
Okun and her business partner poured through city data, comparing residential real estate taxes in Park Slope to those in neighborhoods like Georgetown, Mill Basin and Canarsie.
A Bergen Street home valued at $1.3 million pays $3,908 in real estate taxes, while a comparative home on Ralph Avenue with a market value of $685,000 pays $6,223.
And the list goes on, Okun said. “We are paying double and sometimes three times as much.”
The city’s Department of Finance, the agency that assesses property values and collects real estate taxes, among other duties, confirmed the disparity.
According to the agency, when the property tax law was adopted by the state in 1981, Park Slope properties had lower assessed values than properties in other areas.
While real estate values in Park Slope skyrocketed, the base, assessed values remained fairly low. And real estate taxes are based on assessed value — not market value.
City law says that for small homes, assessments may not increase by more than 6 percent in one year and 20 percent over five years. For four-to-10 unit properties, assessments may not increase by more than eight percent in one year and 30 percent over five years.
The purpose of these limits and phase-ins is to protect owners from steep tax increases that would result from changes in market value.
But assessment caps can also create inequities because market values in and within neighborhoods change by different percentages, but the assessment caps are the same for all owners, the agency said. As a result of the caps, assessed values did not keep pace with market changes.
“Now the question is, what is to be done about this,” said Assemblymember Alan Maisel, who represents neighborhoods in southeast Brooklyn.
“The city of New York is going to have to address this issue,” the state lawmaker continued. “It’s an inequity that should not stand.”
©2008 Community News Group
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