Sunday, January 16, 2011

Here Come the Huge Property Tax Increases

Co-op and condo owners will pay sharply higher property taxes next year in NYC, under a preliminary assessment roll released Friday by the Bloomberg administration, WSJ reports. The city attributed the rises, due to take effect in July, to higher market values placed on apartment buildings by tax assessors.

Taxes collections are expected to rise by 7.5% for co-op owners, and 9.6% for condo owners across the city, according to a summary report released by the Department of Finance.

These are, of course, higher assessments than the actual property value increases. It's Bloomberg's sneaky way of raising tax revenue. But there has been some strength in the NYC market to provide cover for Bloomberg's high assessments.

Fed Chairman Bernanke's first money pump (QE1) went directly to Wall Street and that's why you see the higher assessments in NYC, but QE2 is about the rest of the country.

What's going on in NYC is what Bernanke wants nationwide. One of the main reasons he is goosing the money supply is so that state and local governments will collect more in taxes to pay off their huge debts.  If he can get an uptick in property values nationwide, then the assessors will takeover from there, and spike the valuations. Bottom line: Expect much higher assessments across the country over the next two years.


  1. The Parasites will steal your money using what they refer to as property tax because you have almost no recourse. The Parasites understand that you have to live somewhere and property tax is their prefered way to will live off of you...Go ahead...Try to escape this tax.

  2. This is why one is well advised to keep their state and local tax foot print as small as possible. I debated about taking advantage of the lower prices on waterfront property (ocean access) here in South Florida, now that it can be had for about 2/3 the price it was only 4 years ago. But then when I consider that this property will be the first to rise and will rise the fastest in an hyped up inflationary economy, I could see huge tax bills looming since our real-estate tax rates have been going up 13% a year since 2006. A $25k tax bill could easily go to $50k in a year at the current rate increases combined with some appreciation. At age 50, I have lived long enough to know the rates will never be lowered as government will always find a purpose for the extra money, like pay raises and insane pension benefits. I also fear that if things start to get really bad, that local pols will go on a rich person tax hunt and come up with a way to create some sort of special taxing district for areas where home prices are way above the median. Waterfront would be their first target.

    So instead, I will continue to enjoy my comfortable estate hidden among working class homes in an rural equestrian community. My tax foot print is relatively small when compared to a similar size property and home on the waterfront.

  3. Which is worse - Stealing from a man for owning property or stealing from his labor? The bratty little Liberal parasites need to answer.

  4. The mentally retarded psychopaths that we kindly refer to in a Democracy as "Voters" have to pay this tax on living (aka, property tax) as well. Are they really that stupid to believe that the terrorist organisation commonly refered to as "Government" works in their best interest?

  5. If you don't pay their ransom called "property tax" what will they do? You are not allowed on "their" property? Do you have to kill yourself for trespassing?

    People are stupid.