REMARKS
Property tax interest rates for FY25
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124 sec
Council Member Brannan discusses the proposed interest rates for late payment of property taxes in FY25. He outlines the Banking Commission's recommendations and the Finance Committee's decision to adopt lower rates.
- Rates vary based on property assessed value, ranging from 6% to 16%
- Lower rates adopted than those recommended by the Banking Commission
- Rates represent a 1% increase from the previous fiscal year, except for properties subject to payment plans
Justin L. Brannan
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Today, we'll also be voting on 5 legislative items, 4 pre considered resolutions relating to interest rates on late payment of property taxes and introduction 962.
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Pursuant to both the charter and the administrative code every year The New York City Banking Commission recommends to the city council interest rates to charge for nonpayment of property taxes.
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For FY 25, the banking commission recommends the following rates.
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For properties with an assessed value of no more than $250, 000, 9%.
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For properties with an assessed value of no more than $250, 000, for which the owner has entered into an installment payment agreement with the Department of Finance for payment of delinquent property taxes 6%.
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Properties with an assessed value of more than $250, 000, but less than $450, 000, 15%.
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Properties with an assessed value of more than $450, 000 18%.
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Committee is voting to adopt lower interest rates than the recommended by the banking commission, and we're voting as follows.
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For properties with an assessed value of no more than $250, 000, 6%.
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Properties with an assessed value of no more than $215, 000 for which the owner has entered into an installment payment agreement 2.5%.
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Properties with an assessed value of more than $250, 000 but less than $450, 000, 9% and properties with an assessed value of more than $450, 000.
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16%.
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Remember, these are these are interest rates related to late payment of property taxes.
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The resolutions we are voting on represent a 1% increase from the rates adopted last fiscal year except for the rate for properties subject to a payment plan which represents a 0.5% increase.
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The finance committee believes this small increase balances the need to maintain the effectiveness of interest charges to encourage timely payments of taxes without creating an overly burdensome charges on homeowners.