Q&A
Potential increase in property taxes due to new development rights
5:50:49
·
94 sec
Council Member David Carr expresses concern about the potential increase in property taxes due to new development rights created by the zoning proposal, even for homeowners who do not take advantage of these rights. Chair Daniel Garodnick responds to these concerns.
- Carr argues that the new development rights could increase the taxable value of properties, even if homeowners don't develop.
- He suggests this could create a tax incentive to sell or develop, potentially impacting middle-class homeowners.
- Garodnick acknowledges the importance of the issue and mentions previous consultations with the Department of Finance.
- The chair commits to following up with the Department of Finance to provide a satisfactory answer to Carr's concerns.
David Carr
5:50:49
But I I just I don't wanna turn because this I have limited time left, and I wanna talk about something I referenced earlier in my first questions, which is, you know, the taxable value of these of these properties if this were to come into effect.
5:51:03
And the reality is even if the development rights that you would be affording under this tax application would have become effective.
5:51:10
Many would not take advantage of it.
5:51:11
As your own study suggests, and this will play into the taxable value of these properties and the DoF property tax assessments will come back, which is to some degree based on market value, and people are gonna be taxed more even though they may not be developing their properties under the new zoning rules.
5:51:28
And so you're creating a tax incentive incentive to either sell, or develop.
5:51:34
And so I'm I'm not sure you've really taken into consideration what that's gonna do to, you know, middle class, working class people who do own a home.
5:51:41
And you've said before, when you're talking about rent burden people, that doesn't include their tax burden.
5:51:46
So I know you're well aware of this issue.
5:51:48
Tax burdens are high.
5:51:50
So, you know, I think that this is gonna be a huge revenue yield for the city, but it's gonna come at the expense of everyday New Yorkers.
Daniel Garodnick
5:51:58
Thank you for that question.
5:51:59
It may be worth a follow-up from the Department of Finance ants because we have consulted with them for the reason that you correctly point out about whether the opportunity for an ADU would affect the assessed valuation.
5:52:10
They have assured us that that would not affect the assessed valuation of the home, but we would like to follow-up because I think you're raising a good question.
5:52:17
I want to make sure that you have a satisfactory answer from them, not just me.
David Carr
5:52:21
Thank you.
5:52:21
Thank you, chair.
