Clayton, NY · Member since 2015 · 157 posts · 35 votes
How do tax assessed values on commercial/residential properties go up or down?
I'm looking at a commercial property that has been assessed at the same amount, $94,400, since 2007. It's a 5 unit property in a decent neighborhood. My question is this: how can that amount change (for better or for worse)? I know improving the property is obviously going to make it worth more, but how has this property's assessed value has remained the same for 9 years? When you file your permit with the town they know how much value you're adding so I'm assuming they update the value on the spot. However, does having an appraisal done on the property affect the number determined by the tax assessor at all? I guess what I'm trying to ask there is if the appraiser has to disclose any new property appraisal values to the city/town?
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y
Assessments are done at the county level by the tax assessor, and at the Village/Hamlett level if incorporated (the two numbers don't always agree).
Appraisals have nothing to do with the county. Where the county gets notice of changes in property value is when the sale is recorded or permits are obtained for substantial work on the property.
Assessors operate differently all over the country. If the local operating budget hasn't changed much, or there is a lot of political wind in the area, assessments are sometimes not updated for years. If the county needs to raise more tax revenue due to operating budget increases then they'll probably try to assess on a regular basis like every 2 years, but political pressure might hold them back. The other option for the county is to raise the tax rate but leave the assessments alone.
Clayton, NY · Member since 2015 · 157 posts · 35 votes
9y
@Christopher Phillips Thank you for explaining that. It makes more sense now, and I can see why property assessments go unchanged for years. When you say "substantial work", is there typically a limit that they will overlook so to say, (5k, 10k, 15k?) when filing for permits before they'll adjust the assessment value?
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y
It's more like additional rooms, additional square footage like finishing a basement, adding things that would increase value like extra bathroom. In some counties, the tax assessor never stops by the house and uses general area values. In smaller areas, the assessor might pay a visit.
Clayton, NY · Member since 2015 · 157 posts · 35 votes
9y
@Christopher Phillips So while we're on the topic of tax assessments, I do have one slightly off topic question. I was going over a tax bill on a prospective property and noticed that the city tax amount looked awfully high. After digging into them a little further, I found out that there are amounts included for a DPW relevy & a sewer water relevy this year and last year. What exactly do those mean in terms of city tax bills? This is the first of many properties that I've analyzed in that city to have this.