Even though the city's Department of Finance apologized, Queens co-op owners are still furious that a DOF computer error caused their property values to rise as much as 147%. (Higher property values mean higher property taxes.) The DOF says it'll cap the increases to 50%, but residents think that's BS: Sherry Davis, who lives in Douglaston, told the NY Times, "How it is possible that the values of our properties can go up by more than 100 percent during one of the biggest real estate declines in a generation? This is the last affordable part of New York City — this isn’t Chelsea or the Upper East Side for goodness’ sake — and we risk being priced out of our own neighborhood." more ›

Finance Commissioner David Frankel admitted yesterday that mistakes were made when his office miscalculated the city's condo and co-op property values to reap increased tax revenue, according to The Post. Frankel's office initially increased the value of some homes, like Queens State Senator Toby Stavisky's, by as much as 147% from 2010 to 2011. Housing bubble, schmousing bubble. Didn't you guys get your complimentary Infinity Pool after the bailout? more ›

The Real Estate Board of New York has asked the Bloomberg administration to consider a real estate tax cap of 20 percent for buildings no longer eligible for the 421-a tax-abatement program, warning that if property taxes keep rising, landlords will make "affordable" units market-rate in order to keep up. But according to Bloomberg, "Our property taxes in New York City happen to be very low compared to the rest of the state." Not for long? more ›

The Finance Department recently announced that property values went up in the city... which also means property taxes will go up. A Queens resident complained on Mayor Bloomberg's WOR show that Bayside property values zoomed up 50-100%, "It's making the taxes absolutely unaffordable. Nowhere in the city were the assessed values doubled. They targeted this area." Bloomberg didn't think Bayside was targeted, but added that "in some areas they haven't assessed for a long time." Example: Bloomberg's East 79th Street townhouse went up in value from $11 million to $16 million (luckily he has billions to pay his property taxes!). more ›

Good news/bad news for property owners in NYC: The good news is that the Finance Department has announced that single family homes are now worth 2% more than a year ago and apartments are up 4% (pdf). And even though most of the increases were to be found in manhattan, this means the bad news of property taxes going up all over the city, due to what the Daily News calls the city's "arcane property tax rules." more ›

India & Mongolia, 1, New York City, 0: A federal appeals court ruled that NYC cannot demand "taxes on space in diplomatic missions that the city says is not used for diplomatic purposes," according to City Room. The city has claimed for the past seven years that India and Mongolia owe tens of millions in property taxes because their are parts of their buildings that house employees and staff. more ›

Foreign governments will no longer have to pay property taxes on some of their diplomatic buildings in New York after a change in policy by the U.S. State Department. The NY Post reports the policy reversal will cost the city "untold millions in future lost revenue" as well as $260 million in unpaid back taxes—including a check from the Hungarian consulate worth $32.5 million that was canceled only days after the State Department's policy change. Undersecretary Patrick Kennedy explains to the Post the decision was made because other countries don't ask the U.S. to pay taxes on its overseas property: "Those countries have come to us and said, 'Wait a minute. Why is New York taxing us when we don't tax you?'" But, besides the loss of potential income, what has some surprised about the new policy is the political U-turn it represents for Secretary of State Hillary Clinton, who previously championed the city's right to collect those taxes when she was a senator. Though the decision may not win her much popularity at City Hall, she'll no doubt have a few new friends at the Indian and Mongolian embassies, both of which are now off the hook after losing a federal court battle over $46 million in back property taxes last year. more ›