So the root issue here is that the NYC property tax law is written such that there’s a cap to how much property taxes can go up in a given year. Which, historically, made sense as a protection from shock tax hikes. The problem is that gentrification has meant certain neighborhoods’ homes have gone up dramatically in market value, but the property taxes are still lagging. This creates an invective to jack up property taxes in lower income neighborhoods that haven’t gentrified nor seen massive market value increases in order to make up the difference.
So the root issue here is that the NYC property tax law is written such that there’s a cap to how much property taxes can go up in a given year. Which, historically, made sense as a protection from shock tax hikes. The problem is that gentrification has meant certain neighborhoods’ homes have gone up dramatically in market value, but the property taxes are still lagging. This creates an invective to jack up property taxes in lower income neighborhoods that haven’t gentrified nor seen massive market value increases in order to make up the difference.
How does one jack up the property taxes in lower income neighborhoods if there is a cap to how much they can rise in a single year?
Well it’s more like the property tax goes up even though the market value hasn’t gone up.