Limits on Assessed Value Increases

New York

2014

Assessment Limit

Limits on Assessed Value Increases

These limitations apply only in New York City and Nassau County. Increases of the assessed values for individual parcel are based on the class of property. For Class 1 properties, mostly 1, 2 and 3 family or unit residential properties, in both New York City and Nassau county, cannot increase by more than 6% per year or 20% over five years, unless the value increases are due to new construction or renovations. In addition, assessed value cannot exceed 6% of the home’s market value. For Class 2 property are all residential properties, including rentals, coop and condominium apartments. New York City divides the For building with 10 units or fewer, the assessed value cannot increase by more than 8% from the year before or 30% over 5 years , which ever is lower and is capped at 45% of market value, For Class 2 property with 11 units or more, as well as Class 4 properties which includes office, retail, loft, factory, and warehouse properties, increases in assessed value are phased in over 5 years. When a new assessment is made each year, any additional change is again spread out over 5 year period. In Nassau County, assessment increases for all classes other than Class 1, residential, and Class 3, utility, are phased in over 5 years. When a new assessment is made each year, any additional change is again spread out over 5 year period.

There is no override process.

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