Chair Lee on future tax relief from capitalization rate changes for rental buildings
Lee asks how much additional relief rent-regulated buildings will receive in future years from the capitalization rate change. Commissioner Lee says he cannot specify future dollar amounts due to many interacting factors but commits to continued monitoring and fair assessment of rent-regulated properties.
Just two more sort of follow-up questions.
So changes to market values are phased in over five years for most rental buildings, which implies the 1.3 reduction in taxes.
This year will grow over to the next several years.
So can you provide us with how more relief these buildings
get in future years because of these changes?
Sure.
So just to kind of rehash the higher capitalization rate that we utilize for this year's role,
the rent-regulated buildings had their market value reduced by 3.3% on average, and the taxes reduced by about 1.3%.
So the rent-regulated buildings are a top priority for this administration, and we're going to continue to evaluate the evaluation methodologies that are used to ensure that all of these buildings are taxed fairly.
But there are a lot of other factors that go into that calculation.
And so I can't really say with certainty what percentage or what dollar amount will be attributed to this change in the future.
But we're going to continue working on this.
We're going to ensure that the tax assessments are accurate and reflect the values to the best of our ability.
And we'll properly manage and closely monitor the sector of the rental market as the year goes.
Okay.