A New York state law on the books since the 1980s undervalues property tax rates on multimillion dollar residential buildings, providing astonishing discounts to New York City’s wealthiest homeowners.
Elizabeth Harris explores the effect of an obscure New York state law that ties the valuation of condominiums and co-ops for tax purposes to comparable rental buildings, rather than apartment sales. Of course, says Harris, "At the tippy top of the market, populated by $20 million, $30 million, $40 million, even $88 million apartments, real estate experts say that truly comparable rental buildings essentially do not exist."
"An apartment at the Plaza Hotel that sold for $48 million last year is valued by the city at $1.7 million. A condo at 80 Columbus Circle that sold for $30.55 million last summer is valued at $2 million. And the $88 million apartment is valued at $2.97 million, or just 3.4 percent. The impact on city revenue needs then ripples down."
"If a certain kind of property is systematically undervalued, another kind of property has to pick up the slack," said Andrew Hayashi, a property tax expert at the Furman Center for Real Estate and Urban Policy at New York University.
The state law was enacted in the 1980s, during a different real estate market, but when the subject of reforming the law is explored, "technical and political pressures tend to overwhelm the cause, which then is quietly put on a shelf."
Thanks to Jessica Hsu
FULL STORY: Where Everything Is Lavish Except the Property Taxes

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Chicago’s Ghost Rails
Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

Amtrak Cutting Jobs, Funding to High-Speed Rail
The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

Ohio Forces Data Centers to Prepay for Power
Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

MARTA CEO Steps Down Amid Citizenship Concerns
MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant
A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Caltrans
City of Fort Worth
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie