Property Taxes Ranked By State County: Where Does Staten Island Fall? Plus, NYC Specific Tax Assessment Discussion

PropertyShark created a resource about property taxes by state. Our piece contains property taxes ranked by state, specifics for the states with the lowest and highest property taxes, as well as comparative charts and visuals. 

You can find information on Staten Island Property Tax here: https://www.propertyshark.com/mason/info/Property-Taxes/NY/Staten-Island/.

As for Richmond County, it has a median home value of $637,100, with homeowners paying an average of $5,844 in property taxes annually. This reflects an effective tax rate of 0.92%, slightly below the state average. With 68.6% of housing being owner-occupied, Richmond County offers a more traditional homeownership model compared to the urban core of New York City.

New York City tells a different story. The median home value here is higher at $732,100, and the annual median property tax paid stands at $6,121, despite a lower effective tax rate of 0.84%. The city’s housing market is heavily skewed towards rental, with 67.1% of housing being renter-occupied, a significant contrast to both Richmond County and the overall state.

Zooming out to look at New York State as a whole, we see a median home value of $384,100 and a median property tax bill of $6,303, translating to a higher effective tax rate of 1.64% compared to both Richmond County and New York City. The state presents a balanced mix of owner-occupied and renter-occupied housing, with 54.3% of homes being owner-occupied. This indicates a diverse housing market that caters to a wide range of preferences and financial capabilities, with the median household income standing at $81,386.

When comparing New York’s housing market to the United States overall, major differences become apparent, as expected. The national median home value is significantly lower at $281,900, with median property taxes also lower at $2,869, as is the national effective tax rate, coming in at 1.02%. The distribution between owner-occupied and renter-occupied housing is more balanced on a national level, with 64.8% of homes being owner-occupied. The median household income across the United States is $75,149, slightly lower than in New York State and significantly lower than in Richmond County.

The resource they provide contains the following statement about assessment rates:

This was further clarified by PropertyShark:

The assessment rate of 45% for tax classes 2, 3, and 4 is indeed correct, as corroborated by the information available on the NYC Department of Finance website.

It seems there may have been a mix-up between the assessment rate and the tax rate. The assessment rate, as mentioned in the query, is used to determine the property’s assessed valuation, which is then used to calculate the property tax. For a more detailed explanation on how property taxes are determined, including the distinction between tax rates and assessment rates, I recommend visiting our resource on determining property taxes

Furthermore, for clarification on the classification of properties in NYC and to understand better which class your property may fall into, please refer to the Definitions of Property Assessment Terms on the NYC Department of Finance website where you can see that Property in NYC is divided into 4 classes:

• Class 1: Most residential property of up to three units (family homes and small stores or offices with one or two apartments attached), and most condominiums that are not more than three stories.
• Class 2: All other property that is not in Class 1 and is primarily residential (rentals, cooperatives and condominiums). Class 2 includes:

o          Sub-Class 2a  (4 –  6 unit rental building);

o          Sub-Class 2b  (7 – 10 unit rental building);

o          Sub-Class 2c  (2 – 10 unit cooperative or condominium); and

o          Class 2  (11 units or more).

• Class 3: Most utility property.
• Class 4: All commercial and industrial properties, such as office, retail, factory buildings and all other properties not included in tax classes 1, 2 or 3.

Further: 

Indeed, the significant difference in assessment rates — 6% for Class 1 properties, like individual homeowners, versus 45% for multi-unit and commercial properties — stems from a variety of factors, among them being the potential revenue generation from these properties. It’s a nuanced topic, but here’s a breakdown to make it clearer:

Why the Higher Assessment Rate for Multi-Unit and Commercial Properties?

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Revenue Generation Potential: Multi-unit and commercial properties have the capacity to generate substantial income through rent, sales, job creation, tax revenues, and overall urban development. This capability is a primary reason for their higher assessment rate. The logic is that properties that can produce more income should contribute more in property taxes.

Fair Taxation: The system aims to distribute the tax burden equitably. Since commercial and multi-unit residential buildings benefit more economically, they are assessed at a higher rate. This approach helps balance the tax load, ensuring that not all the weight falls on individual homeowners.

Public Services and Infrastructure: These properties often demand more from local services and infrastructure. Higher taxes from commercial and multi-unit buildings support the broader community by funding essential services like roads, schools, and emergency services, which these properties utilize intensively.

In essence, the difference in assessment rates reflects an effort to balance the economic capabilities of property owners with their contributions to the community’s wellbeing. It’s a delicate balance, aiming to ensure fairness across the board.

Banner Image: Multi unit building. Image Credit – Étienne Beauregard-Riverin

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