NYC-WTC_000195490

NYC 9/11 Public Portal Document

r Class Shares and City Discretion: The City adopts property tax rates annually for each of the four classes of property. Under the provisions of the Real Property Tax Law, the total levy is apportioned to each of the four classes by the “class shares” (the portion of the total levy allocated to each class). Once the class levies are set, the City Council sets the tax rate by dividing the levy for each class by the billable assessed value for (he class. , vV / ijfi ' As originally enacted, S/7000A required that the class shares for the 3981 roll be certified as base iiij' ■ proportions. These base proportions were to be modified periodically by ORPS for relative changes in market

/ Discretionary Adjustments and Class Shares

I) Classi Discretionary Class Class 2 Discretionary Class Class 3 Discretionary Class Class 4 Discretionary Class Shift (%)^ Share ' Shift (,%) Share Shift (%) Share / Shift (%) Share 1983 ... (3.88) 0.141 (2.85) 0.263 4;80 0.180 Z 1.25 0.416 |i 1984 ... (0.58) ' 0.139 0.00 0.260 o'oo ’ 0.180 0.53 0.421 ’ 1985 ... (3.22) 0.134 (0.37) 0.259 (1.28) 0.178 - 1.83 0.42'9 1986 ... (9.15) 0.129 ’ (0.68) 0.255 (2.02) 0.182 - 1.96 0.434 1987 ... (4.95)’ 0.125 , 2.69 0.254 (4.60) 0.166' 1.76 0.455V 1988 ... ) (2.81) 0.122 0.60 0.255 (4.51) 0.157' 2.07 0.466 \ 1989 ... : (4.36) 0.116 0.58 0.256 (4.95) 0.150* 2.49 0.478 1990 ... (5.00) 0.111 0.23 0.257 (4.49) 0.139 2.44 0.493 1991 ... (5.00) 0.109 (2.18) 0.258 (4.50) 0.103 3.19 0.530

City Council's discretion to adjust class shares no longer applicable beginning in 1992. 1992 .... ...... —■ 0.135 — 0.280 — - 0.078 0.527 1993 2... — 0.113 — 0.290 — 0.066 0.532 1994 .... —! 0.116 — 0.308 0*308 — 0.058 0.518 1995^... — 0.119 — 0.316 V 0-059 0.505 1996^.......... —• 0.122 0.122 — 0.326 0.326 , — 0.062 0.490 1997^../...... —i 0.125 0.125 — ,0.3^6 — 0.064 0.475 1998-’.......... 0.127 0.127 __ // 0.339 0.339 _ 0.069 0.465 1999'’........... _i 0.130 0.130 _ 0.332 0.332 __ 0.071 0.467 2000'^...... . _JJ 0.133 0.133 _ ;' 0.341 0.341 ir. __ _ 0.074 0.452 2001 ......... 0.135 0.135 ;• 0.345 __ 0.076 0.444 ■

(7) From 1983-199i} City Council had authority to reallocate the tax levy among the classes, as long as the resulting share was within five percent of the prior year’s, share (before taking Uto account physical change). (2) In 1993, State law capped the maximum increase incurrent base proportion over 1992's share to two percent instead of five percent. Class 2 exceeded the two percent ceiling and the excess was distributed to Class I and Class 3. (3) State law capped the maximum increase in current base proportion over the prior year’s shares at 2.75 percent for 1995 and 1996 and 2.50 percentfor 1997,1998,1999and 2000 instead offive percent. For 1995 -1997 Classes 1, 2 and 3 ; exceeded the revised cap. In 1998,1999 and 2000, Classes 1 and 3 exceeded the revised cap. All of the excess was I distributed to Class 4 for 1995-2000. In 2001,'the State law capped the maximum increase in current base proportion • over prioryear’s shares at 2.0 percent. Class 1 and 3 exceeded the cap. All of the excess was distributed to Class 4.

values among the four classes as well as for physical change. While the adjustment for physical change took place each year, the first market value adjustment was not scheduled until 1987. At that time legislation , postponed-the implementation of market value changes until calendar year 1989 (for use in fiscal year 1990). This legislation also substituted the 1984 class shares for 1981 base proportions in calculating market value changes. Legislation passed in the spring'of 1989 amended S.7000A, changing the tiiechanics of the market value adjustment and further postponing it until 1992 in order to prevent a significant shift in tax burden towards Class 1 taxpayers in fiscal year 1990. From 1983 to 1991, the City apportioned the tax levy by using Hi'

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NYC-WTC_000195531