NYC-WTC_000195490

NYC 9/11 Public Portal Document

exemption to the tax law and specific to New York City. /[ Real property tax exemptions and abatements, which totaled $1,636 million in 2000, can be grouped into three general categories: economic development, residehtial and other, which includes utility exemptions. I? Economic development exemptions are granted under the City’S| Industrial and Commercial Incentive Program Ec, mI' (ICIP)i the Commercial Revitalization Program and by City and State development corporations. The New York City Housing Authority is the single largest source of residential exemptions. The remainder of residential tax relief is provided by'a yariety of legislatively mandated exemption and abatement programs. The other exemptions are for; certain utility properties, public authority properties and special incentives. The Comiriercial Revitalization Progrant provides substantial tax relief and is aimed at spuijring economic activity by encouraging the conversion and/or renovation of obsolete commercial buildings. DOF, which administers many of the City’s taxes and maintains records, on these expenditures, has aided in the estimation of their value (see the table following titled: “Estimated Value of Real Property Tax Exemptions and Abatements”),

II!?/ The reserve for refunds covers reimbursement to taxpayers who have overpaid their tax liabilities, or whose liabilities were reduced after payment was made. The level of refunds which had risen dramatically in Rci the mid-90s, reaching a peak of $400 million in 1996, has decreased to $215 million in 2001, as a result of reductions in certiorari settlements. ( Property Tax Revenue ($ Millions) |i I

1996 1997 1998 1999 2000 2001/ 2OO2f

Levy $7,871.4 $7,835.1 $7,890.4 $8,099.3 $8,374.3 $8,730.3 $9285,0 Current Year Reserve* (640.7) (46318) (476.0) (580.1) (606.2) (700.3) (600.0) Prior Year Collections 100.3 146.8 148.2 127.7 149.2 137.0 128.0 Refunds (399.7) ■(2171.4) (345.1) (167.2) (189.4) (215.0) (220.0) Sub-Total $6,931.3 $7,246.7 , $71217.5 $7,479.7 $7,727.9 A $7,952.0 $8,593.0 Receivables/ Lien Sale Proceeds ** 169jl 43.9 ' 21.7 ;119;1 62.2 184.3 50.0 Sul Total $7,1004 $7,290.6 $7,239,2 $7,598.8 $7,790.1 $8,136.3 $8*643.0 (i OtI II * Includes cancellations, delinquency, net credits, abatements, exempt property' restored, shelter rent and STAR.' '( ** Net ofdefective lien reserve and repurchase ofprior year defective liens. f=forecast

Forecast.-\ The real property tax revenue forecast foi; 2001 is $8,136 million, a $44 million increase from the Financial Plan level. The increase resulted primarily from a reduction in the refund forecast of $15 million i,l and an increase to the prior year delinquent tax collections amounting to $10 million, offset by $1; million increase in reserve for uncollectibles. Further, the City expects to receive an additional $20 million in Hi! proceeds from a larger pool of tax'liens sold in its regular Spring tax lien sale. * iS Y The 2002 property tax revenue forecast is based on the tentative roll which was published on January 12, 2001. Total billable assessed value on the tentative roll increased by $6.4 billion to $90.7 billion, growth of 7.5 percent. The strength in total billable assessed value reflects market value growth of 11.4 percent, which was strong for all classes. Class 1 properties showed a market value increase of 13.7 percent while Class 2 Noti ' I; increased by 10,8 percent. The market value growth for both Class 1 and Class 2 properties in Manhattan

h. registered the highest growth, at 15.5 percent and 13.8 percent, respectively. Glass 3 properties registered market value growth of 1.3 percent while Glass 4 market value increased by 9.6 percent over last year. Class 4 growth was fueled by a 10.7 percent market value growth in Manhattan primary office buildings in addition to secondary office buildings growth of 16.6 percent. This reflects existing strong demand for office space with no significant increase in supply. The final roll, to be released in May, is estimated to be about $1.0 billion ii 38 I hh i

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