NYC, New York City, computes condo loft’s taxes per unit in a unique way.
1) They determine an estimated total for the total rent of all the lofts in the condo building.
2) They then estimate the total expenses for all the residential lofts in the condo building.
3) They subtract the estimated expenses from the estimated total rent of all the lofts in the building
4) Then they divide by the capitalization rate of 14.228%
5) This provides NYC department of finance with the market value for all the lofts in the condo building.
6) Next they determine a market value for your loft by attributing a portion of the residential market value of the condominium to your loft and then multiplying that amount by an allocation factor.
7) The NYC dept. of finance decides on what the percentage they allocate to your building. With that percentage they multiply that by the estimated market value, item 5, and they come up with your loft’s market value. They also estimate the rental rate for your loft.
In January owners of condo lofts will get notice of property value, which can be disputed with the NYC dept. of finance. As you can see the word estimate is used a lot and it creates a variable playing field for different buildings and locations.
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