The Department of Finance assigns market values to all properties in New York City. Market value is the worth of your property determined by the Department of Finance based on your property’s tax class and New York state law requirements for determining market value.
One, two, or three-unit residential properties. The Department of Finance uses statistical modeling to analyze prices of similar properties (based on factors such as size and location) that sold in your neighborhood in the prior three years.
Residential property with more than three units, including cooperatives and condominiums. State law mandates that the Department of Finance value all tax class 2 properties as income-producing, based on their income and expenses. We use a statistical model as a tool to find typical income and expenses for properties similar to yours in terms of size, location, number of units, and age. Then we apply a formula to the income data to get to your market value. The law requires that we value co-ops and condos as if they were rental buildings, even though they are not income-producing.
Utility company equipment and special franchise property: The Department of Finance uses the cost of constructing, reproducing, or replacing the building added to the land value.