How much should I expect to pay the movers?

How much property tax should I expect to pay for a $1mm condo in Manhattan?

• If I buy a condo in Manhattan for $1,000,000 (the actually market price), how much property tax should I expect to pay each year? I have checked online and find that the 2010 real estate tax rate for a condo (class 2) in NYC is 13.24% and the assessment ratio is 45%. Therefore, I figured that I should pay roughly $1,000,000 * 45% * 13.24% = $59,589 annually, or $4966 monthly. (This amounts to an effective rate of 13.45% * 45% = 5.96% on the total market value.) However, as I searched through the web for other information, I found that the tax in the real world is far less than the above theoretical value. For example, I saw a posting from a property sales agent mentioning an condo sold for $3,500,000. In that post, he said that due to the 421A Tax Abatement, the current ANNUAL tax is merely $2412 !!! Even after the abatement expires, the tax will only rise to $31,000 PER YEAR, which is still less than 1% of the total market value. My questions are as follows: 1. Do tax authorities estimate property value in a two step process such that they first estimate the real Market Value, and then apply the 45% assessment ratio to get the taxable value, or just a one step process in which they just directly give a single taxable value and call it "Market Value"? Or speaking in another way, will the tax authority (a) Assess the condo at a value close to the real market value, and then multiply that value by 45% to get the taxable value; or (b) Assess the condo directly to a value approximately 45% of the real market value, and let me pay the 13.24% tax on this value; or (c) Assess the condo to a "market value" that is substantially lower than the real market value, and then times 45%, and then ask me to pay tax on that? 2. As in the subject line of this post, how much should I expect to pay? If possible, please provide the detailed numerical calculation process. Thank you very much!

• Answer:

  New York City is steep. Your calculations are correct. They will assess at price you paid That real estate ad lied. House in the Bronx assessed at 60k and the tax was 3k