As Real Estate Prices Fall, More Owners Challenge Property Assessments
More Rye residents are telling assessors they've got it wrong when it comes to pricing their properties.
Confronted with some of the highest property taxes in the nation and facing continued economic uncertainty, Rye residents are starting to push back with an unprecedented increase in property assessment challenges.
Town of Rye residents filed 800 grievances in 2009 compared to 500 in 2008. The City of Rye also saw an almost 50 percent increase in assessment challenges, from 198 complaints filed in 2008 to 293 complaints in 2009.
"It represents just under 6 percent of properties [in the City of Rye]," Assessor Noreen Whitty said. "Which is lower than other Westchester communities. Some were as high as 10 or 12 percent."
Residents are disgruntled by their taxes, which, according to the Census Bureau, are more than four times the national average. The median Westchester tax bill was $8,890 in 2009, compared to $3,622 for the state, and $1,897 for the nation as a whole.
Put that up against unemployment – which rose in Westchester from 5.3 percent in November 2008 to 6.8 percent in November 2009 – and people are looking for any way to cut back.
"Rye was hit particularly hard because there's a heavy population of people who work in financial services. So a lot of people were laid off. Once people were faced with a year or two out of work, they started to look at all potential forms of savings," said Mark Gardner, chairman of the City of Rye Board of Assessment Review.
The potential savings can be significant for owners who successfully challenge their assessments. This year the city of Rye increased its property tax rate 1.56 percent, to slightly more than $139 per thousand of assessed value. Gardner said the board reduced 120 assessments by an average of 7.5 percent, saving these residents thousands in taxes.
"We actually changed more this year both in number and in percentage than we had in pervious years, partially because of volume, and partially because we had more educated consumers," he said. "People evaluated what they're paying and realized they had a shot."
Several Rye homeowners declined to be interviewed for this story, but public records show that some were successful in getting a six figure drop in their assessment while others got no reduction at all.
Last year, Rye resident Sandra Mastrogiacomo got the assessment on her Midland Avenue home reduced by close to $200,000, from $850,000 of assessed value to $675,000. Mitchell and Cynthia Schaffler received a $100,000 reduction on their Central Avenue home, from $1.2 million of assessed value to $1.1 million.
Others weren't so lucky. James and Jennifer DeWinter received no reduction on their $1.47 million Beverly Drive home, as did Steven and Isabel Rimmer, whose assessment on their Ridge Street home stayed at just over $1.58 million.
For those left dissatisfied with their assessment, the fight continues, leaving government with significantly more work and more costs incurred by the sometimes lengthy legal filings.
"Property owners are claiming their property is only worth 10 to 20 percent of what the town has assessed," Town of Rye Supervisor Joseph Carvin said. "They don't want to pay their fair share of taxes."
The Town of Rye is dealing with 200 certiorari cases, and the City of Rye currently has seen a 124 percent increase, from 45 filings in 2008 to 101 filings last year.
"I believe people are upset about their taxes because they continue on an endless spiral upward. Westchester County has amongst the highest property taxes anywhere." Town of Rye Assessor Mitchell Markowitz said. "If you receive no raise and your taxes go up, then your taxes are eating more of your income."
RyeBob
2:10 pm on Saturday, January 30, 2010
Tax cert claims are also filed by business owners, country clubs, and condo owners. One of the disturbing results is that families living in condos end up paying property taxes as if they lived in apartments - effectively at a lower rate than home owners because their property is valued on an theoretical rental value and not market value.
As individuals have their own assessments reduced, everyone's individual tax rate must go up to produce the same level of tax revenue for the City, County and School District. So, this is really a zero sum game, but with short term wins for those who file. The fairest solution would be to conduct a city-wide revaluation.